Motorcycle insurance offers protection in the event of damage or theft to your bike, scooter, moped, ATV, or UTV. Additionally, it provides financial security if you are held accountable for causing injuries or damages to others while riding.
Owning a motorcycle or having plans to do so necessitates the acquisition of motorcycle insurance, which can potentially amount to $148 per month, as stated by Insurify. It is important to note that this figure pertains to full-coverage motorcycle insurance. However, for a standard bike, the average cost for minimum coverage is significantly lower at $68. It is worth mentioning that in almost all states, motorcycle insurance is mandatory by law. Therefore, conducting thorough research and comparing various motorcycle insurance companies can assist in finding the most suitable coverage at an affordable price.
If you possess a motorcycle and intend to use it on public roads, the majority of states mandate a certain level of “financial responsibility.” This entails being able to cover costs in case you are responsible for an accident resulting in property damage or injuries. Many motorcyclists comply with financial responsibility regulations by procuring motorcycle insurance.
Here is a guide on how to customize a motorcycle insurance policy to ensure you have adequate insurance coverage while riding.
Motorcycle insurance is a mandatory requirement imposed by the government to ensure that individuals involved in a motorcycle accident have financial protection. This insurance covers expenses related to injuries, fatalities, and property damage caused by the accident. It provides coverage for repairing or replacing damaged assets, medical treatment and rehabilitation for injuries, and even income replacement in case of disability resulting from the accident. Additionally, motorcycle insurance also covers the repair or replacement of your motorcycle and its contents, even if the accident is caused by an uninsured motorist. While the law specifies a minimum insurance requirement for motorcyclists, it is advisable to consider purchasing additional coverage if it fits within your financial means.
How Motorcycle Insurance Functions
Motorcycle insurance functions similarly to car insurance as it provides coverage for vehicle damage, property damage, and injuries. If you already have car insurance, you will find familiar terms such as collision, comprehensive, and liability when it comes to coverage options.
Moreover, the process of filing a motorcycle insurance claim resembles that of car insurance. In the event of vehicle damage or theft, you inform your insurance company and initiate a claim. The insurance company then assesses the situation and determines the appropriate payout amount.
Different Categories of Motorcycle Insurance.
Below are the various components of motorcycle insurance along with their respective coverage details.
| Type Of Coverage | What It Covers |
|---|---|
|
Liability insurance
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Pays for injuries and damages you cause to others and your legal defense if another person involved in the accident sues you
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Guest passenger liability
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Pays for your passenger’s medical expenses if you cause an accident
|
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Uninsured/underinsured motorist coverage
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Pays for medical expenses if you’re hit by someone who doesn’t carry any liability insurance or not enough to cover your medical bills
|
|
Medical payments (MedPay)
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Pays for you and your passenger’s medical expenses, no matter who caused the accident
|
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Personal injury protection (PIP)
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Like MedPay, covers you and your passenger’s injuries no matter who caused the accident, and also covers lost wages and replacement services for tasks you can’t do
|
|
Collision insurance
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Pays for repairs to your motorcycle for collision into objects such as fences and guardrails
|
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Comprehensive insurance
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Pays for motorcycle theft and damage from fire, floods, vandalism and more
|
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OEM endorsement
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Ensures original equipment manufacturer parts are used to repair your motorcycle
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Custom parts and equipment coverage
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Pays to repair or replace custom and aftermarket parts
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Total loss coverage
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Helps replace your totaled motorcycle with a new or similar motorcycle
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Roadside assistance
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Pays for certain expenses related to a mechanical or electrical breakdown, such towing or fuel delivery
|
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Trip interruption coverage
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Helps pay for meals, lodging and transportation if you are stranded due to a mechanical or electrical breakdown
|
What is included in the coverage of motorcycle insurance
Each insurance policy varies, so it’s important to address your specific concerns with an agent and thoroughly review your policy when comparing options. Most bike insurance policies offer the following coverage:
1. Replacement Coverage: This allows you to replace your bike if it’s damaged beyond repair in an accident, with the specifics depending on the level of coverage you select.
2. Accessories and Custom Parts Coverage: If you’ve customized your bike, discuss with your agent to ensure those additions are included in your coverage.
3. Liability Coverage: This typically encompasses bodily injury and property liability insurance, protecting you in case you cause harm to someone else’s property or injure another person.
4. Medical Coverage: Covers your medical expenses, including those of any passengers, in the event of an accident.
5. Comprehensive and Collision Coverage: These options cover damages from collisions, vandalism, theft, and other specified risks. Your deductible for these coverages will be determined by your chosen policy options.
What is excluded from motorcycle insurance coverage
Here are some common exclusions found in motorcycle insurance policies:
1. Damage and injuries incurred while participating in racing, stunts, demolition contests, or riding on racetracks, whether temporary or permanent, or engaging in practice or preparation for such events.
2. Damage and injuries sustained while using your motorcycle for commercial purposes, such as delivering goods or transporting passengers for payment.
3. Damage and injuries sustained while using your motorcycle for work-related activities.
4. Damage and injuries resulting from criminal activities, except for traffic violations.
5. Damage and injuries resulting from deliberate self-harm.
6. Damage and injuries sustained while operating your motorcycle under the influence of alcohol and/or drugs, including but not limited to cocaine, LSD, marijuana, and other narcotics.
What makes motorcycle insurance coverage significant?
Even if you rarely ride your motorcycle or only use it for short trips around town, ensuring you have adequate coverage is essential. A single accident could result in significant expenses and potentially render your bike unusable. A comprehensive motorcycle insurance policy provides peace of mind by safeguarding you against unforeseen costs. Additionally, liability coverage, a component of motorcycle insurance, is mandatory in all U.S. states to legally operate your motorcycle on public roads.
Do you need motorcycle insurance?
If you do not reside in Hawaii, Michigan, Montana, or New Hampshire, it is mandatory to have insurance when riding a motorcycle. Several states enforce severe consequences for riding a motorcycle without insurance. Regardless of state regulations, motorcycle insurance offers crucial financial security against the expensive consequences of lawsuits, medical expenses, and repairs following an accident.
State requirements for motorcycle insurance vary across the country
Each state mandates a form of financial responsibility for motorcycle operators. While most states require motorcycle insurance for registration, even in states where it is not compulsory, having insurance is the simplest way to demonstrate financial responsibility in case of an accident. Liability is the primary element of any motorcycle insurance policy.
Liability motorcycle insurance covers property damage and bodily injuries caused to others when you are at fault in an accident. It also covers legal defense costs if you are sued by someone involved in the accident.
Liability motorcycle insurance coverage is typically represented by three numbers, such as 25/50/25, indicating:
– $25,000 bodily injury coverage per person
– $50,000 bodily injury coverage per accident
– $25,000 property damage coverage per accident
State requirements for motorcycle insurance liability coverage
Florida, New Hampshire, and Montana do not require motorcycle insurance for registration. However, in the event of an accident where you are unable to cover the damages and injuries of the other party, you may face penalties such as license suspension.
In Florida, individuals over the age of 21 can ride without a helmet but must have $10,000 in health insurance or medical payments coverage. If a helmet is worn, MedPay is not required.
In Virginia, drivers of motorcycles and cars have the option to pay a $500 uninsured motorist vehicle fee instead of purchasing insurance. The downside to this choice is that you will be personally responsible for any damages caused in an accident.
Even if your state does not mandate motorcycle insurance, it is advisable to have coverage in case you are involved in an accident.
What’s the cost of motorcycle insurance in California?
According to Insurify, the average monthly cost of motorcycle insurance in California is $92. However, it is feasible to obtain more affordable rates in California by utilizing the online tool provided by the California Department of Insurance to compare quotes from various companies.
Is the cost of motorcycle insurance high?
Motorcycle insurance typically carries a lower price tag compared to car insurance, although it can still be a significant expense. On average, liability-only motorcycle insurance costs around $68 per month nationwide, although certain states have higher average rates. The amount you pay for your premium will also be influenced by factors like your age and driving record.
Cost Determining Factors
Age and Riding Experience
Insurance providers take into account your age when determining your premiums, as older riders typically have more road experience. Teenage drivers are particularly costly to insure due to their higher likelihood of being involved in accidents compared to other age groups. Premiums generally decrease until around your 70s, after which they may slightly increase. However, insurers also consider the length of time you’ve held your motorcycle license. New riders typically face higher rates, and in some instances, older riders new to motorcycles may have higher premiums than younger, more experienced riders.
Location
Insurance costs for motorcycles vary based on geographic location due to differing state minimum coverage requirements and riding seasons. Colder states with shorter riding seasons generally experience fewer accidents. Additionally, premiums differ between ZIP codes, with urban areas having higher rates due to increased theft, vandalism, and traffic, leading to more accidents.
Driving Record and Claims History
Your driving record and claims history significantly impact your motorcycle insurance premiums. Violations like speeding tickets or DUIs indicate to insurers that you may pose a higher risk, resulting in higher premiums. Similarly, being at fault in an accident or having a history of filing claims can negatively affect your premium.
Age and Type of Motorcycle
The type of motorcycle you ride affects insurance costs, with sport and touring bikes typically costing more to insure than scooters or cruisers. Insurers also consider the age of the motorcycle when determining rates.
Credit Score
In most states, insurers use credit-based insurance scores to assess risk when setting motorcycle premiums, based on factors like payment history and debt utilization. Individuals with poor credit tend to file more claims, leading to higher premiums. Applying for motorcycle insurance does not impact your credit score.
Choice of Coverage and Deductible
Your chosen coverage types, limits, and deductible amount influence your premium. Liability-only insurance is generally cheaper than full coverage, but opting for higher liability limits or additional coverages like roadside assistance raises your rate. Similarly, choosing comprehensive and collision coverage with a higher deductible can lower your premium, but ensure you have sufficient savings to cover the deductible if needed.
Is it possible to obtain motorcycle insurance without possessing a license?
It is common for numerous insurance companies to refuse to provide motorcycle insurance to individuals who do not possess a license. This is the reason why the majority of individuals obtain a license prior to purchasing a motorcycle.
Unveiling the Secrets to Picking the Best Motorcycle Insurance
Determine Your Required Coverages
While a standard full-coverage insurance policy may suffice for many riders, if you own a new motorcycle or possess expensive safety gear or equipment, you might require additional add-ons to enhance your protection. For instance, if you’re seeking gap coverage, start by narrowing down your options to insurers that provide this feature.
Compare Quotations
Ensure to gather quotes from various insurance providers, as each company prices its policies differently. You may want to explore both local and national motorcycle insurers. When comparing quotes, make sure they offer the same liability limits across companies. However, remember that while price is essential, it’s not the sole factor to consider.
Seek Out Discounts
If you already hold an auto insurance policy, consider requesting a quote from your current provider. Many car insurance companies that offer motorcycle insurance extend multi-policy discounts. Additionally, inquire about other potential discounts such as safety course incentives, payment discounts, and affinity discounts.
Assess Third-Party Ratings and Reviews
Examine financial strength ratings from independent agencies like AM Best and S&P Global. Also, refer to J.D. Power studies like the 2023 U.S. Auto Claims Satisfaction Study and J.D. Power 2023 U.S. Auto Insurance Study. While browsing customer reviews on third-party platforms such as Trustpilot and the Better Business Bureau (BBB), be mindful that most auto insurance companies tend to receive average to low ratings. However, look for recurring patterns of concerning complaints. Additionally, check the National Association of Insurance Commissioners (NAIC) complaint index for the companies under consideration, though note that the NAIC doesn’t differentiate motorcycle insurance complaints from private passenger auto complaints.
Consider Digital Tools
If having specific features like a mobile app displaying your insurance card or an online claims portal is important to you, research which companies offer these functionalities. Explore the available tools from each insurer and review mobile app ratings on platforms like the App Store and Google Play Store.
Strategies for Cutting Expenses on Motorcycle Insurance
Choose a Higher Deductible: Opting for a higher deductible will lower your motorcycle insurance premium as you’ll be responsible for paying more out-of-pocket if you file a claim.
Consider Liability-Only Coverage: You can save money by choosing liability-only coverage, but it’s advisable only if the annual premium for full coverage exceeds the value of your motorcycle. Without comprehensive and collision coverage, you’ll be financially responsible if your bike is stolen or damaged in an accident you cause.
Bundle Policies: Many insurers offer significant discounts for bundling multiple policies, so consider combining your motorcycle insurance with your auto or homeowners insurance to save money.
Complete a Safety Course: Taking a recognized safety course, such as the Motorcycle Safety Foundation’s MSF Basic RiderCourse, may qualify you for a premium discount with certain insurers.
Compare Quotes: Insurance companies assess risk differently, so obtaining quotes from multiple insurers ensures you find the most competitive premium for the same coverage. Collect several motorcycle insurance quotes to secure the best price.
Inquire About Additional Discounts: Explore potential discounts such as payment incentives, association affiliations, and safe driver rewards to further reduce your insurance costs. Consult your insurance agent to learn about available discounts in your area.
Leading Motorcycle Insurance Providers
The following are quotes provided by three different insurance companies for a 35-year-old male driver residing in Los Angeles, who owns a 2020 Honda CMX500 Rebel and has a clean driving record. These quotes represent the annual premiums for a comprehensive insurance policy with a $500 deductible. The policy includes $25,000 coverage per person and $50,000 coverage per accident for bodily injury liability, $10,000 coverage for property damage liability, and $15,000 coverage per person and $30,000 coverage per accident for uninsured motorist liability.
It is important to note that certain reputable motorcycle insurance providers, such as Farmers and Safeco, require you to personally communicate with an agent in order to obtain a quote for motorcycle insurance.
Insurance Company Average Annual Premium
Progressive $697
Geico $1,088
Allstate $961
Guidelines for Submitting a Motorcycle Insurance Claim
There are multiple steps to take when filing motorcycle accident claims and seeking compensation for any injuries or property damage sustained in a motorcycle accident.
– Initially, contact 911 in case of a medical emergency (this should always be the first step).
– While still at the accident scene, gather the insurance company information of the other driver involved.
– The subsequent step involves reaching out to the police department and filing an accident report. This action will help prevent insurance companies from rejecting your claim by stating they were unaware of the accident.
– If the motorcycle incurred damage during the collision, you may need to have it repaired or replaced. Collision coverage might cover any property damage claims you need to file.
– Maintain a record of all documents related to your insurance claim, including correspondence from your insurance company or any medical bills. Additionally, keep any documents that could indicate your potential future medical expenses. These documents will assist in providing your insurance company with all the necessary information for processing your claim.
– Keep in mind that insurance companies are profit-driven entities, aiming to minimize their payout amounts. Consequently, insurance companies may attempt to reject your claim or offer less than what you are entitled to. It is crucial not to accept any offers from insurance companies without first seeking advice from a lawyer specializing in motorcycle accidents.
Please review your insurance policy to verify your coverage
Prior to submitting a claim for motorcycle insurance, it is crucial to assess your coverage. Are you equipped with comprehensive insurance coverage, or do you possess a basic liability policy? It is worth noting that not all insurance policies encompass accidents that transpire during motorcycle rides. It is imperative to familiarize yourself with the extent of your policy’s coverage to avoid any unforeseen complications in the future.
What type of motorcycle insurance claim must you submit?
The insurance claim process can be complex, so it is crucial to understand the specific type of insurance claim you need to submit.
The most common types of motorcycle insurance claims typically involve property damage and personal injuries.
Property damage claims usually arise from damage to your motorcycle, the other driver’s vehicle, or any other property involved in the accident. If you are at fault, you will file a claim with your own insurance provider. However, if the fault lies with someone else, you will need to file a claim with their insurance company, known as a third-party claim.
In case you sustained injuries in the accident and were not responsible, you can file a claim against the negligent driver’s insurance company. However, you must prove the other driver’s liability to receive compensation.
Compensation may cover current and future medical expenses, lost wages, and other damages like pain and suffering.
Dealing with insurance companies can be challenging, so seeking assistance from a knowledgeable attorney is essential to increase your chances of receiving fair compensation.
The Fran Haasch Law Group offers a team of experienced motorcycle accident attorneys ready to assist you. Contact us promptly to arrange a complimentary case evaluation.
An experienced motorcycle insurance attorney will ensure that your case is handled properly and that insurance companies do not exploit you during this challenging period.
Are you aware of your deductible?
Insurance companies take into account your deductible when discussing a settlement. Your deductible is the initial amount you must pay before your insurance coverage kicks in. It is important to know your deductible in order to incorporate it into negotiations with insurance companies.
What is the likelihood of my motorcycle insurance claim being authorized?
The approval of your motorcycle insurance claim relies on various factors, such as your place of residence and the insurance provider you are associated with. Hence, it is crucial to consult a proficient insurance attorney in order to gain a clearer understanding of the likelihood of your insurance claim being approved.
Is it possible for me to file a lawsuit against an insurance company if they reject my insurance claim for a motorcycle accident?
If you’ve sustained injuries in a motorcycle accident and suspect it resulted from someone else’s negligence, you might contemplate pursuing damages through legal action. Nevertheless, navigating this process can be intricate, thus consulting a seasoned motorcycle insurance lawyer is crucial. They can assist in assessing whether initiating a lawsuit aligns with your best interests.
An overview of the variances between motorcycle insurance and car insurance
An important distinction between motorcycle insurance and car insurance lies in the coverage provided. While car insurance often extends beyond the vehicle itself, encompassing liability coverage for damages caused to others, motorcycle insurance policies typically do not include such coverage. Therefore, it is crucial to secure sufficient liability coverage in the event of a motorcycle accident.
The ways in which a skilled lawyer specializing in motorcycle accidents can provide assistance
An insurance company might attempt to propose a settlement before you get the opportunity to consult with a lawyer. This situation can arise with either your own insurance provider or the at-fault driver’s insurance provider. It is advisable not to agree to any offer without seeking advice from a lawyer who specializes in motorcycle accidents.
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Keep in mind that insurance companies aim to minimize payouts when settling claims. Hence, having a lawyer represent you will increase your chances of receiving the compensation you rightfully deserve.
Conclusion
Motorcycle insurance is crucial for safeguarding against unforeseen expenses arising from accidents, theft, or damages. The regulations concerning insurance requirements and premium calculations differ from state to state. On average, individuals can anticipate a monthly payment of approximately $148 for their motorcycle insurance. However, it is important to note that these costs can significantly differ based on the location and the insurance provider.
Prior to embarking on your journey through the Golden State, it is crucial to obtain motorcycle insurance in California from reputable providers like Geico, Progressive, State Farm, Dairyland, and Safeco. Acquiring free insurance quotes from these top companies will not only ensure affordable rates but also help you select the most suitable coverage for your safety on the road.