Motorcycle Insurance Articles
Crossing State Lines And How Motorcycle Insurance Is Affected
2010-09-03
Motorcycle insurance quotes can be some of the most expensive vehicular insurance propositions on the market. Due to the speed culture that exists around motorbikes, combined with the simple fact that being thrown from a bike typically results in far greater injuries to a rider, insurance companies have taken steps to protect themselves and their investments. As a result, they have increased the premium price of motorcycle insurance accordingly. This can be frustrating for safe, sensible riders who simply want to get their bike out of the garage and back on the road. For many, there is a temptation to take the first reasonable quote they find online, in the hopes that an out of state provider can offer a better deal than those that are located close to home. Riders would be wise to be wary; however, as when insurance crosses state lines, it is bound to operate by the laws of that state.
Simply put, insurance companies must abide by the insurance regulations laid out by the state they are doing business in. Most states have an insurance commission or board that regulates not only how companies can do business and what must be covered by insurance-personal injury, property damage, etc. But in some cases, what companies are allowed to charge customers. Any business selling insurance in that state- be it in person or online-must adhere to state regulations. Often, insurance companies will operate in a large, populous state and cross state lines electronically to offer motorcycle insurance quotes in a new location. No matter the laws in the "home state" of the insurance company, they must act in accordance with the laws of the state they are selling in. While states do try to pursue companies that do not abide by the rules, the ultimate responsibility lies with the driver. If you are caught with motorcycle insurance that does not meet the minimum standards, you will be fined or may have your license revoked. You must be sure to learn what your state requires before buying insurance.
It is also worth knowing that should you drive into another state under your current coverage, you will typically be covered as a visitor. Should you choose to move there, however, you will be required to ensure that your policy is viable under your new state's laws. Failure to do so could again result in legal ramifications.
While insurance for motorcycles can be expensive, and cheap online deals can seem like a great way to save money, be sure to check out any deal to ensure that it is compliant with your local state insurance regulations and that it provides sufficient coverage.