Motorcycle Insurance Articles
How To Add Motorcycle Coverage To An Existing Car Insurance Policy
2010-12-21
Adding motorcycle coverage to an existing car insurance policy is sometimes the most economical option, especially if you have a good relationship with your existing vehicle insurance provider. Many insurance companies have a loyalty discount for customers who have been with the company for a specific amount of time. Others give discounts for having few or no claims. If your current car coverage has been satisfactory, adding the bike to the existing policy is as easy as contacting your agent and upgrading your contract.
Unfortunately, not all automobile insurance providers offer motorcycle coverage. Motorcycles are considered high-risk vehicles and they also attract a preponderance of the highest risk drivers, i.e., males under the age of 25. If you fall into this category and will be riding a big bike that you've financed through a loan your motorcycle coverage is going to be relatively high.
With a financed deal, the lender is going to require you to obtain and maintain full coverage on the bike, including comprehensive and collision both. They need to make sure that if you wreck the thing they'll get their money back. Because collision and comprehensive both involve the setting of an agreed-upon deductible amount, this gives you an opportunity to lower your premiums if you're willing to take on some of the risk personally.
The nice thing about a deductible amount is that it can be set at whatever you choose. Choosing a lower deductible, which can be lowered all the way to zero, will raise the premium rates. Choosing a higher deductible of a $1,000 or $2,000 will lower your rates considerably, however, any damage done to the vehicle will come out of your pocket, until the deductible amount is satisfied. Although a lender is going to require that you carry comprehensive and collision protection, they cannot dictate the deductible amount, which you can use to your advantage.
A car insurance policy is a customized document that can include or preclude any terms upon which the insurer and the insured agree. A $10,000 deductible can be implemented, if desired, which will lower premiums significantly. Of course, if the car is totaled and it's deemed your fault you'll be on the hook to the lender for the ten.
If your current car insurance carrier doesn't offer motorcycle coverage in their portfolio you'll have to find a new provider, at least for your motorcycle coverage. There are plenty of companies out there selling into a very competitive market. This might even be a good time for you to do some comparison-shopping for your car coverage too, especially if you've been with the same policy for years.