Motorcycle Insurance Articles
Knowing Motorcycle Insurance Costs Before Buying A Bike
2010-11-20
Buying a bike is a very exciting step, especially for a person who has never owned a motorcycle before. It is important to know all of the motorcycle insurance costs that you will potentially be dishing out before you finalize your decision. Many people rush out to purchase a motorcycle and then realize how expensive it actually is to insure.
First of all, liability insurance is mandatory in most states. This liability insurance will protect the driver against expenses or lawsuits that may crop up if they cause an accident. Liability will cover the cost of damages to another driver's motorcycle, vehicle, or personal property as well as injuries sustained by any other driver, passenger, or pedestrian.
You may want to consider purchasing additional medical insurance, called personal injury protection, or PIP, as well. This will cover such costs as medical and hospital expenses, loss of wages, child care expenses, or funeral expenses. This coverage will take effect no matter who is responsible for the accident.
Other optional coverages will cover physical damages to your motorcycle. Collision covers damages caused by a collision with another vehicle, object, or person. Comprehensive insurance covers damages or losses caused by fire, theft, or vandalism. Both collision and comprehensive coverages require the driver to pay a deductible if they file a claim. Once this deductible is paid, the insurance company will pay for their portion of the damages or loss. Typically, the higher the deductible, the lower the premium. Just keep in mind that if you choose a high deductible in order to lower your insurance rates, you must endure that you can afford this deductible should you need to file a claim.
Uninsured/underinsured motorist coverage protects a driver if they are involved in an accident with a motorist who carries no insurance or too little insurance to cover medical expenses or damages. A hit and run driver can also fit under this category as it cannot be proven whether or not the at-fault driver holds valid insurance. Without this coverage, you will be responsible for paying all medical bills and any repairs to your motorcycle. Not many people can afford to pay for such high costs out of pocket.
Remember, you should always factor motorcycle insurance costs in with your budget when you are buying a bike. Motorcycle premiums are determined by combining a variety of factors and no two people will pay the same for their insurance policy. As well, no two makes or models of motorcycles will be charged the same premium as well. Always shop around and compare different insurance policies before committing to the one that fits your needs.