Motorcycle Insurance Articles
State Mandated Minimum Insurance Coverage And Why Purchasing More For A Motorcycle Is A Good Idea
2010-05-11
When taking out motorcycle insurance, there are several important matters to consider. The most essential of these is what level of coverage to take out. While each state has their own minimum legal level, this is often not good enough when it comes to actually receiving a payout in case of accident or theft. The reason for this is that laws can take a long time to catch up to the reality of living in this day and age. This means that your motorcycle insurance policy must reflect the cost of living rather than just following the state's legal requirements. Fortunately, the insurance companies recognize this and can help you choose a plan.
When each state sets its minimum level of coverage, they usually attribute three numbers to this requirement. Let us say that your state set its level as 15/30/10. These figures represent the payout that the insurance company is obligated to give you in case of an accident. These specific numbers say that a maximum of $15,000 will be paid to cover bodily injury to each person with an upper limit of $30,000 per accident. The insurance company will also pay up to $10,000 to cover any property damage. These amounts are specified in every state's mandated insurance coverage. This can be located on the insurance commissioner's website for each state and anyone taking out a plan should be aware of these limits.
After finding out your state's minimum compulsory level of insurance, have a talk with your insurance provider to see whether this level is reasonable or not. In most cases, you will find that is it not as the cost of living has risen faster than the laws could be changed. In this case though, do not worry. The insurance companies in each state realize the discrepancies between the state limits and the overall costs of repairs and hospitalization and have adjusted their motorcycle insurance policy options accordingly. While you can still take out coverage at the state limits, it is recommended that you follow the insurance providers' guidelines instead as they will provide you with much better protection.
Purchasing more than the required legal amount is especially important if you are a motorbike rider. With a higher risk of physical injury when on the road, having a wider safety net is a better idea. Adjust the three amounts mentioned enough to fit with your requirements. For example, if you never carry a passenger, a plan offering you 40/40/20 might suit you. Those with expensive motorcycles will need something different however, as their vehicle might require repairs costing more than $20,000. In any case, staying above the state mandated insurance coverage is a good idea.