Motorcycle Insurance Articles
How To Understand The Motorcycle Insurance Coverage You Pay For
2010-12-02
Motorcycle insurance is a must. In fact, most states require it by law. It is the biggest expense for owning a motorcycle besides the cost of the bike itself. In order for you to get the coverage you need for the best rate you should understand the coverage you are buying. There are several standard kinds of motorcycle insurance coverage.
Comprehensive coverage covers you if your motorcycle is stolen, vandalized or damaged by something like fire, basically most incidents except for an accident. If you hit an animal on your bike, this coverage applies. For this coverage, you decide on the deductible amount. Of course a lower deductible means higher premiums. If you have a loan on the bike comprehensive coverage will be required by your lender.
Collision coverage protects you if you are involved in an accident. The accident can be a collision with another vehicle, or an object like a tree. This coverage will pay for repairs, or, if the repairs are extensive, it might be considered totaled and you get proceeds to have the bike replaced. This motorcycle insurance coverage also has a deductible amount that you select based on the premiums you are willing to pay.
Liability insurance is the one required by most states, although the minimum coverage required probably wouldn't be enough if you were sued. You can increase the amount of liability in the policy with an additional premium.
Uninsured motorist is the coverage that you need if someone else causes an accident and has no insurance or not enough insurance. This coverage can pay for your medical bills and lost wages due to the accident.
Gap insurance is needed if the loan amount is more than the insurance value. Since most motorcycle policies only pay the depreciated value of the bike if something happens to it you could end up not getting enough to pay off your loan. Gap insurance will cover your entire remaining balance on the loan if the bike is stolen or totaled.
Custom Parts and Equipment Coverage is included in a comprehensive policy but only up to a certain dollar limit. You can buy more insurance in incremental amounts if you have electronic equipment, custom paint, trailers, and other accessories or add-ons. If you have lots of after-market extras on your motorcycle, this is coverage to check out.
Personal injury protection pays for medical and other expenses if you are injured while riding your bike including lost income, and funeral expenses. This coverage is not available from every insurer.
Looking for motorcycle insurance coverage can be overwhelming. Once you understand the basic kinds of policies you are paying for the choices are easier to make.