BIKE INSURANCE: Basic Information

Choosing the right insurance policy is much like choosing the right bike. You want it to fit your lifestyle and needs, but at the same time be within your budget. Although most states require you to carry a minimum amount of liability coverage, other types of coverage are usually optional. One must be well aware of insurance laws of their state and area.

The key to finding which coverage is best for you involves learning about all the options available.

a. Collision coverage:


Collision insurance covers damage to your motor bike if you met with an accident. Your insurance company pays for damages minus your deductible, caused when you collide with another vehicle or object. Collision insurance usually covers the book value of the bike before the loss occurred.

b. Liability coverage:


Liability insurance covers bodily injury and property damage that you may cause to other people involved in an accident. It does not cover you or your motorcycle. Find out if your coverage includes Guest Passenger Liability, which provides protection in case if a passenger is injured on the motor-bike. Whether it is included or not totally depends on the company issuing the policy and the laws of your state.

c. Uninsured motorist coverage:


Uninsured motorist coverage pays for lost wages, medical treatment and other damages if a non-insured driver hits you. If your uninsured motorist coverage also includes property damage then your motorcycle would also be covered under the same insurance policy. One should verify if property damage is included or needs to be purchased separately from the insurance provider.

d. Comprehensive coverage:


Comprehensive insurance covers the damages caused by an event other than a collision, such as fire, theft or vandalism. However, just like collision coverage, your insurance company will pay for damages minus your deductible and cover only the book value of the motor-bike.

Keep in mind that most collision and comprehensive coverages will only cover the factory standard parts on your bike. If you decide to add on any additional optional accessories such as a custom paint job, chrome parts, trailers or sidecars etc. you need to look into obtaining additional equipment coverage.

e. Underinsured Motorist Coverage:


This coverage is similar to uninsured motorist coverage except it applies when the other party has lower coverage limits than you do and damages exceed the limits of other party.

f. Tips for the cost-conscious rider:


There are many factors which can play a vital role in determining the cost of your insurance such as your driving record, your age, type of motorcycle you own and where you live or being a graduate of a rider-training course.

* Many insurance companies offer discount from 10 to 15 percent on bike insurance for graduates of training courses, such as the Motorcycle Safety Foundation (MSF) rider course. Riders under the age of 25 are usually considered at higher risk, may see some savings by taking this course. It's also a very good idea for motorcyclists who have already had accidents.

* Get a detailed knowledge of all discounts that your insurance representative offers. Organization discounts, multi-bike discounts for those insuring more than one bike if you're a member of a motorcycle association, and mature rider discounts for experienced riders etc. are some to the possible available discounts. Discounts can range anywhere from 10 percent to 20 percent depending on the insurance company and your state. Availability and qualifications for discounts is also variable and vary from state to state and company to company.

* Keep in mind that the style (such as a cruiser vs. a sports bike), type and age of the motorcycle, as well as the number of miles you drive a year and where you store your bike may also affect the amount of payment for your premium.

* Maintaining a good driving record with no violations can also help you to reduce your premiums.

* Choose the agent or insurance company that best fits to you. If you already have car insurance, you can contact the same insurer. Otherwise, enquirer in your surrounding that is from friends, co-workers and relatives where they bought their car or motorcycle insurance. Your local motorcycle agency may also have a insurance company they refer customers to. Also check local motorcycle newspapers or magazines for insurance professionals advertising motorcycle insurance.