It is not just a car driver’s predicament to pick the right insurance. Weekend bikers and regular bikers too have to grapple with the challenge of choosing motorcycle insurance. There are bikers who buy the bike before researching and deciding on insurance options. These first-time owners are quite unaware of the fact that there are carriers that do not offer motorcycle insurance. Even those who do, offer it at very expensive rates, a lot higher than auto coverage. Hence, if you are investing in a bike for the first time, research the insurance options available. There are not many insurance companies out there that offer motorcycle insurance. Find out which ones do and decide on one that offers the best policy.
Motorcycle Insurance Coverage Basics
Motorcycle insurance rates are not the same with every company. Companies have varied rates and the coverage also varies, depending on the laws of the state. A basic motorcycle insurance policy would cover the following:
— Medical coverage for a portion of costs for injuries during accidents
— Liability coverage pertains to the costs for damages and injuries to others, but not to the owner of the motorcycle.
— Collision coverage is a portion of the insurance that pays for damages to your motorbike.
— Comprehensive coverage pays for losses incurred due to vandalism, theft, or natural occurrences, hit and run, as well as damage from hitting an animal.
— Uninsured and underinsured motorist coverage is the portion that pays for a personal injury and property damage when the person at fault doesn’t have sufficient insurance.
— Roadside assistance coverage pays for instances such as towing arrangements and certain repairs.
Motorcycle Liability Coverage
Motorcycle liability coverage is a portion of the motorcycle insurance that is regulated depending on the laws of the state. The liability coverage rates may be low. Yet, companies insist that coverage is set high enough, so it would include the loan taken to finance your motorcycle. As discussed, liability coverage varies from state to state. Most state regulations have laws that mandate liability coverage to begin at the low end. However, the choice of raising this protection is yours. You can decide based on your evaluation of what you stand to lose in case of a lawsuit.
Determining Factors in the Cost of a Policy
The cost of a policy is determined by various factors. When insurance companies charge you for a policy, they consider the following factors:
— Annual mileage that is expected from your bike. Usually, manufacturers specify the average mileage that can be expected from the motorcycle.
— The brand of the bike and its classification. It can be a sports bike, a cruiser, etc.
— Typically, show bikes, customized choppers, and some vintage models are charged higher rates than average mid-range cruisers.
— The owner’s driving record and age. Usually, the older you are, the cheaper your rates get.
— Engine size
— The region where the owner resides. People who reside in crime and accident-prone areas will have higher rates.
— The type of riding. The motorcycle can be used for leisure, sport, everyday transportation, etc.
— The rider’s job indicates where he drives or parks his bike. For example, if you have to keep the bike parked on a construction site, then your rate will be higher because of the increased risk of damage to the bike
Motorcycle Insurance Shopping Tips
When you are shopping for motorcycle insurance, ensure that the medical coverage you receive is adequate. When you go for lower policy rates, you have to be careful because they sometimes withhold information on this particular aspect.
Make sure there are no discrepancies with the replacement costs included in the policy. Sometimes, they are stated as depreciated value instead of full replacement value. In case of depreciated value, the insurance company pays only for the current worth of the bike; i.e., the cost of the bike at the time of accident, when totaled. Full replacement value provides coverage for the price of the new motorcycle. However, it comes at a higher premium.
Check if passengers are also covered by the liability portion of the insurance policy. It is not included or offered as an option by all insurance companies or in all states.
Finding Motorcycle Insurance
The most important aspect of motorcycle insurance is finding the right insurance for the motorcycle. First of all, gather information on local regulations for motorcycle insurance. Also, find out when you have to buy insurance. In certain states, you have to buy insurance before the dealer delivers the motorcycle to you. Some states, however, require you to do that only after the delivery.
Get in touch with the local motorcycle insurance agents and elicit detailed information on different policies that cover motorcycles and the riders. To get the right rate quote, call as many companies as possible. Look for insurance schemes online. Visit websites to get some useful information. Look for different policies and clauses that require safety gear, such as helmets, clothing, and shoes.