Motorcycle Insurance 101

A roaring engine, fresh air, swift adventure, comradery (and easy parking) … there are plenty reasons to love your motorcycle. To help you enjoy your two-wheeled friend as safely as possible, we’re steering you toward the basics of proper Motorcycle Insurance.

What is Motorcycle Insurance?

Even the best riders experience accidents. Motorcycle Insurance is created to protect a variety of motor-vehicles, including motorcycles, dirt bikes, mopeds, scooters, ATVs, and more. At its core, Motorcycle Insurance helps cover your bike and/or equipment in case it’s stolen or damaged, and financially steps in if you harm another person and/or their property while riding.

Is Motorcycle Insurance the Same as Auto Insurance?

Perhaps one of the most pressing questions about Motorcycle Insurance is, does it differ from your standard auto policy? The short answer is, yes.

Like Auto Insurance, motorcycles need similar foundational liability and property coverages (you can find these coverages here), but there are key caveats standard auto policies do not address. As a result, motorcycles require special coverage that accounts for the following:

The Risk of Total Loss: Insurance is about offsetting risks. Motorcycles are often “totaled out” for relatively minor damage. This means that a much higher percentage of motorcycle accidents result in a total loss compared to auto accidents.

Special Parts Represent a Higher Value: Your policy should include coverage for any special parts on your motorcycle. Typically, these parts are a much higher percentage of the overall value on a motorcycle versus a car. For example, it’s not uncommon to have an exhaust pipe that costs 10% of the overall purchase price! Some carriers include $3,000 of coverage at no extra charge, while others charge for it in increments.

Payout Limits are Lower: If an accident occurs, the actual overall payout from your insurance carrier is likely to be lower than that of a car-on-car accident. Generally, this is because there simply is not a lot of damage you can do to the motorcycle or another vehicle. So if you cause an accident and need medical attention, your Motorcycle Insurance will typically not be enough to cover your costs. However, if someone injures you, their insurance should cover your expenses. It’s critical that your motorcycle policy provides extra coverage in case the person who hits you does not have insurance or is underinsured.

Does the Law Require Motorcycle Insurance?

Most states do require minimum amounts of Motorcycle Insurance. However, even if your state does not mandate coverage, it is still a very practical investment. For this reason, it’s crucial to utilize insurance experts to determine what is legally required in your home state, and the places you plan to explore on wheels.

How Much Does Motorcycle Insurance Cost?

Price boils down to risk. Insurance carriers will weigh how risky you and your specific bike are. However, there are many ways to save money, and typically your answer to the below questions will help insurers determine your premium:

• How many days a week do you ride?
• Are you commuting regularly or just riding occasionally?
• Are you a member of a motorcycle association?
• Have you had Safety Training?
• Do you have anti-lock brakes?
• Do you have any theft deterrent?
• How long is “riding season” in your state? (Typically there’s more risk exposure in places you can ride all year).

Ride safely!