Do I Need Motorcycle Insurance?
What Does Motorcycle Insurance Cover?
Shanti
9/16/20263 min read
Do I Need Motorcycle Insurance?
If you recently purchased a motorcycle or are thinking about buying one, one of the first questions you may have is:
Does a motorcycle need insurance just like a car?
In most cases, yes. If you plan to ride your motorcycle on public streets and highways, you must follow the insurance requirements of the state where you live.
But motorcycle insurance is not just about complying with the law. An accident can damage your motorcycle, cause injuries to other people, or damage someone else’s property, potentially resulting in significant expenses.
What Does Motorcycle Insurance Cover?
Coverage depends on the policy you choose. Some common types of motorcycle insurance coverage include:
Liability Coverage
If you are found responsible for an accident, this coverage can help pay for bodily injuries or property damage you cause to others, up to the limits of your policy.
Collision Coverage
If your motorcycle is damaged in a collision with another vehicle or object, this coverage can help pay for repairs or replacement after your deductible applies.
Comprehensive Coverage
This coverage can help with certain types of damage that are not caused by a collision with another vehicle, such as theft, fire, vandalism, and certain weather related damage.
Uninsured/Underinsured Motorist Coverage
If the driver who causes an accident does not have insurance or does not have enough insurance to cover the damages, this coverage may help you, depending on your policy and state laws.
Do I Still Need Insurance If I Paid Cash for My Motorcycle?
Paying for your motorcycle in full does not necessarily eliminate your legal insurance requirements.
The main difference is that when you do not have a loan on the motorcycle, there is usually no lender requiring you to carry Comprehensive and Collision coverage.
In this situation, you can decide whether optional coverage makes sense based on the value of your motorcycle, the cost of insurance, and how much financial risk you are comfortable taking on yourself.
What If I Financed My Motorcycle?
If you financed your motorcycle, your lender may require you to carry Comprehensive and Collision coverage in addition to any coverage required by law.
The reason is simple. Until the loan is paid off, the lender has a financial interest in the motorcycle and wants to protect it in case of theft or significant damage.
Is the Minimum Required Insurance Enough? Not necessarily.
The minimum insurance required by your state is simply the minimum amount needed to comply with the law. In a serious accident, the cost of bodily injuries or property damage could be much higher than your Liability limits.
For this reason, when choosing motorcycle insurance, do not only ask:
“What is the minimum amount of insurance I need?”
A more important question may be:
“If a serious accident happens, how much financial protection is appropriate for me?”
What Factors Affect the Cost of Motorcycle Insurance?
Insurance rates are not the same for everyone. Factors such as the type and model of your motorcycle, where you live, your driving history, your age and riding experience, how often you use the motorcycle, your coverage limits, and your deductible can all affect your premium.
Even two motorcycles with similar values may have different insurance costs.
What Should I Do Before Buying Motorcycle Insurance?
Do not compare insurance quotes based only on the final price. First, make sure the coverage and Liability limits in each quote are comparable. A less expensive policy may provide less coverage or have a higher deductible.
At Lionyx Insurance, we can review available options from different insurance companies and help you better compare their prices, coverage, and deductibles.
Before you hit the road, make sure your motorcycle has the right coverage for your needs.
Coverage, terms, limitations, and insurance requirements may vary by state, insurance company, and policy.
This information is provided for general informational purposes only and is not a substitute for reviewing your policy terms or receiving advice regarding your specific situation.
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