Motorcycle Insurance

By: Steve Dimeck
These days simply being careful while out and about with your bike and
using safety gear is not the only protection you would need.
Motorcycles have a far higher rate of accidents per unit distance than
cars. This is due to the exposed rider and the fact that many
automobile drivers fail to see these smaller vehicles in the traffic
stream.

Also, as the law and lawsuit trials become more and more
"complicated," you might even end up paying for the guy who was talking
on his sell phone while driving, failed to see you and pushed you in
the ditch. Of course, he had a good lawyer. And you, ... well, your
brand new bike is bits and pieces, not to even mention being hurt from
the fall.

So, you either cough up few thousand dollars for the
medical bills and fixing your bike, or contact your insurance to take
care of the bill. Your motorcycle is a major investment, one that is
certainly worth protecting. Making a smart insurance decision is
crucial for your protection and protection of your motorcycle.

However,
choosing the right insurance policy for you is much more like choosing
the right bike. You want it to fit your lifestyle, but at the same time
you want it to fit your budget.

And, better coverage does not
necessarily mean paying more for your insurance. Based on your
motorcycle, driving history, and location, instead of getting the best
rate from one company, you'll need to contact more insurance companies
and get their best rates for your desired coverage. And the key to
finding which coverage is best for you involves learning about all of
the available options.

Although most U.S. states require you to
carry a minimum amount of liability coverage, other types of coverage
are usually optional. Always ask your insurance representative about
which laws apply in your state or city.

Let's look at the different insurance options.

Liability coverage

In
many countries liability insurance is a mandatory form of insurance
since you're at risk of being sued by the injured party being involved
in the accident. Most U.S. states require motorcyclists to carry a
minimum amount of liability in case of third party injuries. However,
insurance experts recommend purchasing as much as three times the
minimum in these times of expensive litigation. Liability coverage
protects you if you (or another person driving your motorcycle with
your permission) injure or kill someone or damage property. Liability
insurance covers bodily injury and property damage that you may cause
to other people involved in an accident, up to the limit of liability
you select. It doesn't cover you or your motorcycle. But it gives you a
protection from a lawsuit. Also, find out if your coverage includes
Guest Passenger Liability, which provides protection in the event that
a passenger is injured on the motorcycle. It depends on the laws of
your state and the company issuing the policy.

Collision coverage

While
the liability coverage is required by law, in many cases collision
coverage is optional. Why, you might ask? Collision coverage is the one
that pays for the damage to your motorcycle, and it's optional? We'll
let the lawmakers protect "the other guy" while you need a collision
coverage to pay for the damage to your motorcycle when you collide with
another vehicle or object. It covers the cost to repair or replace your
motorcycle, regardless of who is at fault. You select a deductible, and
once the deductible is met, the insurance company pays for the
remaining damage. Collision insurance usually covers the book value of
the motorcycle before the loss occurred - factory parts. If you get
fancy and add anything extra, like nifty chrome accessories or a custom
paint job, additional coverage will be required for compensation.

Comprehensive coverage

Comprehensive
coverage pays (less the deductible) for damages caused by circumstances
other than accident, such as vandalism, fire, or theft. And again, it
covers only the book value of the motorcycle.

Uninsured motorist coverage

If
the knucklehead who hit your bike is uninsured, this insurance will
cover damages you incur that the "at-fault" party is legally liable
for, such as medical treatment and lost wages. Despite laws requiring
insurance in practically every state, a lot of people are still driving
without even basic liability coverage. The uninsured motorist section
of your policy protects you if you or your passenger is hurt by "one of
those" people. If your uninsured motorist coverage includes property
damage, then your motorcycle would also be covered under the same
circumstances - covering for damage to your motorcycle caused by
someone who does not have insurance. Check with your insurance to see
if property damage is included or needs to be purchased separately.

Underinsured motorist coverage

Underinsured
motorist coverage is similar to the uninsured motorist coverage. This
coverage reimburses you if the person who hit you doesn't have enough
insurance to cover for all of your damages. If your injury expenses
exceed the "at-fault" person's liability limits, you can use
Underinsured Motorists Coverage to pay for the amount not covered by
the person's insurance. Underinsured Motorists coverage is designed to
cover the gap between the other person's liability limits and the
amount of your injury expenses. The trick is that in order for this
coverage to kick in, the other driver has to be declared at fault. In
most states, when blame is in doubt or the amount payable is contested,
you and your insurer have to submit your differences to arbitration.

Medical payments coverage

Medical
Payments coverage pays the cost of necessary medical care you receive
as a result of a motorcycle accident and can be used regardless of who
is at fault. This coverage often is limited. Check with your insurance
company for the specific dollar amount and the number of years that
they will cover after the accident. In some states, medical payments
coverage only applies after other medical insurance is exhausted.

Custom parts and equipment

This
coverage is an addition to your Comprehensive or Collision coverage.
When you have custom parts and equipment on your motorcycle, you can
purchase this additional coverage to cover equipment, up to a dollar
amount defined by the insurance company. Ask your insurance for the
specific custom parts and details that they are willing to cover.
Recommendation: retain photos of the motorcycle and all the receipts
for your custom parts and equipment.

Roadside assistance

Roadside
Assistance coverage provides towing to the nearest qualified repair
facility and necessary labor at the place of disablement when your
motorcycle is disabled due to reasons defined by the insurance company.
Roadside Assistance is sometimes included with your Comprehensive
coverage at no charge. Ask your insurance agent. If not, in most cases
the Roadside Assistance coverage can be purchased at a nominal fee.

Many
factors can play a role in determining what your insurance costs will
be, such as your age, your driving record, where you live, and the type
of motorcycle you own. Unless you're a "high risk" person, there are
ways to keep your costs down so you won't have to pay high rates. Many
insurance companies offer discounts from 10 to 15 percent on motorcycle
insurance for graduates of training courses.

In many northern
states, riders may save money by buying a "lay-up" policy. With a
lay-up policy, all coverage except comprehensive is suspended during
winter months.

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