Tips to Consider when Buying Motorcycle Insurance
Posted on: 11Feb,2016
It goes without saying that just like auto insurance, motorcycle insurance premium rates vary from one insurer to the next. If you’re like most individuals, the recent economic recession has us all walking on eggs and watching our budgets under a microscope. In addition to saving money, you should also be concerned with having sufficient coverage. Since accidents involving motorcycles and other vehicles have a greater likelihood of being serious, not having sufficient coverage could cost you a lot more than money.
Motorcycle Insurance Basics
You’ve invested a great deal of money in your bike so why would you skimp on protecting it? More importantly, why would you skimp on protecting yourself when you are riding it. To illustrate how much motorcycle insurance premiums can vary, a commuter bike in the small to mid-sized range will cost in the neighborhood of $200 up to $1,000 or more per year for a high-horsepower model or sport racer. Obviously, those higher rates are attributed to a higher level of risk.
Whether you’re an everyday rider or a weekend cruiser, you’ll face the identical challenge of having too many companies to choose from when shopping for motorcycle insurance. It’s important to know that there are state-required coverage minimums just like there is with auto insurance. So be sure that you know yours. The 6 basic options that are commonly found in the average motorcycle insurance policy include:
• Collision – the portion that pays for the damages to your motorcycle
• Comprehensive coverage – helps to recoup losses from natural disasters, theft, and vandalism and damage resulting from an accident
• Liability – covers costs for damages and injuries to others, but not the policy owner
• Medical – pays a percentage of the costs resulting from injuries
• Roadside assistance – covers certain repairs and towing arrangements
• Uninsured/underinsured motorist coverage – if the person responsible for the accident is not insured or does not have a sufficient amount of coverage, this pays for any personal injuries and property damages
No matter what coverage you add to your auto insurance policy, you are going to want to determine your deductible (the amount you pay out-of-pocket before the insurer pays the repair costs) and your coverage limits (the dollar amount).
Helpful Tips for Saving Money
The first thing you need to remember when you are shopping for motorcycle insurance is that there is no one-size-fits-all approach where premium rates are concerned. In other words, there is no standard rate for a motorcycle insurance policy. Some of the primary factors that affect your premium rate include:
• credit score
• driving history
• geographic location
• how the bike is stored
• style of motorcycle
You want to tailor the coverages in your policy to the type of motorcycle you ride and how it is primarily ridden. Basically, you will need to choose between a more comprehensive plan and just simple liability coverage. You should also visit your state’s Department of Insurance and find out what the minimum legal coverage requirements are. There are those riders who are confident enough about their driving skills and only pay for the state required minimum liability coverage, although that is not recommended.
However, this will only cover bodily injury and property damage. However, it will not cover the cost of repairs to your motorcycle or if you have to replace it with a new one. Unlike not opting for collision and comprehensive coverage on an older, low-market value vehicle, not having this coverage on a motorcycle is a huge gamble. Remember, bodily injuries that a motorcycle rider incurs during an accident are typically much more severe than those of an individual driving a car, SUV, truck, or van.
Furthermore, when you are shopping for a motorcycle insurance policy, you want to make sure that you have sufficient medical coverage for the obvious reason. Individuals who go with cheaper coverage tend to overlook this. You should also be sure that your liability coverage protects anyone riding on your bike with you. This is not always an inclusion with liability coverage. You can easily start your search online in order to compile a list of 6 to 8 insurance companies to research. Be sure that you are comparing premium rates for the identical coverages and amounts with each insurer. It will make your decision a lot easier.