When purchasing motorcycle insurance for your bike's you should know:
- The types of coverage available
- Limits of coverage available
- Deductibles
- Other options available
Motorcycles have special equipment that is not automatically covered by all motorcycle policies. Motorcycles with custom paint, chroming, or non-factory equipment, such as show bikes or "choppers", must be insured by motorcycle specialty insurers like us, who accept these risks. Because motorcycles are easy targets for theft and are easily "totaled" in accidents, coverage should be carefully purchased to insure your interest.
A brief description of coverages generally available for Motorcycles offered by Auto Insurance America
BODILY INJURY LIABILITY
If you are partially or totally at fault for an motorcycle accident, this coverage pays for bodily injury to others, including guest passengers riding on your bike, providing you purchased guest passenger coverage. Damages you may be responsible for include medical bills, lost wages, replacement services, loss of life, permanent disability or impairment, pain and suffering, legal expenses, and other expenses allowable by law.
In some states with mandatory liability laws, guest passenger coverage is automatically included in your bodily injury liability coverage. In other states, guest passenger coverage must be purchased separately at an additional premium. If a motorcycle is involved in an accident with an automobile, it’s far more likely that the motorcycle rider(s) will be injured rather than the automobile occupants. Check with your agent on any coverage questions.
Be aware that you can be sued and held personally responsible for damages above the liability limits of minimum limits insurance policies, so if you own a home or property or have assets to protect, you would be wise to purchase higher limits of bodily injury liability insurance coverage rather than having to file bankruptcy or paying off large legal judgments for years.
Motorcycle liability insurance is generally inexpensive if the bike is used strictly for recreational use. Generally, motorcycle liability insurance premiums are based on the number of CCs of your bike, the higher the CCs, the higher the premiums. Certain approved "tour bikes" may qualify for lower premiums, depending on the age and driving record of the operator. Check with your agent before you buy your bike.
Regardless of whether your state has a mandatory helmet law, you and your passenger should always wear helmets to avoid severe head injuries which cause death or permanent impairment. Helmets may be inconvenient but they definitely save lives and reduce serious injuries.
PROPERTY DAMAGE LIABILITY
If you are partially or totally at fault in an cycle accident, this coverage pays for property damage to others, including but not limited to use of a rental cars while their vehicle is out of service, loss of business income if related to the accident, and damage to property other than vehicles.
Minimum liability limits may be inadequate to pay for damage to an expensive vehicle or other property damage. You can be sued and be held personally responsible for property damage above the limits of your policy, so if you own a home or property or have assets to protect, you would be wise to purchase higher than minimum property damage liability limits rather than having to file bankruptcy or paying off large legal judgments for years. Motorcycle liability insurance is generally inexpensive, so it is recommended that you purchase higher than minimum limits.
PHYSICAL DAMAGE COVERAGE
This coverage is commonly known by several names - comprehensive, collision, motorcycle damage, physical damage - and these coverages repair or replace your bike in the event of loss by fire, theft, windstorm damage, flood damage, collision with another object, or many other events that could ruin your day. Because motorcycles have substantial optional equipment, coverage should be purchased carefully from a motorcycle specialty insurer.
Physical Damage Coverage is generally sold with a choice of deductibles. Deductibles are dollar amounts that you agree to pay for each loss, before your insurance "kicks in," so you are "self insuring" and will pay "out of pocket" for damages below your deductible. You can’t save up all the dings and other damage to your bike and get them repaired under one deductible. Insurers offer a variety of deductibles. Because you are "self insuring" and paying, "out of pocket," all amounts below your deductible, you can save substantial dollars in your insurance premiums by selecting higher deductibles. If your bike is financed or leased, the loan or leasing organization usually limits the deductibles they will accept (see your contract).
If you have a late model motorcycle or your cycle is financed or leased, you will likely need physical damage coverage to repair or replace your bike in the event of loss. You can save premium dollars by purchasing a higher deductible on your policy, but remember, if your bike gets stolen or damaged, you will have to pay the amount of the deductible you choose, so don’t choose deductibles so high that you will wind up in a "financial pinch," even though you have insurance.
Under the physical damage exclusions of most motorcycle policies, only a standard basic factory equipped motorcycle is covered excluding special equipment. Special equipment includes but is not limited to fairings, sissy bars, luggage racks, saddle bags, stereos and sound equipment, and all non-factory items not installed by the manufacturer of the motorcycle and delivered with the bike.
Most motorcycle insurers charge additional premiums for Special Equipment, so if you want these items covered in the event of loss you must do so before the loss, the best time being when you apply for motorcycle insurance or when you acquire Special Equipment. It is your duty to declare these items to your agent and pay the proper premium in order for coverage to apply for these items. Be sure these items are listed on your application for insurance or added to your existing policy if you want them covered.
Most insurers will require physical inspection of your motorcycle prior to binding coverage. That inspection protects the interest of honest people and speeds up the claims process in the event of loss soon after purchasing motorcycle insurance.
Motorcycles should be stored inside a locked garage when not in use, wherever possible. Lock and chain your bike to a stationery object whenever unattended. Motorcycles are regularly stolen, picked up and tossed into a van, and sold across the border, so take all precautions to protect your bike.
MEDICAL PAYMENTS COVERAGE
This coverage covers you and your passenger for medical expenses incurred in a motorcycle accident, regardless of who is at fault.
Because of the personal injury exposure involved in riding motorcycles, Medical Payments insurance is very expensive and usually available in very limited amounts. If you have good health insurance coverage for your family, you may decide to purchase a limited amount or none of this coverage. Although you don’t know what type of medical insurance, if any, a guest passenger may have, when guest passenger coverage is included in your bodily injury liability coverage, that coverage pays for medical bills of a guest passsenger, up to the limits of coverage you purchased, if you are legally responsible for an accident. Some insurers offer special consideration, such as waiving deductibles for Medical Payments coverage, if the injured person was wearing a helmet. Remember, motorcycle riders should always wear helmets.
UNINSURED/UNDERINSURED MOTORIST COVERAGES
This coverage covers you, and passengers riding your motorcycle for injuries as a result of an accident where the other party is at fault but has no insurance or inadequate insurance to pay for all damages. Covered persons collect from your insurer for the damages they are legally entitled to, above and beyond the limits of the other party’s insurance, if any.
In most states, uninsured/underinsured motorist coverage does not pay for damage to your motorcycle. You must purchase physical damage coverage to pay for damage to your bike.
In New Mexico, uninsured motorist property damage coverage is available to protect damage to your property caused by an uninsured motorist. Check with your agent for coverage and premium rates.
Statistics show that in 78% of all motorcycle/auto accidents, the driver of the auto is at fault. Reason is simply that motorcycles are difficult to see. Obviously, since this coverage pays for injuries caused by an uninsured or underinsured motorist, and it’s far more likely that the motorcycle rider(s) will be injured, premium rates are quite high for this coverage. You can purchase limits of this coverage, up to the limits of the bodily injury liability coverage of your policy. Most state laws make this coverage mandatory, unless you sign a specific rejection. Injuries from an accident can cost thousands of dollars. Auto Insurance America recommends that you purchase this important coverage.
INSURANCE POLICY EXCLUSIONS
Insurance policies don’t cover all situations. There is no such thing as "full coverage." Policy exclusions exist in all insurance policies and they eliminate or restrict coverage. Read your policy carefully and if you have any questions, check with your agent. Because insurance policies vary between insurers, your agent will be most familiar with your policy.
A WORD OF CAUTION ABOUT OPERATING MOTORCYCLES
Motorcycles can provide family recreation but only if cyclists take every precaution in proper training, proper equipment, and absolute defensive operation of motorcycles. Always keep your headlight on, always wear helmets, always be super defensive, particularly in city driving where motorcycles are difficult to see in traffic. Never weave in and out of traffic or between traffic lanes. Several safety training courses are offered by motorcycle associations and law enforcement.
Parents should mandate that their children take an approved motorcycle safety training course before allowing them to operate a motorcycle.