What Is Motorbike Insurance?
Motorbike insurance finances repair and medical bills in case of an accident or theft. It also covers the expenses of other people involved in an accident. The law requires motorcycle insurance.
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Why You Need Insurance
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Most states require vehicle insurance by law to make sure an insured person can pay for the injury or damage he is responsible for causing. In addition, insurance provides personal protection against lawsuits. Lack of riding skill, speeding, bad weather, driving drunk, lack of defensive driving skill, lack of awareness of other drivers to a small vehicle in their proximity and inexperienced riding with passengers on the back commonly cause accidents.
How is Motorbike Insurance Provided?
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Motorbike insurance policies are contracts for insurance coverage that you can obtain from insurance companies. The policies will vary in price and coverage depending on what the company is willing to offer and what you are interested in protecting. The policies are usually good for a year and then need to be renewed.
The policy is renewed with the same terms, but sometimes insurers will make changes such has raising the premium cost due to accidents or traffic tickets. Changes can also include agreement terminology. Premiums can also go up due to vehicle changes or an increased number of claims. Insurers reserve the right to drop a client if there are too many claims and accidents, which indicate high risk to the insurer.
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What is Provided in Coverage?
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Not every vehicle insurer is automatically willing to cover motorbikes. Those that do usually provide policies for name brand motorcycles, scooters, and two or multiple-wheeled bikes such as quads and ATVs when used on official roads. Off-road coverage is not very common or comes at a much higher cost due to risk.
Basic insurance polices are comprised of liability, collision and comprehensive.
Bodily Injury and Property Damage Liability pays for accidental injury to another person or damage to his property. Comprehensive and Collision insurance covers repair or replacement of your motorcycle from theft or accident, irrespective of fault.
Collision coverage pays for damage if you hit another vehicle or object.Comprehensive coverage pays for damage caused by an accident other than a collision, such as fire, theft or vandalism.
How do I Buy a Policy?
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A buyer can usually obtain a motorbike insurance policy one of two ways. Either he can contact a licensed agent who offers policies in the name of an insurance brand, or he can contact the insurer directly. Most large insurers have websites that can handle applications and sign on clients electronically. However, contact is entirely with the insurer directly and you must work with them through phone and email.
Agents usually work out of street offices, which affords clients a face-to-face relationship with an insurer via the agent. Agents exist in their own right as a business licensed to sell insurance products. An agent can offer you different insurance products from different providers rather than just one and assist you in filing and following up with claims.
Will the Policy Cover Special Improvements?
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Insurance companies differ on customization of motorbikes. Some won't cover these parts at all or motorbikes modified by them. Others will want independent party appraisals on value or will restrict coverage to allowable activities under road and highway laws. A buyer needs to work individually with his insurer or his agent to understand what can be covered by a policy. Typical modifications that fall under this category include side-cars, improved exhaust systems and customized frames.
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References
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- Photo Credit motorcycle image by Goran Bogicevic from Fotolia.com
