Recommended Motorcycle Insurance Coverages
Each state in the U.S. has its own insurance regulations, so coverage that is adequate in one location may be inadequate in another. Additionally, recommendations regarding insurance coverage for motorcycles can vary depending on the value of the motorcycle, your net worth and your need to protect assets, as well as the seasons, common road conditions and traffic circumstances in which you ride.
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Bodily Injury and Property Damage Liability
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This liability insurance covers you up to the limits of the coverage if you are at fault for an accident and another person is injured or the accident causes damage to another person's property. Some states require a minimal amount of coverage such as $15,000 per person and $30,000 per accident. A common higher limit for bodily injury is $250,000 per person with a maximum of $500,000 for each accident and $25,000 in property damage limits for each accident.
Comprehensive and Collision
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These types of motorcycle insurance pay toward the repair or replacement of your motorcycle if it is damaged in an accident or it is stolen. For each type of coverage, you choose a deductible amount that you agree to pay in the event of a claim. The insurance company pays for the remaining amount to repair or replace the motorcycle within the terms of the policy and up to its limits. A common method is to insure the motorcycle equal to its value. With some valuation methods, the insurance company will factor in the motorcycle's depreciation over time, so it is important to understand how the insurer will determine value in the event of an accident. If the motorcycle has custom parts, you can include insurance for those custom parts when you initiate the insurance.
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Under-insured and Uninsured Motorist
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In the event of an accident, the person who is at fault may either have insufficient insurance or no insurance at all. This type of insurance is designed to cover your injuries and damages even though you are not at fault and the person at fault is legally liable for the damages. The way states regulate this type of liability varies. In the event of a motorcycle accident, damages to you and your property can be high. One approach to under-insured and uninsured motorist coverage is to purchase as much as you can afford.
Medical Payments
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Medical payment insurance covers the expense of necessary medical care that you receive as a result of a covered motorcycle accident. These payments are made available without regard to who was at fault. One common limitation of medical payment insurance is that it may be limited by a time period, such as during the three years after a covered accident took place. It is also usually limited to a dollar amount, such as $25,000. In some states, the coverage applies only when all other medical insurance coverage is exhausted.
Roadside Assistance
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Also known as towing coverage or trip interruption coverage, this type of insurance often includes minor roadside repairs such as a flat and towing, usually to the nearest qualified or approved repair facility. It may also send help to pull a motorcycle out of mud or snow.
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References
- Photo Credit custom bikes image by jedphoto from Fotolia.com
