Insurance agents and consumers commonly use the phrase "full coverage motorcycle insurance" to refer to state-required insurance coverage in combination with physical damage coverage. Insurance is regulated by states in the U.S. Motorcyclists, like drivers of automobiles, can only operate their vehicles on public roads or highways while carrying insurance.
Liability and Property Damage
Liability insurance is one of two kinds of insurance that provide coverage in the event that you cause damage in an accident. Liability insures against personal injury damages if you are found liable for causing injury to another person. Many states impose penalties for motorcyclists who ride uninsured. In certain states, cyclists can not purchase a motorcycle without liability insurance. Property damage is the other type of insurance that provides coverage if you are responsible for causing damage to property belonging to another person in an accident. Property damage coverage minimizes risk to your assets since it helps cover the cost of any damages you might cause.
With collision insurance, you are covered for damages to your motorcycle in an accident. It does not matter who is found to be responsible for the damage. Collision insurance usually includes a deductible amount, meaning that in the event of a collision where your motorcycle is damaged, you pay the deductible amount, and the insurance company pays the remaining repair costs up to the policy terms and limits.
Comprehensive insurance provides coverage against perils other than those covered under collision. As an example, fire, flood, theft and vandalism are usually covered under comprehensive insurance. Comprehensive, like collision, may be subject to a deductible charge.
Uninsured and Under-insured
When you carry uninsured and under-insured insurance coverage as part of a full coverage policy, you increase your coverage beyond the basics. If you are injured or your motorcycle is damaged in an accident involving a driver who either has no insurance or whose insurance is not sufficient to cover the damages, and that driver is shown to be responsible, you have coverage for your proven damages up to the limits of your policy.
Medical expenses can occur that are directly related to a motorcycle accident. Medical payments insurance coverage provides for payment of your medical expense resulting from an accident within the terms of and up to the limits of the coverage.
An umbrella policy could be considered “extra full” insurance. It can provide extra liability insurance to a very high limit. For motorcyclists with a high net worth, having very large liability limits, through an umbrella policy, can provide an extra measure of insurance protection.