Motorcycle insurance that protects your bike

Collision coverage

Given the term, this coverage will seem to be self-evident. Collision coverage protects the bike in the event of a collision or upset, regardless of who is at fault or whether the other party has insurance. There are a few cases that you might believe are protected by collision insurance, but they aren't. For example, if you hit a deer with your motorcycle, collision coverage is not available, but our next coverage is.

Comprehensive coverage

Comprehensive coverage protects you from losses that aren't caused by a crash. Theft, flood, arson, vandalism, and (as we already saw) hitting a deer are some examples of these losses. If someone steals your motorcycle, you can be the best rider in the world with no collision-related losses and still have to make a substantial lawsuit.

Uninsured motorist property damage/underinsured motorist property damage

If you are in an accident with someone who does not have insurance (uninsured motorist) or does not have enough insurance (underinsured motorist), this policy will help make up the difference. Uninsured motorist property damage/underinsured motorist property damage coverages differ the most from state to state, so check with your insurance provider to see what's available in your area. Since collision coverage offers a similar advantage, many states do not allow you to carry this coverage if you have collision coverage. Uninsured motorist property damage/underinsured motorist property damage policy can be an option if you're just concerned with damage caused by others.

Forms of settlements

If you want comprehensive or collision coverage, you must also decide about the form of settlement, or how the value of your motorcycle will be calculated, in the event that you need to file a lawsuit. In certain cases, the age of your motorcycle or other factors relevant to it would decide your settlement options. Your motorcycle could be eligible for one of three forms of settlements:

Actual cash value: This is the most common settlement type. Depreciation and the market value of your bike will be taken into account at the time of the loss when determining what your payment will be following a claim.

Replacement cost: This settlement type is for newer bikes, usually up to three model years old. With this settlement type, in the event of a total loss, your bike will be replaced with a comparable bike—with no deduction for depreciation.

Agreed value: This form of settlement (also known as "stated value") is most commonly used for collector, vintage, custom, or heavily accessorized motorcycles. You and your insurance agent negotiate on the value of your motorcycle at the start of the contract period with agreed value settlement. Then, if you suffer a complete loss, you will be reimbursed for the agreed-upon sum.

Deductibles

The deductible is another important consideration when purchasing comprehensive and collision coverage. In the case of an injury, the deductible is the sum you pay out of pocket. Deductibles apply to comprehensive and collision coverages; uninsured motorist property damage and underinsured motorist property damage coverage may or may not, depending on your state's criteria.

The best way to figure out what your deductible should be is to consider your level of risk tolerance. Are you willing to pay a higher deductible in the case of an accident in order to keep your premiums low? Do you want to pay a slightly higher annual fee in order to pay as little as possible in the event of an accident? These are decisions that only you can make, so be sure to consult with your insurance agent to determine which alternative is best for you.

Another factor to consider is whether the insurance plan provides a deductible that decreases over time. This is a fantastic bonus that recognizes your loyalty and good driving habits. Basically, if you stick with the same insurance provider for a year and don't have any losses, the premium would drop by a certain amount—often to $0! Then, if you have an injury, you would pay a lot less than you would if your insurance didn't include that bonus. Check to see if your new motorcycle insurance policy contains this deductible-decreasing option.

Hopefully, this review makes the decision-making process for insuring your motorcycle a little bit simpler. As we've previously said, the best way to get answers to your specific questions and ensure that you get the correct policy for your situation is to contact a specialist at your insurance provider or our customer support team at 800-236-2453.