How does motorcycle insurance work?
Motorcycle insurance, like auto insurance, protects you from financial responsibility if you cause an accident while riding your motorcycle, as well as paying for damage to your motorcycle.
Most states in the United States require drivers to have a certain amount of car insurance, but did you know that the same laws apply to motorcycles? Your state can require you to have some level of liability coverage, similar to car insurance, so you're protected if you cause an accident while riding your bike.
Motorcycle insurance is similar to car insurance in several ways: A motorcycle insurance policy may provide a variety of coverage options that include various levels of safety. Healthy motorcycle insurance, like car insurance, will cover the costs of causing an accident as well as the costs of damage to your own vehicle.
Most major automobile insurance companies also offer motorcycle insurance, and if you already have a car insurance policy, bundling your motorcycle and auto insurance will save you money. Motorcycle insurance is also offered by a few smaller insurance companies.
Motorcycle insurance vs. car insurance
Although car and motorcycle insurance have several similarities, motorcycles have a few main differences that will affect your insurance needs.
When comparing motorcycle insurance and car insurance, the following are some of the distinctions to consider:
- Since you're more likely to have passengers in an auto, car insurance usually covers them as well. Motorcycle insurance usually includes guest passenger liability insurance as a different form of coverage, as you'll see below.
- On a motorcycle, you're more likely to get hurt. A motorcycle policy's personal injury insurance could be more costly than a car policy.
- If your motorcycle has attachments such as saddlebags or a backrest, you can need extra shielding to protect them in the event of a crash (this coverage can also include your helmet).
Aside from this, though, motorcycle and automobile insurance are very close. Both cover your car in the event it is stolen or destroyed, as well as medical and insurance costs if you, a passenger, or another person is injured in an accident. Motorcycle insurance, like car insurance, is required in most states.
What does motorcycle insurance cover?
A motorcycle insurance policy, as previously said, is made up of various forms of coverage. And, like automobile insurance, motorcycle insurance covers some of the same major coverage categories, such as:
- Liability insurance: Covers the costs if you cause an accident, damage property or injure someone else while on your bike
- Personal injury protection (PIP): If you’re worried about wiping out, you may want to increase PIP coverage, which covers medical expenses, lost wages, and related damages that you cause to yourself or people riding with you
- Comprehensive insurance: Covers damage to your motorcycle not caused while riding, like damage from vandalism, theft or fire
- Collision insurance: Covers damage from a collision with another vehicle or object, no matter who was at fault
- Uninsured/underinsured motorist coverage: Covers you if you’re in an accident caused by a driver or biker without insurance, or whose insurance can’t cover the full cost of the damage
Then there are coverages that are unique to motorcycle insurance, including:
- Guest passenger liability insurance: A part of motorcycle insurance that works like PIP, to cover medical payments for people who were injured while riding on your motorcycle with you
- Accessories or added equipment coverage: Works in addition to comp coverage, and covers the costs if your bike add-ons and accessories are damaged in an accident, including things like seats, radios and helmets
- Personal item or “carried contents” coverage: Covers damage to or theft of items or gear that you’re carrying on your bike, including camping equipment or cellphones
- Original equipment manufacturer (OEM) parts coverage: Guarantees that covered repairs to your bike will use original manufacturer parts
How much motorcycle insurance should I get?
Take note of how much motorcycle insurance is necessary in your state before deciding how much you can get — your state's DMV or similar department will be able to tell you the requirements.
Most states require you to have a certain amount of liability insurance before you can legally ride your bike. However, as with auto insurance, the minimum required amount of liability insurance might not be enough to adequately cover the cost of repairs and medical costs if you cause an accident, so consider increasing the coverage amounts beyond the legal minimums.
You should also consider all of the protective equipment you'll need to repair in the event of an accident, such as your helmet and the motorcycle jacket that protects you from road rash. Accessories such as saddlebags, radios, and seats can be covered as well, but only if you want to include those coverages.
Motorcycle insurance, like automobile insurance, can be improved by incorporating endorsements, which are optional policy clauses that can boost the premiums. Original equipment manufacturer (OEM) coverage is a common motorcycle insurance add-on that can cost more but allows any repair shop hired by the insurance provider to use official replacement parts while repairing the bike.
Who sells motorcycle insurance?
Motorcycle insurance is available from most automobile insurance firms. That means you can get coverage from well-known companies like:
- Geico
- Safeco
- Progressive
- USAA
- Allstate
Motorcycle insurance from companies like Markel and Dairyland, which are relatively smaller, may also be a good option. Many major insurance providers often offer multi-policy discounts, so if you already have an auto insurance (or home insurance, or renters insurance) policy with them, you may be able to save money on either or both by buying your motorcycle insurance from them as well. An impartial broker will assist you in comparing quotes from various insurance providers and selecting the right policy for your needs.
What is the average cost of motorcycle insurance?
Motorcycle insurance costs vary greatly, much like car insurance, depending on a variety of factors such as where you live, how old you are, and how safe (or not) your driving record is. However, the model of motorcycle you ride can have a significant impact on your annual premiums, which can vary from a few hundred dollars to well over $1,000.
Insurance is normally much more costly for more expensive motorcycles, such as those with bigger engines and more expensive builds. You will not have enough money left over to pay your motorcycle insurance premiums if you spend all of your money on the bike. Decide if you want a normal motorcycle or a sport bike before you go out and buy one. The monthly premium gap may be hundreds of dollars.
Smaller engines have lower insurance premiums, and larger engines have higher premiums. (Motorcycle engines are classified according to their capacity.) A 300cc engine can achieve just a fraction of the speed of a 1,500cc engine.) If your bike is made for endurance rather than horsepower, you'll probably get a lower cost.
Your insurance premiums are primarily dictated by the amount of coverage you need — the more coverage you purchase, the higher your premiums will be. However, as previously mentioned, your personal information will play a significant role.
Younger drivers will pay more for auto insurance because they are perceived as riskier and less experienced. Do you live in an area with a high crime rate or a heavily populated area? Since there's a higher chance of robbery or accidents, you'll pay more. Riders with a bad driving record would pay far more than those with a clean record.
How can I lower my motorcycle insurance cost?
If you combine your motorcycle insurance with your existing automobile insurance, you will be able to save some money on your premiums. When you bundle insurance premiums, carriers also encourage you to pay a single premium, which is the sum you would pay out of pocket before the insurance provider pays the remainder, potentially saving you even more money when you make a claim. This feature might not be available from all insurance companies, so check with yours.
Some carriers will give you a small discount if you transfer your motorcycle insurance to them. Discounts for taking a motorcycle safety course, for example, may be eligible. You might be eligible for discounts if you pay your premium in full and up front, rather than monthly, or if you move to automatic bill pay, as you can for car insurance.
And, much as with auto insurance, the safest way to make sure you're having a decent offer on motorcycle insurance is to browse around and compare quotes from a few different companies before deciding on a policy.
Does motorcycle insurance cover mopeds and scooters?
You may not only get insurance for your moped or scooter, but you might be forced to do so in certain states, depending on the size of the vehicle's engine. Since these vehicles are lighter and normally travel at slower speeds, you might be able to get away with purchasing less coverage than you would for a car.
Some insurance providers cover mopeds and scooters as part of a motorcycle policy, while others sell separate policies for motorcycles and scooters, as well as off-road vehicles such as ATVs.