The Basics of Motorcycle Insurance

Regardless of the number of times you take your motorcycle for a spin, you need to protect yourself by obtaining motorcycle insurance. Accidents happen, and they often happen unexpectedly. By taking out a motorcycle insurance policy, you protect yourself from the possible costs that may arise as a result of the accident.

Most likely, experienced riders may already be aware of the importance of acquiring motorcycle insurance. However, a little refresher never hurt anyone. If you have newly purchased your motorcycle, learning the basics of motorcycle insurance coverage is a must!

 

 

The Four Benefits of Obtaining Motorcycle Insurance

 

Medical payment, third party injury, total vehicle loss, and collision coverage are the four types of protections you receive when you apply for motorcycle insurance. Here, we have briefly explained each of the four benefits associated with motorcycle insurance:

 

1. Medical Payment Coverage – If you are involved in an accident, whether minor or major, you will have to pay for medical treatment. If you are unable to pay for medical treatment, file a claim with your insurance company so they can pay for your medical bills. If you have to stay in the hospital while you recover from your injuries, you can do in peace and with a relaxed mind, knowing your motorcycle insurance is paying your medical bills.
2. Third Party Injury Coverage – A motorcycle accident, involving another vehicle or a person, can result in injuries on both ends. Not only will you have to pay your own medical bills, but the other person’s too, if you are at fault. The amount of money you have to pay for another person’s medical treatment depends on the severity of their injuries. If you have motorcycle insurance, your insurance company will compensate you for the medical bills you pay for the third party.
3. Total Vehicle Loss Coverage – In the event your motorcycle sustains severe damage, resulting in total loss, your insurance company will compensate you by paying the costs for replacing your motorcycle. Total loss means when the cost of repairs surpasses the cost of replacement. Your insurance company will offer you the actual cash value of your new motorcycle or the amount it costs you to replace it.
4. Collision Coverage – If you are at fault of the accident, your insurance company will pay you for the cost of repairs. If collision coverage does not come part of your motorcycle insurance, you can ask your insurance company to add it.

 

If you have yet to apply for motorcycle insurance, you should not delay obtaining it any longer. By now, we have given you enough reason to get motorcycle insurance. Just have your personal details such as the address of your current residence, age, job, annual mileage, riding history such as any courses you have passed along with their dates, motorcycle details, and any additions to your motorcycle coverage you want to make in mind before you speak with your insurance company, just to streamline the process.

 

The Important Questions You Need to Ask

 

You need to ask your insurance company the following questions before you obtain motorcycle insurance:

 

Do They Offer Motorcycle Insurance Coverage for Sports Motorcycles, Classic Motorcycles, or Both?

 

Most likely, your insurance company will have more than one kind of motorcycle insurance coverage to offer you. Therefore, ask if they offer motorcycle coverage for sports motorcycles, classic motorcycles, or both. If you ride a classic motorcycle, ensure you obtain the right type of insurance coverage for it and the same goes for others who ride a sports motorcycle.

If you own two types of motorcycles, one classic and one sports, you need to obtain two separate insurance coverages or ask if they provide multi-bike insurance coverage to cover both motorcycles under the same policy.

 

What is the Average Cost of Replacing Your Motorcycle?

 

Find the replacement value of your motorcycle. This will help you determine the amount of motorcycle coverage you need to protect your motorcycle. You can ask your insurance company if they can increase your limits to protect your motorcycle. They may even customize your motorcycle insurance coverage, tailoring it to your needs and requirements. It is good to ask this question to your insurance company so you know what they can and can’t do.

 

Do They Use Cash Value or Replacement Value to Reimburse Motorcyclists?

 

Cash value refers to the market value minus the depreciation value whereas replacement value refers to the market value of your motorcycle. Whether you prefer cash value or replacement value depends on your personal preference. Which option would be in your best interest though?

Going with an insurance company that offers you replacement value. With cash value, the insurance company will provide you with a check that may be much less than you expected after totaling your motorcycle, hence not in your best interests.

 

Does Your Motorcycle Insurance Coverage Protect Riders Riding with You?

 

This is a question you must ask your insurance company, especially if you do not ride your motorcycle alone, but usually have another rider who rides with you. Most motorcycle insurance policies do not offer coverage to protect your riders and if they do, you might need to add to your coverage. If your rider has their own motorcycle coverage, it will cover them in the event they suffer from an injury while riding with you due to an accident.

 

Can You Add Riders to Your Motorcycle Insurance Coverage?

 

Most insurance companies do offer this option to their customers, but you should still ask just in case. If your insurance company does give you the option to extend your coverage to them, your insurance company will ask for their names as well as ask for their driving records.

The next step is to determine the amount they will pay you in the event you find yourself involved in an accident. Even though this rare, some insurance companies do not provide you with complete insurance coverage if you fail to state the name of the rider clearly.

If you are considering obtaining motorcycle insurance, keep these points and questions in mind.