Motorcycle Insurance FAQ’s
Q. What’s the law in the US regarding motorcycle insurance?
Each state requires minimum bodily injury and property damage liability limits to be purchased for motorcycles. The limits vary by states. So, check with your state department of motor vehicles or your agent. However, do remember that in today’s litigious society that the state’s requirement of liability limits may not be enough in the event you are sued. Legal & settlement costs may put your assets at risk if you do not have adequate coverage.
Q. What are surcharges?
Surcharges can be assessed by carriers for many situations. These include young riders, riders with little experience, credit challenged riders, riders with tickets or accidents or riders who have to purchase custom insurance.
Q. What about motorcycle insurance discounts?
Discounts, like surcharges can vary widely by carrier. However, discounts may be allowed for rider association membership, safe drivers, multi- policies with the same carrier, home ownership, anti-theft devices, marital status and riding experience.
Q. What are the coverages I need to consider for my motorcycle?
There are several. In addition to the mandatory property damage and bodily injury liability, you can consider:
- Collision
- Comprehensive
- Medical Payments
- Roadside Assistance
- Uninsured or Underinsured Motorist
- Specialty Coverages
Q. What exactly is liability insurance?
There are two types of liability insurance for motorcycles—bodily injury and property damage.
Q. What is bodily injury liability?
Bodily Injury Liability insurance covers you in case you injure or cause the death of another person.
Q. What is property damage liability?
Property damage liability covers you in case you cause the damage or destroy another’s property.
Q. What is collision coverage?
Collision coverage kicks in when your bike is damaged or destroyed by hitting another vehicle. It also will pay for damage to your motorcycle if you hit an object like a building or a tree.
Q. What is comprehensive insurance?
Also known as OTC (Other Than Collision) coverage, comprehensive coverage covers you from damage or loss from hail, fire, wind, theft or vandalism.
Q. What is medical payment coverage and how is that different from bodily injury coverage?
The medical expenses of you or any injured passenger will be paid up to the policy limit if you select this coverage. It’s different than liability because it’s not paid out on the other injured parties. It’s paid out to you.
Q. What is roadside assistance coverage?
Roadside assistance covers you if your motorcycle breaks down in the following situations:
- Flat tire
- Dead battery
- Lockout
- Mechanical breakdown
- Electrical breakdown
- Inadequate supply of fuel, oil water or other necessary fluids
- Stuck in the snow, mud, water or sad within 100 feet of the roadway.
The coverage pays for towing to the closest repair facility. It will also pay for any necessary repairs that need to be made on the scene.
Q. What’s coverage for uninsured or underinsured motorists?
If you get into an accident with an uninsured motorist, this coverage will pay out on everything you need. If the motorist is underinsured and the repair cost is more than the coverage the other person has, this will pay any cost overage.
Q. What’s accessory or custom parts coverage?
This coverage takes care of the items not included as standard by the motorcycle manufacturer. This can include but not be limited to the following:
- Fairings
- Sissy bar
- Safety guards
- Highway pegs
- Crash/Roll bars
- Radios
- CB’s
- Custom seats
- Luggage racks
- And more…
Q. What if I have a collector’s bike?
You may want to consider agreed value coverage. This means that your insurance will pay out up to the value placed on the motorcycle when you bought the policy instead of the cash value for the bike.
Q. What does the motorcycle insurance application request?
In addition to the usual, it will ask for the following information:
- Whether or not you have an alarm
- Years of motorcycle driving experience
- Age of driver
- Whether or not you completed a safety course
- Whether or not you have a motorcycle license
Q. Where can I buy motorcycle insurance?
Many independent agents sell motorcycle insurance. Here at Donald J. Medeiros Insurance Agency we represent six carriers and two of which that specialize in motorcycles. You may want to consider one, especially if you have a custom bike or it’s being used in a special way.