There is plenty to know about motorcycle insurance but everything starts with familiarizing yourself with the state laws that set the legal minimum standards for this type insurance. Because every state has minimum standards that must be met in order to register the motorcycle, cyclists really need to consider all their insurance options.
For people considering purchasing a motorcycle, the time to obtain proper insurance estimates is before completing the purchase. Motorcycle insurance has several ways for the user to save money and tailor an insurance program that reflects the user’s cycling activity.
To a degree, using a motorcycle is dependent on weather conditions. Some cyclists may need year round insurance while others need seasonal coverage. Seasonal users will most likely want a rider for “storage coverage.”
Certainly, there is a similarity between car insurance and motorcycle insurance, but there are also distinct differences. For example, with motorcycle insurance, the passenger is often not included on a basic plan. In these cases, passenger medical and bodily injury insurance is offered through separate riders that are added to the basic policy.
Of course, there are similarities between motorcycle insurance and car insurance and even with all other types of insurance. Motorcycle insurance is based on risk factors. It is the compilation of all these risks that can cause insurance to be higher or lower.
Some of these factors, like the decision to ride seasonally or year round, are controlled by the policyholder. Standard risk factors like the age of operator, gender, type of motorcycle, driving history, location, and credit standing can influence the risk and therefore the cost of motorcycle insurance.
In terms of the actual motorcycle itself, it is evaluated by value and other factors like a sidecar, the policyholder’s riding habits and whether there will be passengers of not. Riding habits generally refer to the use of the motorcycle or scooter. Will it be used on the road or on a track? These driving habits offer very different risk factors.
Motorcyclists should remember that while states may have minimum standards for coverage, those standards might expose the policyholder to a high degree of risk. The savvy insurance purchaser knows his or her financial picture and what risk they can afford and how much risk is unaffordable.
For example, some motorcycle owners may be willing to reduce their premium with a $2,500 deductible while others could not conceive of having that much exposure. When selecting your coverage, the amount of the deductible is a very significant risk factor. The rule is that the higher the deductible is, the lower the annual premium will be.
Most motorcyclists also own a car or pickup truck. By coupling the motorcycle insurance with the auto insurance provider’s package, the motorcyclists may earn a discount.
Another way to control the cost of the coverage is for the motorcyclist to obtain achievement degrees from safe riding training courses. Policyholders who have recently completed the Motorcycle Safety Foundation and Military Safety Course will pay a lesser premium than those drivers who have not.
If the owner knows that passengers will be riding on the cycle, a Guest Passenger Liability Coverage rider is strongly suggested. This rider pays for any injuries suffered by the passenger, regardless of who is at fault.
In general, the best motorcycle insurance plan is generally considered to be the Comprehensive and Collision plan. Collision insurance covers the policyholder for replacement of the cycle or repairs to the motorcycle regardless of blame. The policyholder will set the deductible on collision insurance and purchase an appropriate amount of coverage that would allow for repairs and/or replacement.
Comprehensive coverage protects the policyholder against damages incurred by factors that are beyond your control. This includes damages caused by fire, theft, vandalism, or storm damage either while the motorcycle is being used or is in storage.
All motorcyclists should be sure they have medical injury insurance. With the cost of today’s healthcare, it does not take long to run up a bill that is beyond reach. Most motorcycle insurance companies offer insurance that protects the policyholder from uninsured or underinsured auto or motorcycle operators. It is surprising how many drivers do not have adequate insurance. This places an undue burden upon conscientious policyholders.
All the big name insurance companies offer motorcycle insurance as do lesser known carriers. Many motorcyclists familiarize themselves with the state standards and then visit several online sites. At these sites, the motorcyclist can select the basic plan and the options that provide a custom-built coverage program.
With a push of a button, the online insurance calculator will offer a price. This price is not carved in stone and will be modified according to the factors listed above. However, this will give the motorcyclist a basic idea of the cost of the insurance that they want.
Motorcycle insurance is a free marketplace that is subject to risk factors but is also subject to supply and demand. When the cyclist has procured several proposals, he or she should make direct contact with the carrier’s licensed agent.
Remember to make a determination about passenger insurance, a decision about your deductible and whether or not your homeowners, auto and motorcycle insurance can be bundled. Take good care of your insurance and ride with peace of mind.