Motorcycle Insurance: Effective Coverage for your Vehicle

You may own both a car and a motorcycle. Owning a car definitely requires you to have the state minimum auto insurance. However, many of you may think that motorcycle insurance covers everything similar to what auto insurance covers. But it is not so. The fact is there are specific differences between motorcycle insurance and auto insurance.

Like any other insurance, motorcycle insurance too differs from one state to another and also from one insurance company to another.

What are the motorcycle insurance coverage available?

Motorcycle insurance is available as:

Liability Insurance – If you happen to cause any bodily or property damage to someone in an accident, this insurance will provide coverage. Even if this policy does not cover you or your motorcycle, you must not avoid it. You must also find out if your coverage has Guest Passenger Liability in case of injury to someone riding your bike. Usually older drivers have a better net worth than most of the standard liability limits of different policies. Most of the times there is a risk that these drivers are underinsured. So it is recommended by experts to carry liability insurance that covers their net worth at least.

Collision Coverage – Covers damages to your motorcycle if you happen to face an accident. When providing coverage, the insurance company will pay the amount minus the deductible. This insurance covers only the actual cash value of the motorcycle before the accident.

Comprehensive Coverage – When damages are caused by some condition other than collision e.g. fire, destruction or thievery, this will be covered by the comprehensive policy. The insurance company will provide coverage after subtracting the deductible. Only the book value/actual cash value of the motorcycle before the collision will be considered. If you have added any accessories to your motorcycle, the comprehensive coverage policy will not cover them. You will need to purchase separate coverage.

Uninsured/Underinsured Motorist Coverage – When another driver, who is not insured (uninsured) or does not have adequate insurance (underinsured) causes damages to you or your property, your uninsured/underinsured motorist coverage will protect you.

How can you effectively insure your motorcycle?

You may benefit from the simple tips to get effective motorcycle insurance:

1. Look for good offers: Many insurance companies may offer good discount rates for graduates or for other students who enroll in training courses. These courses may be a good idea for students who have already had cases of accidents or are under the age of 25 and have greater risks of getting involved in accidents.
   
   
2. Driving Record: You can help in reducing your premiums by maintaining a good driving record. If you do not have a good driving record, you will naturally have to pay greater premiums since the insurance companies may think you to be prone to accidents in future too.
   
   
3. Lay-Up Policy: A lay-up policy provides only the comprehensive coverage during the winter season and may help many riders save money.
   
   
4. Look for discounts: Many insurance companies offer discounts on motorcycle insurance. Individuals insuring more than one bike may receive multi-bike discounts if they are a member of the motorcycle association. Experienced riders may benefit from mature rider discounts of 10% - 20%. The discounts depend on your country or state and also from one company to another.
   
   
5. Type of bike: The type of bike that you ride in, the place you keep your bike in, the number of miles you drive in a year may also be important factors in determining the premiums that you need to pay for the motorcycle insurance.

You may contact the same insurance provider from whom you got auto insurance or maybe ask friends or relatives to help. Local motor magazines and news papers can be of help too.

How can you make your motorcycle insurance claim?

Making a claim is an easy task. You only need to have the necessary information ready. To state it simply, motorcycle insurance may be classified into 3 sections:

1. Section 1 deals with the damage that you may cause to some other person whom you collide with. It may be a person or even their car or motorcycle or any other vehicle, house and the like. This also involves personal injury to others and will be covered under liability insurance.
   
   
2. Section 2 speaks of medical coverage. When you are involved in an accident there are high chances that you could hurt a passenger or even yourself. In such a scenario, you must have adequate medical coverage to protect yourself from the damages. You may be safe with regular health coverage from your employer. But in case someone who does not have insurance has borrowed your motorbike, meets with an accident then in that case you need to have a motorcycle medical insurance too.
   
   
3. Section 3 deals with collision coverage. When you make a claim for collision coverage keep the following points in mind:
   • See if the company has 'repair' or 'replace' options.
   • Find out if you can select the repair shop for your bike or does the company suggest one.
   • Keep the VIN, registration number and engine number handy.
   • Think whether your bike was in legal condition before the accident took place.

However, remember that when you make a claim for motorcycle insurance, there are going to be judgments on your claim and that it will be well scrutinized. So, be prepared for such an event.

No matter what your age may be, you must always be very careful when driving. Motorcycles are more prone to accidents than cars. Insurance companies may reject your request for insurance if you have a history with too many accidents. If you want to secure your future, drive safely.