What are the Different Types of Motorcycle Insurance?

Motorcycles face unique risks compared to other motor vehicles. They are generally considered more dangerous, since the driver sits on top of the vehicle instead of in an enclosed space with air bags. Motorcyclists also often don’t wear the recommended amount of padding, which only adds to the danger. Things can grow even more complicated if an accident happens with another rider on the back, and damage done to a motorcycle is usually worse than that of a car in the same accident. Luckily, there is auto insurance geared specifically for the dangers that motorcycles face on the road.

Coverage Available Under Motorcycle Insurance

• Comprehensive Coverage provides compensation if your bike is damaged or lost due to fire, theft, vandalism, wind, hail or other covered incident.
• Motorcycle Collision Coverage provides compensation if you hit another vehicle or object while operating the insured bike.
• Liability covers different aspects of liability dangers including bodily injury and property damage liability. This insurance steps in if you cause bodily injury or property damage to someone else.
• Uninsured/Underinsured Motorist Coverage provides compensation if you crash with someone who doesn’t carry auto insurance or whose insurance won’t cover the damages.
• Guest Passenger Liability provides compensation for injuries your passenger may have as a result of a crash. It may also help cover legal expenses if your passenger decides to sue.
• Customized Motorcycle Parts Coverage is geared for items added or customized to your bike. These items are generally expensive to insure, so it’s important to add this coverage if your policy doesn’t already have it.

There are optional coverages as well, including:

• Roadside Assistance helps if you break down and need help towing or transporting your bike.
• Trip Interruption Coverage helps if you crash while 100 miles or further away from home. It can provide compensation for lodging, transportation or even food while your bike is being repaired. This is especially useful if you tend to take road trips on your bike.
• Transport Trailer Coverage provides compensation for certain trailers, usually worth $7,500 or less.

You have three choices when signing an insurance policy as to how you will receive compensation. These options are actual cash value, stated amount and agreed value. Actual cash value doesn’t account for depreciation and pays you for how much the bike was worth. The stated amount is an amount you choose when signing the policy. This is similar to an agreed value, but the agreed value is fixed and does not require a deductible.

Is Motorcycle Insurance Required?

Motorcycle insurance is required in 49 out of 50 states with Florida as the only exception, though coverage requirements vary per state. Each state that requires motorcycle insurance dictates that motorcycle owners must carry bodily injury liability and property damage liability in case they cause harm to someone else or their property. Motorcycle insurance in Florida is tricky, however, as bikers are still expected to be able to pay for damages in case they cause an accident. This means that, while insurance isn’t required, it’s important to have insurance to pay for possible medical fees which can be very expensive. The recommended amount for minimum coverage on a motorcycle in Florida is $10,000 in bodily injury per person, $20,000 in bodily injury for two or more people and $10,000 in property damage liability.