Insuring Motorcycles – What you need to know!
Posted on Tue, Mar 30, 2010
Three days of Sunshine in early April and motorcycles owners are rushing to get their motorcycles registered and insured. There is a tendency for people to focus on getting things done fast at a low price and this can be a big mistake. You can get injured just as bad riding a 10 year old motorcycle worth $1,000 as you can riding a $25,000 Harley and you can do as much damage to other people as well. Taking 15-30 minutes to make educated decisions on coverage and coverage limits makes sense. If you could collect $80,000 instead of $20,000 after you are hit by an underinsured driver, would that be worth paying $50 more today. Does that make sense for you? It may or it may not but take the time to understand the options.
Here is some information to help get you started but keep in mind that it is not intended to make you an insurance guru. Let your licensed insurance agent help you work out the final coverage details.
Bodily Injury Coverage - Pays for bodily injury to others if you are at fault in an accident and someone is injured. This coverage can be extended to provide coverage for your passengers. It also protects what you own, and it makes sense to buy high limits, if you have assets to protect. An accident with a car may not result in a lot of bodily injury however an accident with another motorcycle or a pedestrian can result in significant injury.
Property Damage Coverage - Pays for damage to other property resulting from an accident in which you were at fault. This could be damage to another bike, to a car or a structure like a fence or a home.
Medical Payments - Pays for injuries to you that result from an accident and it does not matter who is at fault. If you have health insurance, a small limit can be useful to cover co-payments and deductibles on your health insurance policy. If you do not have health insurance, you should purchase as much as you can afford.
Collision - Pays to repair or replace your motorcycle in the event of an accident, regardless of who is at fault. This coverage is usually required if you have a loan and most lending institutions require a $500 deductible. The deductible is the amount you would be responsible for in the event of an accident. Higher deductibles can save you money.
Comprehensive - Pays for theft of your bike and for damage from anything other than a collision. Examples include vandalism, falling objects, fire, storms and flood. Deductibles apply here too.
Uninsured/ Underinsured Motorist. - These coverages can be looked at as a form of disability insurance and they pay when the person at fault in the accident does not have insurance or if they have do not have enough insurance to pay for the costs related to your injuries, such as medical costs, lost wages and pain/suffering. Having the right coverage limits can make a dramatic difference if you are injured in an accident and it does not have to cost a lot!
Towing and Labor or Roadside Assistance - Pays to fix your bike on the road (flat tires, small mechanical repairs) if you breakdown and also pays if the bike needs to be transported to a repair facility following a mechanical break down or an accident.
One More Piece of Information Many Massachusetts insurance companies will now let you add your motorcycle to your existing auto policy. This helps keep things simple with one bill, one finance charge, etc. and it also means you don't need to complete a new application every spring if you are someone who likes to cancel the coverage over the winter months.