Motorcycle Insurance: Everything You Need to Know About Insuring Your Bike

Motorcycle riding is more popular today than ever before. In fact, according to the U.S. Department of Transportation, there were more than 7.1 million motorcycles on the road in 2007 and sales for 2008 topped nearly 1.1 million. While motorcycle enthusiasts come from all different backgrounds, these days it seems to be attracting a large number of older, more experienced enthusiasts from affluent backgrounds. Unfortunately, even the most experienced motorcycle riders can have an accident, and in many cases it is by no fault of their own.

Motorcycles are susceptible to accidents for several reasons. For starters, motorcycles offer no protection from the elements and road conditions. They are less stable than automobiles, and they are much less visible to pedestrians and other drivers that cars. Alone or combined, these elements played a role in roughly 30% of the 123,000 motorcycle crashes reported for 2007. The other 70% of all motorcycle accidents was caused by inattention of the other driver. Of the 123,000 motorcycle accidents in 2007, 5,154 resulted in death. A large number of the remaining accidents were property-damage only accidents. Unfortunately, 2007 was the worst year for motorcycle fatalities since 1975, according to the Department of Transportation. What’s worse is, the number of motorcycle accidents and fatalities has steadily increased over the past 10 years.

Because of the dangers involved in owning and riding a motorcycle, motorcycle insurance is must -- even if your state does not have mandatory motorcycle insurance laws. According to the Insurance Information Institute, Washington, Montana, and Florida are the only states that do not have mandatory motorcycle insurance laws, and only 20 states and the District of Columbia have helmet laws.

In order to protect yourself and your motorcycle in the unfortunate event of an accident, you should carry more than the limits required by law. In addition, you should also search for a policy that has a wide range of coverages for motorcycle riders’ special needs. This includes:

•    Collision Coverage
•    Comprehensive Coverage
•    Liability Coverage
•    Medical Payments Coverage
•    Optional Equipment Coverage
•    Safety Apparel Coverage

Collision coverage protects against loss resulting from any damage to the policyholder’s motorcycle caused by collision with another vehicle or object, or by
upset of the insured car, whether it was the insured’s fault or not.

Comprehensive coverage pays for damages caused by an event other than a collision such as theft, vandalism, or fire.

Liability coverage covers the policyholder’s legal liability resulting from injuries to other persons or damage to their property. It provides protection for the insured against loss arising out of legal liability to third parties.

Medical payments coverage pays for medical expenses and in some cases, funeral expenses resulting from an accident for the person operating the motorcycle and the passengers.

Optional equipment coverage is available if you have comprehensive and collision coverage. This type of coverage covers damage to optional equipment or accessories such as chrome parts, trailers or sidecars, and even a custom paint job. In most cases, optional equipment coverage covers up to $3,500 for most accessories permanently attached to your bike.

Safety apparel coverage coves damage to any clothing designed to minimize damage from an accident. This includes helmets and leathers.

Your motorcycle insurance provider should also offer optional coverages such as:

•    Coverage on Transport Trailers Valued Up $7,500
•    Increased Limits on Liability (you can purchase higher liability limits and medical payments coverage)
•    Increased Limits on Optional Equipment Coverage (you can purchase higher optional equipment coverage)
•    Replacement Cost Total Lost Settlement Coverage (you must also purchase collision coverage)
•    Towing and Roadside Assistance with Trip Interruption Coverage Uninsured/Underinsured Motorists Coverage (provides extra security of you are in an accident with an uninsured or underinsured motorist)

When you are ready to purchase motorcycle insurance, it’s best to talk to an auto insurance specialist (in detail) in order to choose the best product for your own individual circumstances. The vast majority of auto insurance specialists are well versed in motorcycle insurance coverages. An auto insurance specialist will ask a series of questions pertaining to usage, make and model, mileage, value, accessories, and driving record in order to asses which products are best suited to your needs. In order to help the process run smoothly, you should have the following items ready before speaking with an auto insurance specialist:

•    Your Driver’s License
•    Title
•    Inspection Sticker

You must have a valid driver’s license to purchase motorcycle insurance in every state. If you have moved to another state, and you would like to purchase motorcycle insurance, you should get a new driver’s license for that state if you would like to save money on your insurance. In-state insurance costs less.

Your insurance agent will need the motorcycle’s title in order to sell insurance to you. If you do not have the title, you will not be able to purchase motorcycle insurance – in any state. And finally, all states have inspection regulations. Some are different than others. No matter which state you currently reside in, you will have to obtain an inspection sticker before your motorcycle can be insured. Contact your local department of motor vehicles for details.