Motorcycles offer unique freedom and adventure, but like any other vehicle, they require insurance for protection. Here’s a detailed guide to understanding motorcycle insurance, covering essential requirements, coverage options, lay-up periods, discounts, and insurance providers.
Also Read [How to Buy Car Insurance in the United States: Top 5 Options]
1. Motorcycle Insurance Requirements
Most U.S. states mandate that motorcycle owners purchase liability insurance, which covers others’ injuries or damages if you’re at fault in an accident. Here’s a breakdown of essential requirements:
- Minimum Liability Coverage: Required liability limits for motorcycles are typically the same as those for cars.
- Passenger Liability: In some states, additional passenger liability is required to cover injuries to passengers.
- Uninsured/Underinsured Motorist Coverage: Protects against accidents caused by drivers without adequate insurance. This coverage often includes property damage, but some insurers may sell it separately.
Many riders opt for coverage beyond minimum requirements to safeguard personal assets in case of costly legal claims. Always verify requirements with your insurer, as some states have unique coverage mandates, such as Florida’s $10,000 medical benefits requirement.
2. Coverage Options for Motorcycle Insurance
Motorcycle insurance offers similar coverage options to auto insurance. Key coverage types include:
- Collision Coverage: Pays for damage to your bike after a collision, minus the deductible.
- Comprehensive Coverage: Covers theft, non-collision damage, and collisions with animals (subject to a deductible).
- Medical Payments (MedPay): Covers medical expenses for you and your passenger, though it doesn’t extend to lost wages.
- Personal Injury Protection (PIP): Provides medical coverage regardless of fault but is not universally available to motorcyclists.
Additional add-ons offered by insurers:
- Trip Interruption Coverage: Covers expenses like lodging and food if your motorcycle breaks down far from home.
- Custom Parts and Accessories Coverage: Protects custom equipment, often with limits up to $30,000.
- Transport Trailer Coverage: Offers protection for trailers, generally up to $7,500.
- Roadside Assistance: Provides help for breakdowns, including towing and minor repairs.
3. Motorcycle Insurance Lay-Up Periods
During the winter, many motorcycle owners store their bikes and may be eligible for lay-up insurance. This option allows riders to pause their full coverage while retaining protection against theft and non-collision damages. However, remember that taking your bike on the road during this period voids this coverage.
4. Motorcycle Insurance Discounts
Many insurers offer discounts to help reduce premium costs. Common discounts include:
- Multi-Policy Discount: Insure your motorcycle and another vehicle or property with the same company.
- Safe Driver Discount: Maintain a clean driving record to earn rate reductions.
- Multi-Bike Discount: Insure more than one motorcycle under the same policy.
- Rider Training Discount: Complete an approved motorcycle safety course.
- Mature Rider Discount: For experienced riders over 55 or long-term policyholders.
5. Insurance Options for Destroyed or Stolen Bikes
Understanding how your policy compensates for a total loss is essential. Insurance companies may offer the following options:
- Actual Cash Value: Pays the depreciated value of your bike, minus the deductible.
- Stated Amount: Pays a pre-determined amount set at policy purchase.
- Agreed Value: A fixed amount agreed upon by you and the insurer with no deductible, ideal for custom or classic motorcycles.
6. Top Motorcycle Insurance Providers
Here’s a look at popular providers offering motorcycle insurance, along with unique features and benefits:
USAA
Offers motorcycle insurance from Foremost Insurance Group. USAA members get a 5% discount. Additional discounts are available for a claims-free driving record, insuring multiple bikes, and completing a driver safety course.
Nationwide Insurance
Provides up to $50,000 in coverage for custom bikes and up to $30,000 for vintage bikes. For each year accident-free, deductibles reduce by $100.
Amica
Offers discounts for insuring multiple motorcycles, having additional policies with Amica, completing a safety course, and installing anti-lock brakes and anti-theft devices.
Country Financial
Provides discounts in cold-weather states for seasonal riders. A discount of up to 25% is available when bundling with homeowners or another policy.
Liberty Mutual
Includes Better Bike Replacement, which pays for a bike one year newer with 2,500 fewer miles if destroyed. Offers new motorcycle replacement without depreciation for the first year.
Geico
Covers accessories like CB radios and chrome pieces under collision and comprehensive insurance. Offers discounts for experienced riders, older drivers, and policy renewals.
Erie
Collision and comprehensive policies cover up to $3,000 for gear and safety apparel, with options to increase this limit. Includes roadside assistance with towing and labor.
AAA
Provides a disappearing deductible option that decreases with each year without claims. Offers discounts for full payments and customer loyalty.
Progressive
Standard coverage includes repairs with new parts without depreciation deductions. Claims under $500 don’t affect your record, and accident forgiveness applies if accident-free for four years.
Farmers
Collision covers up to $1,500 for safety gear, and comprehensive insurance includes up to $3,500 for equipment. Options include trip interruption coverage and up to $7,500 for transport trailers.
State Farm
Covers various types of motorcycles, including classic, custom, and mini-bikes. Offers emergency roadside assistance and protective gear coverage for interrupted trips due to bike damage.
Auto-Owners
Provides coverage for mopeds, motorbikes, and scooters in addition to motorcycles. Offers a seasonal price break in some states if not riding in winter.
National General
Waives up to $250 in deductible if claims handling was unsatisfactory. Collision and comprehensive insurance cover safety apparel and accessories up to $2,000.
American Family
Covers custom accessories up to $3,000 under the basic policy, with higher limits available. Safety gear coverage includes up to $1,000 for helmets, boots, and other protective items.
Allstate
Includes accident forgiveness for policies over four years old. Optional new motorcycle replacement feature reimburses for a new bike if destroyed in an accident within two years.
