Insurance
Making sure your motorcycle is properly insured is just as important as choosing the right bike. In this section, we will break down the different types of insurance and define the terms you will need to understand when buying motorcycle insurance.
Motorcycle insurance and insurance requirements can be very confusing, so we are going to give you an overview of what you should know.
Types of Coverage: There are 2 main types of Insurance, Full Coverage and Liability Only. Full Coverage protects you no matter how your motorcycle is damaged. Liability Only just covers what you damage, it does not cover damage to your motorcycle. See Definitions for a more in depth definition of the types of coverage. A lot of motorcycle finance companies will only require Liability Only insurance, but you need to know your particular needs so ask your Finance Manager or Insurance Agent which Coverage you will need.
Full Coverage consists of Comprehensive and Collision Coverage. Comprehensive Insurance covers damage to your vehicle caused by events other than a collision, such as flood, fire, hail, theft, or vandalism. Collision Insurance pays to repair damage sustained in a collision with another motor vehicle. There are many different options for your monetary coverage limits with full coverage insurance. Here is an example on one such coverage combination and how it works.
25,000/50,000/25,000: $25,000 per incident with a total of $50,000 per accident including $25,000 in uninsured motorist coverage. Other coverage options include 50000/100000/50000, 100,000/300,000/100,000, and 250,000/500,000/250,000. Ask your insurance provider which plan is appropriate for your purchase.
Uninsured Motorist Insurance: Works for you in case you get into an accident with someone who either has no auto insurance or doesn`t have enough coverage. This is especially useful if you do no have medical insurance, or enough medical insurance.
Definitions
Full Coverage: Covers your motorcycle from collision, theft, fire, flood, hail, theft, or vandalism. It covers your motorcycle and the other person’s vehicle depending who is at fault. Includes Comprehensive and Collision coverage. We recommend that you carry full coverage on your motorcycle, even though some finance companies will not require you to have it.
Comprehensive: Insurance covering damage to your vehicle caused by events other than a collision, such as flood, fire, hail, theft, or vandalism.
Collision: Insurance that pays to repair damage sustained in a collision with another motor vehicle.
Coverage Limits: For Full Coverage insurance, it defines the dollar amount of the coverage you have.
25,000/50,000/25,000: $25,000 per incident with a total of $50,000 per accident including $25,000 in uninsured motorist coverage. Other coverage options include 50000/100000/50000, 100,000/300,000/100,000, and 250,000/500,000/250,000. Ask your insurance provider which plan is appropriate for your purchase.
Liability Only: Insurance that covers bodily injury or property damage to others, to third parties. It covers other people, but not your motorcycle. A lot of motorcycle finance companies only require you to have liability insurance. This is the state minimum requirement of insurance to operate your vehicle on the road.
Uninsured Motorist Insurance: Works for you in case you get into an accident with someone who either has no auto insurance or doesn`t have enough coverage. This is especially useful if you do no have medical insurance, or enough medical insurance.
