Motorcycle Insurance

A Motorcycle Insurance Primer

Most motorcycle problems are caused by the nut that connects the handlebars to the saddle.*

~Author Unknown

Picture this: An open road. A desolate landscape stretching out in front of you. (Let's say somewhere in Monument Valley, Utah.) The wind is at your back. The tanks is full.

Then this thought spoils the moment: Do I have (enough) insurance?

To prevent a moment-spoiling tragedy, make sure you've got the insurance part figured out before you gas up the hog and light out for the open road.

Know the law

The first thing to do is check the laws in your state. While most require a minimum amount of liability coverage, there is quite a bit of state-by-state variation when it comes to two-wheeled transportation.

Insurance options

Some insurers sell separate policies just for motorcycles, while others offer coverage as part of an endorsement on an existing auto policy. It's a good idea to check your options with your auto insurance provider first.

Know your stuff

Although you may already be familiar with the following terms (they're the same for car insurance) let's take a second to go over the various coverages:

Liability

Liability covers bodily injury and property damage that you cause to others. The Insurance Information Institute (III) recommends checking to make sure you prospective policy includes Guest Passenger Liability.

Uninsured/underinsured motorist

If a driver without insurance or adequate coverage hits you, this coverage pays for medical treatment, lost wages and, usually but not always, property damage.

Collision

As the word suggests, collision coverage pays for damage to your ride if you're in an accident. Most insurers will cover the actual cash value (or "book value") of your motorcycle. You can choose the deductible you want-the amount you pay before your insurers starts paying, that is.

Comprehensive

This coverage pays for motorcycle loss or damage that's not the result of an accident-theft, fire, vandalism, etc. Like collision coverage, comprehensive covers the book value of your bike (not the original retail price), minus your deductible.

Also, consider some of the factors that will likely affect your premium.

Type of bike

A high-performance sport bike may cost you more than a mellow touring cruiser. Why? Because the former is more dangerous and is historically more attractive to people who like to take risks.

Intended use

If you live in Minnesota and plan to commute year-round to work on your Harley, brace yourself for a steeper premium. Some insurers may actually give you a break if you buy a "lay-up policy" wherein, in exchange for a lower premium, you opt not to drive during the winter months.

Storage

This may sound like a no-brainer, but if you plan on throwing a blue tarp over your bike and storing it in the driveway where the world can see it, you're likely going to have to pay more for insurance than if you plan on tucking it away in a secure garage.

Driving record

Again, this is pretty straightforward. If you have a clean driving record, you will probably be rewarded with a lower premium. There are often also discounts available for graduates of safe-driving courses and members of motorcycle associations.

*As fellow motorcycle aficionados, we mean no offense by the above quote. We just thought it was funny.

Resources:

State departments of motor vehicles, courtesy of the Auto Exchange: http://www.autoexchange.net/dmv/

State departments of insurance, courtesy of the National Association of Insurance Commissioners: http://www.naic.org/state_web_map.htm