As you prepare to hit the open road on your Harley Davidson this year you need to consider how well you're covered if something should go wrong. Motorcycle Insurance is available for all types of motorcycles and there are many optional coverages to choose from to round out your policy. Most mainstream insurance companies offer Motorcycle Insurance for standard type motorcycles which typically include cruises, touring, trikes, street sport, along with mopeds, scooters, and sometimes golf carts.
When you're working with your agent or shopping online, it's important to make sure that the main coverages for your policy are in place. Below are some of the key coverage features to look for followed by some of the common optional coverages that many riders use to round out their policy. Keep in mind that every additional feature you add will increase the cost of your policy.
Key Coverage Features
- Liability for Bodily Injury and Physical Damage - if nothing else, it's important to have a strong liability coverage in place. This will provide legal liability protection if you're at fault in a crash and either injure someone or damage someone's property. It will also cover injury to your guest passenger. Most times the liability coverage limits will presented as three numbers such as 100/300/50. This means that the most the insurance company will pay is $100,000 per person for bodily injury, $300,000 per accident for bodily injury, and $50,000 per accident for physical damage.
- Collision - this covers damage to your motorcycle if you collide with another vehicle or object. A deductible does apply.
- Comprehensive - this provides coverage if your motorcycle is damaged due to something other than a collision, such as fire, theft, or hitting an animal. A deductible does apply.
- Uninsured/Underinsured Bodily Injury or Physical Damage - if the at-fault driver in an accident doesn't have insurance or doesn't have liability limits high enough to cover the full cost of your medical bills or vehicle repairs, this coverage will pay for the additional expenses above the at-fault driver's liability limits.
- Medical Payments (Med Pay) - Regardless of fault, this coverage will pay for your or your passenger's medical expenses incurred due to a motorcycle accident up to the limit listed on your policy.
Common Optional Coverages
- Accident Forgiveness - normally a surcharge is applied if you have an accident which causes your rates to go up. With this coverage in place, the surcharge is waived for your first accident while covered under the policy. Each insurance company that offers this coverage will have its own rules for qualification. There may be a waiting period before it activates or they may look at your driving record to see if Accident Forgiveness applies immediately.
- Custom Parts & Equipment - many times there is a minimal amount of custom equipment coverage automatically included in your policy, but it differs by insurance company. This pays for damage to after-market parts, such as custom paint, sidecars, pull-behind trailers, etc. Automatically included coverage could be anywhere from $0 - $3000, and then that amount can be increased, sometimes up to $50,000 in coverage, for an additional premium.
- Towing and/or Roadside Assistance - The features of this coverage can be very different depending on the insurance company. It may only pay for towing from the location of the breakdown to a nearby garage, or it could be very inclusive and also cover lockouts, running out of gas, flat tires, etc. You'll want to make sure you completely understand how this works if you have it on your motorcycle insurance policy.
- Trip Interruption - if your motorcycle is damaged and you are a set distance from home, typically 100 miles or more, this coverage will pay for meals and lodging expenses and potentially your travel costs to get home.
The most important thing you can do once you've decided on the coverages you want is to make sure you get all the discounts possible. Below are some of the common discounts available.
- Multi-Cycle Discount - a discount for having more than one motorcycle covered on the same policy.
- Multi-Policy Discount - a discount for having more than one policy with the same insurance company, typically your home insurance, renters insurance, and/or auto insurance.
- Renewal Credit - a discount for having the same policy in place for consecutive years.
- Association Discount - some insurance companies give discounts if you're a member of a motorcycle association such as the American Motorcycle Association (AMA) or Honda Riders Club of America (HRCA).
- Paid-in-full Discount - many companies give a 5% to 10% discount for paying the entire 12 month premium at once.
- Garaging Discount - it goes without saying that if your motorcycle is stored in a garage instead of out in the open it is less likely to be damaged or stolen. Because of this, many insurance companies offer a discount for keeping your motorcycle in a garage.
While this is meant to be a guide, it is highly recommended that you review your actual motorcycle policy to verify what features and limits you have in place. If you have a local agent, give them a call or set up a meeting to go through your policy if you have any questions. It's a good idea to go through an insurance review every couple of years to make sure that the coverages you have in place still fit your life situation, not just with motorcycle insurance but across all your insurance policies. This can be done on your own if you're comfortable or with your local agent.
It is also important that you pick a reputable insurance company. To be safe, an insurance company with an AM Best Financial Strength Rating of an A- or better should be used.
Please also take a look at a companion piece to this: A Quick Reference Guide to Buying Renters Insurance
Nicholas Kirk - Seeking happiness outside ourselves is like waiting for sunshine in a cave facing north. ~ Tibetan saying
