Although motorcycles are fun to drive, they come with their fair share of risks, including accidents. Most motorcycle riders are willing to take the risk in order to get on two wheels, but it’s still important that you’re prepared if disaster strikes. Here are seven common mistakes that motorcyclists make when trying to find insurance coverage for themselves or their bikes.
1. Not doing your research
Although you may not be a policy expert, it’s important to understand the basics of motorcycle insurance. If you’re considering purchasing an existing policy from another rider, check with your insurer first to make sure that there isn’t already coverage under your name—and that it won’t lapse between purchases. Also, make sure you’ve acquired the necessary coverage. For example, if your bike is financed, chances are the bank will require collision and comprehensive insurance to protect its investment.
2. Not carrying enough liability coverage
Liability coverage is a must for all motorcycle riders because it protects others from injury or property damage that occurs as a result of an accident you cause. The policy limit you choose will depend on your bike, but it should never be lower than $100,000 per person or $300,000 per accident.
3. Not understanding what “agreed value coverage” entails
This type of coverage is not the same as replacement cost—which pays out based on the amount needed to replace the bike—but it does have its benefits. Agreed value coverage gives you the option of choosing between actual cash value and replacement cost, as well as the amount of depreciation that will be subtracted from your claim settlement. However, if you’re able to replace your motorcycle for less than what you initially paid for it, agreed value coverage may not be the best option.
4. Not getting enough liability coverage
This mistake is similar to the first, but it warrants its own mention because of how crucial adequate insurance can be in accidents. If you damage another party’s property and they successfully sue you for the full amount, you’ll have to pay for any damages that exceed what your insurer will cover. Don’t risk putting your savings at risk—make sure you have enough insurance to protect them if the worst should happen.
5. Declining uninsured or underinsured coverage
Although it’s not required by law, UM/UIM coverage is an important addition to your motorcycle policy that can help cover medical expenses and property damage for accidents involving another party that doesn’t carry insurance. Without this coverage, you’ll have to pay out of pocket for both yourself and your bike, which could lead to major financial problems.
6. Going without collision and comprehensive coverage
If you own a newer or more expensive motorcycle, it’s advisable to purchase comprehensive and collision insurance as well. These two policies protect you in the event of theft, vandalism, collisions with an object or another vehicle, and damage due to weather. As mentioned earlier, they also prevent your insurer from depreciating the value of your bike based on its age—which can help you get back on two wheels more quickly.
7. Not comparing rates when shopping around
When it comes to insurance, you should never settle for the first price you’re given. There are plenty of motorcycle insurance providers out there that compete for your business, and it’s up to you to make sure they continue to do so by getting a few quotes before making a decision.
What is motorcycle insurance?
Motorcycle insurance is a type of coverage that protects the rider and his or her investment in case of accidents, theft, and damage.
What is PIP?
PIP stands for personal injury protection and it provides coverage for medical expenses without regard to who was at fault in the accident.
How much does motorcycle insurance cost?
Like auto insurance, the price of your policy will depend on factors like your bike’s make and model, its age or mileage, where you live, your driving record, and other factors.
What does motorcycle insurance cover?
This type of coverage can vary depending on your policy, but most policies provide for personal injury protection (PIP), liability insurance, uninsured/underinsured motorist coverage (UM/UIM), collision and comprehensive coverage, and medical payments.
To Sum Things Up
I hope this article has helped you understand the importance of motorcycle insurance. You can now avoid making these common mistakes with your coverage and save money too! We would love to hear what you thought about our blog post, so please leave a comment below or share it on social media. Thanks for reading!