When most people think about motorcycle insurance, they likely think about how expensive it is due to the high risk nature of riding a two-wheeled vehicle. There are many costs associated with owning a motorcycle that make the purchase of insurance a wise decision for anyone who intends to take to the road. For example, if you were involved in an accident while riding motorcycle and no other party was at fault, your own medical costs would be much more expensive than those of another person.
Motorcycle insurance basics
Many people mistakenly assume that they are covered by their homeowner’s or renter’s insurance policy if they are involved in an accident while riding a motorcycle, but the truth is that you need to get motorcycle insurance. Homeowner or renter policies almost never cover anything other than your personal property and it will not cover any injuries or medical expenses incurred as a result of a traffic accident. You will also want to understand what types of coverage you need for your bike so that you can make sure your policy includes those provisions. Coverage can be broken into three basic categories:
- Liability coverage: For this type of coverage, you should select liability limits that are higher than those of your homeowner’s policy. According to the American Motorcyclist Association (AMA), a typical motorcycle policy may provide up to $25,000 of liability coverage and the minimum basic limit is usually $25,000. Most states require that all drivers carry at least $10,000 per person for bodily injury and property damage for any accident.
- Medical payments coverage: This type of coverage is designed to pay for your own personal medical costs. It is not as common as other types of coverage, but it can be very useful if you are in an accident no matter who was at fault. The AMA recommends that you carry a minimum of $10,000 in medical payments coverage.
- Collision coverage: Collision coverage can help you pay for repairs or replacement costs in the event that your motorcycle is damaged in an accident. It covers damage to your own bike if you are considered to be at fault, as well as damage to other vehicles, buildings or property. The AMA recommends a minimum of $500 of collision coverage if you don’t have comprehensive and/or collision insurance on your primary vehicle.