Motorcycle Insurance

When you purchase a new motorcycle, the matter of insuring it becomes a top priority. If you financed your vehicle purchase, your lender likely has an insurance requirement that you must follow. In addition, there may be a legal requirement in your state for motorcycle insurance. The requirement varies by state, but it generally relates to your ability to be financially responsible for damages that you create while using your motorcycle. If you create property damage, medical bills and more for other people while using your motorcycle, you typically are required to pay for all related expenses. The legal requirement for insurance usually is in place to ensure that you have the financial means to pay for most or all related expenses that you are responsible for.

Before you purchase motorcycle insurance, you should understand what the coverage requirements are and how they benefit you. In addition to a state’s requirements, you may also have a lender’s requirements to comply with. A lender’s typical requirement for motorcycle coverage relates to the replacement or repair work on your vehicle, which is the lender’s collateral. Be aware that motorcycle coverage may specifically provide benefits only if the vehicle is damaged in a collision, but it could also provide benefits for most types of damaging events. These additional events may include a fire, bad weather and more.

Be aware that your insurance policy will have specific limits. Your policy provides benefits up to these limits, but you will be financially responsible for expenses that extend beyond these limits as well as for expenses not covered by your policy’s terms. Understand how your policy works and what it includes before you finalize your purchase. Your policy for motorcycle coverage may also provide benefits for personal injury losses, rental car expenses and more. You also should focus on your insurance deductible when setting up coverage. A deductible should be paid for each claim that you file. Some motorists select a very high deductible in order to generate a lower premium. However, the deductible should always be affordable for you to pay when you need to file a claim.