The Differences Between Motorcycle and Auto Insurance

There are many benefits to owning a motorcycle. You can’t beat the gas mileage, and they transform monotonous commutes into exciting adventures.

Motorcycle owners, like car owners, need insurance to protect themselves. However, there are major differences between motorcycle and auto insurance.

There is a lot of new information for potential bike owners to understand, and there are necessary legal details to work out before deciding to purchase a new bike. 

Let’s learn more about these differences, so you can make sure that your motorcycle is covered. 

The Differences Between Motorcycle and Auto Insurance

Most people assume they’re knowledgeable about motorcycle insurance because of their experience with car insurance. Unfortunately, insurance agencies and governments don’t perceive these two vehicles the same way.

Here are some of the key differences.

Insurance Requirements

There are legal requirements for any vehicle on the road. For motorcycles, this can vary by state, but they usually require bodily injury coverage and property damage liability. The state, and the taxpayers, do not want to foot the bill for any potential accidents.

Of course, the minimum requirements may not fully cover the financial cost of an accident. In that case, you want to discuss extra coverage options.

Coverage Options

The average cost per motorcycle crash is over $200,000, yet most minimum state requirements only mandate $10,000 of coverage. This is a huge discrepancy that can leave a motorcycle owner in severe debt. 

Some states offer MedPay insurance to cover medical bills. Personal injury protection also covers the medical costs of anyone involved in a potential accident. 

Additionally, there are other coverage options like collision and comprehensive policies that cover accidents, theft, and destruction of property. 

Laid Up Insurance

During the winter months, it’s common for motorcycle owners to shelter their bikes and use other means of transportation. It’s too cold and icy to safely ride around.

Insurance companies often understand this and offer an adjusted, cheaper policy for the months you’re not riding around. There’s no accident risk, but theft or damage may still occur. In these cases, you’re still protected.

Theft and Damage

Many car insurance companies don’t cover theft or damage unless the client specifically asks for it, and motorcycle insurance is no different. 

These policies can either be for cash value, a stated amount, or an agreed value. A cash value policy will only net what the bike is worth after depreciation. Stated amount or agreed amount policies are less common and usually reserved for custom or classic bikes. 

Buying an Insurance Policy

There are clear differences between motorcycle and auto insurance, but one thing is the same. To get the best insurance policy, you have to be knowledgeable about the industry. Armed with this knowledge, you can confidently shop around for the best motorcycle insurance policy.

If you’re ready to purchase a new insurance policy for your motorcycle, don’t hesitate to contact us for a quote today.