Riding a motorcycle is a blast, but it has its risks. Besides the physical dangers, there’s also a financial risk to consider. Every year, thousands of motorcycle accidents lead to hefty settlements. While motorcycle insurance can’t protect riders from getting hurt, it can help cushion the blow of any financial fallout.
Motorcycle insurance works similarly to auto insurance, but it’s tailored specifically for bikes. The coverage options are adjusted to meet the unique needs of motorcyclists.
Topics Covered
About Motorcycle Insurance
Is Motorcycle Insurance Separate from Car Insurance?
Yes, motorcycle insurance and car insurance are different. Both policies address the specific needs and risks associated with either motorcycles or cars.
I Have Car Insurance. Do I Still Need Motorcycle Insurance?
Yes, you do. Even if you already have car insurance, it doesn’t cover you when riding a motorcycle. Car insurance policies are meant for car-related accidents and damages. You’ll need a separate motorcycle insurance policy to protect yourself and your bike. However, some top insurance providers offer a motorcycle endorsement, which lets you add motorcycles, mopeds, or scooters to your existing car insurance for an additional premium.
Why is Coverage Different for Cars and Motorcycles?
Coverage varies between cars and motorcycles because they are fundamentally different types of vehicles.
Motorcycles are generally faster than cars but lack the protective metal enclosure that cars have. According to the NHTSA, “Per vehicle mile traveled in 2019, motorcyclists were about 29 times more likely than passenger vehicle occupants to die in a motor vehicle crash and were four times more likely to be injured.”
On the other hand, cars, though typically slower, are larger and heavier, which can cause more damage in an accident. While motorcycle accidents are more likely to be fatal, car accidents tend to result in more property damage, leading to higher insurance payouts.
These differences mean that insurance for cars and motorcycles needs to be tailored to their specific risks and characteristics. Motorcycles have unique features and issues, so riders need insurance coverage designed just for them.
What Does Motorcycle Insurance Cover?
Motorcycle insurance functions like auto insurance, protecting the rider from financial loss due to accidents or theft. Motorcycle insurance policies are tailored to meet unique needs, such as coverage during off-season storage, transport damages, or accessories. This ensures that your bike and your passion for riding are well protected.
What Coverages Are Available Through Motorcycle Policies?
Motorcycle policies offer coverages similar to those found in auto policies, such as:
- Personal Injury Protection (PIP): Covers injuries sustained by people on the bike.
- Bodily Injury Liability Coverage: Covers injuries sustained by other people.
- Comprehensive and Collision Coverage: Covers damage to the bike.
- Property Damage Liability Coverage: Covers damage caused to other property.
- Uninsured and Underinsured Motorist Coverage: Covers accidents caused by others who aren’t adequately insured.
Additionally, some motorcycle policies offer:
- Accessories and Custom Parts Coverage: Covers aftermarket parts.
- OEM Parts Coverage: Ensures repairs use OEM parts.
- Personal Belongings Coverage: Covers belongings carried on the bike.
Unlike car insurance, which automatically covers passengers in an accident, motorcycle insurance assumes bikes are primarily for one person. Therefore, standard motorcycle insurance only covers the rider.
If you want to ensure your passengers’ coverage, you’ll need to purchase additional coverage, such as guest passenger liability insurance or medical payment coverage.
Cost of Motorcycle Insurance
Motorcycle riders are more prone to injuries in accidents than car drivers, and those injuries are usually more severe due to the lack of protection. This makes motorcycle insurance generally more expensive than car insurance. However, riding an inexpensive bike and having a good riding history can help reduce your premium.
When choosing motorcycle insurance, pricing is a significant factor. Several things can influence your premiums, including:
- Type of Motorcycle: Your bike’s make, model, and year significantly affect insurance costs.
- Rider Experience: More years on the road without incidents can lower your premiums.
- Location: Living in high-traffic or high-accident areas can lead to higher premiums.
- Deductibles and Coverage Limits: Higher deductibles and more extensive coverage can cost more upfront but may save you money on out-of-pocket expenses in the long run.
- Age and Gender: Younger riders and males typically face higher premiums due to higher accident rates.
Understanding what drives premiums can help you make cost-effective choices that balance coverage with affordability.
Minimum-Coverage Motorcycle Insurance Cost
According to MarketWatch, the average cost for minimum coverage, based on quotes from major motorcycle insurers, is about $156 a year or $13 a month.
However, the exact cost can vary depending on your bike type. Here’s a breakdown of the average prices for different kinds of bikes:
- Standard Bike: $91 per year or $8 a month
- Sports Bike: $136 per year or $11 a month
- Touring Bike: $241 per year or $20 a month
These averages can help you get a sense of what to expect based on your motorcycle type.
However, other factors can affect your motorcycle insurance rates.
What Factors Influence Motorcycle Insurance Rates?
Here are some key factors that affect your motorcycle insurance premiums:
Type of Coverage: The extent of coverage you choose affects your rate. A policy that only provides the minimum required coverage will be cheaper than one with comprehensive and additional coverage.
Place of Residence: Living in areas with long winters typically means lower rates since there’s less riding time and fewer chances for accidents. Conversely, high-crime areas are considered high-risk, which can increase rates.
Experience: Experienced riders usually pay lower premiums than those with less experience. You can reduce your premiums by taking an authorized defensive driving course and maintaining a good driving record.
Purpose of Use: How often you use your bike matters. If you ride daily for work, you’ll pay more than someone who only rides on weekends for leisure.
Model of Motorcycle: Bikes with powerful engines and many accessories may encourage faster riding, increasing the risk of accidents and your premiums.
How to Save on Motorcycle Insurance
Laid-Up Insurance
Consider laid-up insurance to cut costs during the winter months when your bike isn’t in use. This coverage protects against fire, theft, or other damages while storing your bike. It’s a unique option available only for motorcycles.
The Benefit of Bundling
Bundling your motorcycle insurance with other policies, like homeowner’s or auto insurance, can offer significant savings. Insurers often provide discounts for bundling, making it an attractive option for riders. Besides saving money, bundling simplifies managing your insurance needs by consolidating multiple policies under one provider, often resulting in a single point of contact for all your insurance needs.
Safety Measures and Their Impact
Insurance companies often reward proactive safety measures. Completing a motorcycle safety course can lower your premiums, and adding safety devices like anti-lock brakes or advanced alarm systems can qualify you for discounts. Safer riders and bikes result in fewer claims, which benefits you and your insurer.
How Can I Lower My Motorcycle Insurance Cost?
Most insurance providers offer discounts and ways to save on motorcycle insurance. Here are some tips to reduce your rate:
Ask About Other Discounts: Inquire about available discounts, such as payment discounts, association discounts, and long-term responsible driving discounts. These can significantly reduce your premium.
Obtain Quotes from Multiple Providers: Compare quotes from different insurance companies to find the best deal.
Buy a Simple Motorcycle: Less sophisticated bikes usually have lower insurance premiums.
Purchase Only the Required Liability Coverage: States have different minimum requirements for motorcycle coverage, so consider only buying the mandatory insurance.
Combine Policies: You can take advantage of multi-policy discounts by combining your motorcycle insurance with your car or home insurance.
Need to learn more about Motorcycle Insurance?
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*Disclaimer: We offer content for informational purposes; Co-operative Insurance Companies may not provide all the services or products listed here. Please get in touch with your local agent to learn how we can help with your insurance needs.
Sources
Insurance Information Institute. Motorcycle insurance. https://www.iii.org/article/motorcycle-insurance
Nerd Wallet. A Complete Guide to Motorcycle Insurance. https://www.nerdwallet.com/article/insurance/motorcycle-insurance
Policy Genius. Motorcycle insurance: How to get coverage. https://www.policygenius.com/auto-insurance/how-does-motorcycle-insurance-work/