After long consideration and comparing one model to another, you’re ready to pull the trigger and buy a new motorcycle. The next decision you need to consider is finding the right motorcycle insurance for your new bike. Finding the right motorcycle insurance will largely depend on factors such as:
- The type of bike you’re buying, perhaps it’s a home-grown Harley Davidson?
- How old are you? Some companies are more affordable than others if you’re young and don’t have as much experience.
- What company currently insures your auto and home, buying auto insurance from your current company could result in a multi-policy discount.
It is vital that you do your research before choosing a motorcycle insurance policy. Not only to get the best rates, but to find one that fits your needs and lifestyle.
Third-Party Liability Insurance, otherwise known as Bodily Injury coverage, is the most basic motorcycle insurance you can get and is mandatory in most states including right here in Wisconsin. The minimum coverage required by Wisconsin law is the same as what is required by cars, 25/50/10. What do these numbers mean? These numbers represent the amount of coverage you are carrying This covers any damage to people or property that you may be held liable for if your motorcycle is at fault. However, third party liability coverage does not include injuries to you or your passenger, or to the motorcycle itself. Nor is theft of your motorcycle. You may want to obtain a guest passenger policy if you regularly carry passengers, and it might be prudent to carry a full motorcycle insurance policy if you live in a place where motorcycle theft is a common occurrence.
- The first number represents the amount of Bodily Injury coverage you have for a single person. In this case $25,000. The second number represents to maximum Bodily Injury amount per accident. In this case $50,000. The third number represents the amount of Property Damage you’re carrying. As you’ve probably
- The second number represents to maximum Bodily Injury amount per accident. In this case $50,000. The third number represents the amount of Property Damage you’re carrying. As you’ve probably
- The third number represents the amount of Property Damage you’re carrying. As you’ve probably figured out by now, the minimum amount of coverage the state requires is $10,000.
Liability coverage does not include injuries to you or your passenger, or to the motorcycle itself. To provide bodily injury coverage to you and your passengers, should you or they be hurt or killed by an uninsured or underinsured motorist, you need to carry UI/UIM.
UI/UIM stands for Uninsured and Underinsured Motorist coverage. Think of this coverage as similar to the Liability coverage outlined above, but covering yourself and your passenger instead of a third-party.
Comprehensive and Collision
Comp and Collision coverage don’t cover you, your passengers, or third-parties; Comp and Collision cover damage or loss to your motorcycle.
- Comprehensive provides coverage should your bike be stolen, catch fire, suffers damaged due to weather-related events, or is vandalized.
- Collision provides coverage should you have an accident. That includes hitting another car or bike, a tree, or having to lay it down to avoid hitting a deer.
Each of these coverages has a deductible, which is the initial amount that you are responsible for. For example, if you have a $500 deductible on your Comp coverage and your bike is stolen, the insurance company would pay you what they value the bike for less your deductible. To make sure that you’re reimbursed fairly for a loss, be sure to let your agent know about all after-market options you’ve purchased to dress-up your bike.
Full Insurance Coverage
While full coverage is a term that has been used by agents and consumers for a number of years, there is no such thing as “Full Coverage”. With that said, however, you can see from the outline above that you can opt for broader coverage with higher limits of liability to provide more protection should the unexpected happen.
By now you have a good understanding of the options available to you. But that doesn’t mean you’re on your own. Just like the advice you asked for when choosing the right bike, don’t be afraid to ask for advice when choosing the right insurance coverage. Our agents will be happy to help you choose the coverage, as well as the right insurance company.