What Motorcycle Insurance Typically Covers

Whether you're a seasoned rider or purchasing your first bike, knowing what motorcycle insurance actually covers (and what it doesn't) is a vital part of traveling on two wheels.

Here are the basics of motorcycle insurance. 

How motorcycle insurance is different 

Motorcycle insurance differs from auto insurance in part because riding a bike poses a greater risk than driving a four-wheeled vehicle. According to the National Highway Traffic Safety Administration, motorcyclists are five times more likely to be injured in a crash than passenger car occupants. 

As with other vehicles, nearly every state requires riders to have an insurance policy that includes liability insurance. But as with cars, bike owners may also need additional coverage.

Although motorcycles are usually cheaper than four-wheelers, they're still a significant investment. While a basic motorcycle can cost less than $10,000, premium bikes can cost well over $35,000. 

To protect your motorcycle and yourself from liabilities, it's important to have the right coverage. 

Standard coverages under motorcycle insurance

A motorcycle insurance policy may include a combination of the following types of protections: 

• Liability coverage: In most states, motorcyclists are required to have bodily injury and property damage liability coverage. These forms of coverage pay for injuries or damages if you're at-fault in an accident and the other driver or passenger is injured. The liability requirements for motorcycles may differ from those the state sets for policies for cars and other vehicles. 
• Motorcycle collision: If you're in an accident and your motorcycle is damaged, collision coverage helps pay for its repairs. If you bought your bike with a loan or are leasing it, you're likely required to have collision insurance. 
• Comprehensive coverage: Comprehensive insurance pays for non-collision damages, like storm damage or vandalism. It's usually optional, unless your motorcycle was financed or leased. 
• Medical coverage: Personal injury protection (PIP) or medical payments coverage (MedPay) helps cover the cost of medical expenses you or your passenger experience in an accident. In some states, medical coverage is required. However, in some states, PIP and/or MedPay coverage is excluded for motorcyclists.
• Uninsured or underinsured motorist coverage: This form of coverage helps pay for damages to your bike if you're in an accident and the other driver doesn't have insurance or has inadequate coverage. It's required in some states. 

A full coverage motorcycle insurance policy would include liability, comprehensive and collision insurance. In states where medical coverage and uninsured or underinsured motorist protection are required, a full coverage policy would include those types of insurance, too. 

Optional coverages for added protection

There are also optional insurance endorsements or add-ons to your policy to further protect your motorcycle, such as:

• Roadside assistance: If your motorcycle breaks down, roadside assistance can cover fuel delivery, tire changes and more. 
• Rental reimbursement: If your bike needs repairs after an accident, rental reimbursement can cover the cost of renting a vehicle. 
• Guaranteed asset protection (GAP): GAP insurance pays the difference between the motorcycle's actual cash value and your remaining loan balance if the bike is declared a total loss. 
• Custom equipment: If you installed aftermarket parts or accessories, such as chrome fender trim, custom equipment insurance will help cover their cost if they're damaged in an accident. 
• Electronic equipment: Electronic equipment insurance will help cover damage to electronics like the motorcycle's sound system or GPS.

Motorcycle coverage: Real-life scenarios

Here is how motorcycle insurance can protect you and your bike: 

• An unexpected rainstorm hits, and your motorcycle slips on the wet roads. You lose control and slide off the road and hit the guardrail. Collision insurance would pay for repairs to the bike's frame and other accident-related damage to the bike.
• You're in an accident with a vehicle. You live in a state that requires at-fault insurance, as most jurisdictions do, and you're found at fault. The other car has minor damage to the front; your liability coverage would pay for the damage to the other driver's vehicle. 
• Your area experiences a heavy blizzard. The snow and wind causes a tree branch to fall onto your bike. Comprehensive motorcycle coverage covers the repairs for structural or cosmetic damage to your bike. 

Getting the right protection at the right cost

Apart from purchasing the right insurance coverage, you ideally want to pay the right price for it. Knowing how rates are determined and possible discounts can help you understand the cost of your policy and potentially help you save on it.

Factors that affect your motorcycle insurance cost

Besides what coverage options you choose, the following factors are among those that affect your motorcycle insurance premiums: 

• Age and price of motorcycle: Newer, more expensive motorcycles will usually be more expensive to insure than older models. 
• Location: Premiums can be affected by factors like the traffic density and rates for accidents and crime where you live.    
• Age: Younger motorcycle riders will pay a higher premium because they have less experience on a bike (and, data shows, are more likely to be in an accident). 
• Driving record: Motorcyclists with driving records with speeding tickets or at-fault accidents will pay higher rates.
• How much you ride: The number of hours and miles you spend in the saddle, and when, within a year naturally affects the size of your premium. 

How to save on motorcycle insurance

You may be able to save money on your motorcycle insurance premiums with these tips: 

• Take a safety course: Some insurance companies will give you a premium reduction if you complete a motorcycle safety course. 
• Bundle your coverage: You may be eligible for a multipolicy discount if you purchase more than one type of insurance from a company, such as motorcycle insurance and auto insurance, or one or both of those along with coverage for your home. 
• Raise your deductible: Your deductible is how much you have to pay to repair your motorcycle before your insurance company will help with the cost. The higher your motorcycle insurance deductible, the lower your premium will be.  
• Ask about discounts: Talk to your agent about potential discount programs. You may be eligible for discounts like those for autopaying your bill or going accident-free for a certain period of time.