In most of the sates it is mandatory to have liability insurance for motorcycles. The liability insurance is the cover for the personal injury and property damages caused to others. If the motorcycle is bought using as loan from a lender, surely, the lender would insist on a comprehensive policy to cover the damages for the motorcycle itself.
Insurance cover
There are mainly three types of motorcycle insurance cover. They are the liability insurance, collision insurance and comprehensive insurance.
- Liability insurance covers only the liability of the insured for the personal injury and property damages caused to others by the motorcycle. It is the cheapest motorcycle insurance and mandatory in almost every state.
- Collision insurance covers all the damages of your motorcycle in the event of an accident. All the costs of repair and parts replacement are made good by the insurance company provided they are warranted by an accident.
- Comprehensive insurance is really a comprehensive one. It covers all the damages to others, you and your motorcycle. If the motorcycle is damaged beyond repair by fire or accident or stolen or vandalized by others, then the insurance company replaces the vehicle. Make sure that the policy does not say that adjustment will be made for the depreciation of the motorcycle in case of a replacement. This is particularly important when the insured has a very expensive motorcycle. Read the small prints carefully in the policy.
Insurance costs
The cost of motorcycle insurance depends on many factors. The factors are the make and age of your motorcycle, the size of the engine, the purpose for which you use the bike, the distance it covers annually, the area where you live and the history of your driving license. If the vehicle is sparingly used like household shopping the insurance premium is low. In case your bike is a high powered, expensive fancy machine, it is a trophy in itself. It is likely that the insurer may charge you a very high rate. It is more so if the machine is decorated with all the ornamental fittings. This is because the insurer has to shell out a fortune to replace these expensive fittings when you meet with an accident.
Comparison with car insurance
Insurance companies calculate the premium for both cars and motorcycles based on the risk they cover. There are no excess charges for bikes specially. As in the case of car insurance you can get your bike insurance premium reduced considerably by agreeing for deductibles. The more the deductibles, the lesser will be the premium. But beware, when there is a claim you will have to pay first the deductible amount. The company bears only the balance. In other words there is no cover for the deductible amount. If you have a creditable driving record the insurer will be happy to give you a discount. Likewise, a good credit score also helps.
If you own an expensive motorcycle which requires extensive insurance cover, shop around on the internet. It costs nothing. You may find some good offers online.