Motorcycle Insurance Coverage

Motorcycles are statistically more prone to accidents compared with four-wheelers. The severity of physical injuries in motorcycle related accidents may also be higher. Considering these facts, it may be prudent to buy adequate motorcycle insurance coverage. Motorcycle owners should compare various policy options available in the market and choose the policy that matches closely with their needs. Online price comparisons can also help to choose the most competitively priced policies. Some of the recommended motorcycle coverage options are discussed here.

Bodily Injury and Property Damage Liability

This is the most important and mandatory insurance coverage that provides risk coverage against legal liability in the event of an accident that involves physical injury to another person or damage to the property of another person. Minimum liability limits are imposed by the state, but it is advisable to choose an appropriate limit of liability according to the individual’s affordability as well as personal net worth and assets. The chosen limits of the policy imply that in a given year a loss up to the policy limit will be reimbursed by the insurance provider.

Comprehensive and Collision Coverage

This motorcycle insurance coverage option includes the costs of repair or replacement of the vehicle in case it is damaged in an accident or stolen. This policy does not put a condition on reimbursement, and will pay irrespective of who was at fault. Collision coverage covers the risk of collision with another vehicle or an object. Comprehensive coverage covers the risk of property damage or loss that may arise out of vandalism, fire, theft, or other such events. No one can predict whether or not something like this will happen.

Uninsured and Underinsured Motorist Coverage

If the motorcycle driver suffers personal injuries due to the fault of another driver who may be uninsured or under-insured, this coverage will cover the costs arising out of such an accident. The costs of medical treatment, damages for pain and suffering and compensation for lost income may be recovered from the insurance company with this coverage. If the partial amount is recovered from the at-fault driver, the difference will be reimbursed by the victim’s uninsured and under-insured insurance policy.

MedPay Coverage

Medical payments coverage or MedPay covers the costs of the medical treatment arising out of a motorcycle accident, irrespective of who was at fault. MedPay reimbursement is capped by an upper limit and is usually limited to treatments received within the first three years following an accident. MedPay may apply once other health policies have been exhausted.

Custom Parts and Equipment (CPE)/Accessory Coverage

Comprehensive or collision coverage typically includes custom parts and equipment/accessory coverage for a minimum amount of $1,000. However, motorcycle owners with expensive custom vehicles may buy additional CPE coverage to reduce their risk of loss. CPE coverage for motorcycles includes the cost of custom devices, enhancements, accessories, and other modifications that may enhance the performance or appearance of the motorcycle. Motorcycle owners should preferably maintain photographic evidence of the customized vehicle as well as receipts and invoices of the alterations and additions made to the vehicle.