Motorcycle insurance coverage options

Coverage options for motorcycle insurance are similar to the standard  ones you’ll find for auto insurance. In addition to liability and  uninsured/underinsured motorist coverage, most insurers offer these  options:

• Collision: Pays out for damage to your motorcycle,  minus your deductible amount. A deductible is the amount you select when  you buy your policy that’s deducted from a claim check.
• Comprehensive: Pays out if your motorcycle is  stolen or damaged by something other than a collision with another  vehicle. Animal collisions are covered. A deductible applies.
• Medical payments (MedPay): Not available in all  states, medical payments coverage pays for medical bills if you and your  passenger are injured in an accident. Unlike personal injury  protection, medical payments coverage doesn’t cover lost wages and other  costs. Let’s state the obvious: Driving or riding a motorcycle comes  with risks, no matter how careful you are. Medical payments coverage can  come in handy if you don’t have health insurance or you don’t have  enough.
• Personal injury protection: Generally pays out for  medical bills for injuries you, your passenger or pedestrians suffer in  an accident regardless of who’s at fault. (Rules vary by state.)  Although some insurers offer PIP, some states may not allow insurance  companies to sell the coverage to motorcyclists because of their high  rate of accidents.

Insurance companies typically offer add-on options, although some may  offer one or more as part of their standard policies. For some of  these, limits and deductibles apply.

• Trip interruption coverage: Pays out for lodging,  transportation and food if your bike is disabled in a collision far from  home, usually defined in your policy as 100 miles or more.
• Coverage for custom parts, equipment and accessories: In  most states, insurers include some custom parts and accessories  coverage with comprehensive and collision insurance — typically up to  $3,000, though the amount can vary. For many riders, however,  customizing a bike is part of the lure of owning a motorcycle. If the  chrome parts, saddlebags and personal touches you add to your bike are  worth more, you can buy additional accessories coverage, usually up to  $30,000.
• Transport trailer coverage: Many insurance companies offer coverage for trailers valued at up to $7,500.
• Roadside assistance: Includes towing and labor at the site of your bike’s breakdown.

 Many insurers offer what is called lay-up insurance during winter, when  many drivers put their motorcycles away. During the lay-up period,  insurance still covers you against theft and other events that can  happen while your bike is in storage. Lay-up coverage saves on your  annual insurance costs, but keep in mind that if you take the bike out  on the road during the lay-up period, insurance won’t cover you in an  accident. 

Discounts vary by insurance company. Here are some of the most common ways to get a price break:

• Buy another type of policy, such as auto or homeowners insurance, from the same insurer.
• Maintain a clean driving record. 
• Insure more than one motorcycle with the same insurance company.
• Complete a motorcycle rider training course.
• Belong to a motorcycle riders organization.
• Ask about a mature rider discount if you’re over 55 or a longtime rider. 

One of the most important things to understand about your motorcycle  policy is how it pays out if your bike is destroyed or stolen. There are  three types of settlements. These are:

• Actual cash value: Pays out the cash value of what your bike is worth, minus depreciation and your deductible.
• Stated amount: Pays the amount you selected when you bought the policy.
• Agreed value: Pays the amount you and the insurance  company agreed on when you bought the policy. The amount remains fixed,  and no deductible is taken from a claim check. Owners of custom or  classic bikes are generally offered agreed value or stated amount  coverage.