Basic Types of Motorcycle Insurance Policy

While some people think that a motorcycle insurance is an additional expenses, this can be very helpful in the event of an accident, regardless of who is at fault. With an insurance policy, people can pay the hospital bills and have their vehicles repaired without having to spend their own cash or liquidate their assets.

Types of Motorbike Insurance Coverage

• Bodily injury liability – This will help people who cause the accident to pay the victims’ hospital bills and loss of wages. In most states, this coverage is mandatory and requires a person to have at least $10,000 worth of coverage.

According to insurance experts, it is ideal to purchase an insurance policy which is three times higher than the state’s minimum amount for bodily injury liability.

• Property damage liability insurance – This will help at-fault drivers to pay for the repair or replacement to the damaged property.

• Guest passenger liability – Also for at-fault motorcycle riders, this coverage will help them pay for the guest passenger’s hospital bills and loss of wages.

• Underinsured motorist – This type of coverage is very important in case that the at-fault driver’s insurance is not enough to cover the victim’s hospital bills and other expenses.

For example, the driver who caused the accident has an insurance that covers $15,000 but the victim’s hospital bills is worth $25,000. With this underinsured motorist coverage, the victim will have other sources to pay for his expenses.

• Uninsured motorists – This is considered to be one of the most important coverage given the fact that approximately 40 percent of drivers are uninsured. With this insurance policy, people can pay their own expenses in the event of a motorcycle accident.

• Comprehensive coverage – The insurance company will pay for the cost of repair or replace the motorcycle in case that it is damaged in an accident or stolen. (In this coverage, it is not important who is at fault.)

• Collision coverage – Regardless of who is at fault, the insurance company will pay for the motorbike repairs. However, this will only cover factory parts and not other accessories (e.g. the owner has added such as chrome in wheels).

• Medical payment coverage – The insurance company will pay for the hospital bills of a policy holder who sustains injuries caused by motorbike-related accidents, regardless of who is at fault.

• Custom Parts and Equipment (CPE) coverage – This insurance is included when a person purchase physical damage liability coverage. Furthermore, this usually covers accessories, equipment, enhances, and other devices which are not original parts of the motorcycle.

• Roadside assistance coverage – This covers the towing and repair services bills after a motorcycle has been disabled due to dead battery, mechanical breakdown, flat tire, poor road condition (caused by snow, sand, mud), and insufficient supply of fuel, water, or oil.

By: Nemelou Despuez

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