What Does Motorcycle Insurance Cover?
Most states require riders to have bodily injury and property damage liability insurance as part of their motorcycle insurance policy. In addition, there is a long list of optional coverages available, such as comprehensive and collision insurance. Which motorcycle insurance coverage you should buy will be determined by the value of your bike, whether you want coverage for your own injuries in the event of an accident, and how much protection you want for your belongings.
How does motorcycle insurance work?
Motorcycle insurance, like car insurance, protects you financially in the event of an accident or damage to your vehicle while driving. A typical motorcycle insurance policy includes liability insurance, which pays for any damages you cause to others, but it can also cover your own bike and injuries. If you own more than one motorcycle, you can get a multi bike policy and often get a discount from your insurer.
However, if you ride a different bike, such as while travelling or borrowing one from a friend, your motorcycle insurance may not fully protect you. If you are involved in an accident, your liability insurance will typically follow you and act as either primary or secondary coverage. However, if you have any questions about what your policy covers when riding on another bike, you should contact your insurer.
Motorcycle liability insurance
Most states require motorcycle riders to carry two types of liability insurance: bodily injury and property damage liability coverage. These, as the names suggest, cover any injury or damage caused by a motorcycle rider to a third party while operating their vehicle. Liability for bodily injury and property damage does not extend to you (the rider) or the motorcycle itself.
In the event of a collision, a third party will typically file a liability claim against your insurance company for any damages you are thought to be responsible for. As a result, liability insurance is also known as third-party insurance.
Every motorcycle insurance policy has a cap on how much money it will pay out to others for bodily injury and property damage. Limits are frequently displayed with slashes between them, such as: $25,000/$50,000/$10,000. The first number is the claim limit, or the maximum dollar amount an insurance company will pay out per injured person following a collision. The second figure represents the claim limit per accident. The third number is the claim limit, which is the amount of money a policy will pay to another party for property damaged by the policyholder or rider.
Each individual accident has a claim limit for personal property liability. For example, if a motorcyclist collides with the side of a car and damages it, this would cover the cost of the repairs up to the rider's chosen limit. Property damage liability insurance also covers damage to other vehicles. If a motorcycle driver collided with a fence and caused enough damage that it needed to be repaired or replaced, that would also be covered, up to the coverage limit.
Personal property claim limits are typically much lower than the two limits for bodily injury claims. A policy with a $25,000 BI limit and a $50,000 per accident limit may only have a $10,000 limit for property liability insurance.
Guest passenger liability coverage
The only significant difference between motorcycle and auto insurance in terms of bodily injury and property damage liability coverage is that some motorcycle policies include an additional coverage: guest passenger liability insurance. Guest passenger liability insurance protects any passengers who are injured while riding on your motorcycle.
Guest passenger liability coverage is required in some states for motorcycle liability insurance policies, which protects anyone riding on the back of your motorcycle. However, if your motorcycle insurance policy does not already include guest passenger liability, it is usually available as an add-on. Separate protection for any passengers on your bike is a good idea, especially if you ride with others frequently.
SR-22 and FR-44 insurance for motorcycles
If you've had certain motor vehicle violations, such as a DUI, you may be required to file an SR-22 or FR-44 certificate of financial responsibility before you can drive legally. You are unable to file this form on your own. Instead, an insurer must do it on your behalf in order to demonstrate that you have purchased the minimum amount of coverage required by the state.
Because SR-22 and FR-44 motorcycle insurance are not offered by all insurers, you may need to request quotes from multiple motorcycle insurance companies to find coverage, as these forms indicate you're a higher-risk rider.
Optional types of motorcycle insurance coverage
Liability-only motorcycle insurance policies are frequently less expensive than auto insurance policies. However, because motorcycle liability insurance does not provide financial protection for your own injuries or damage to your bike in an accident, you may want to consider adding a variety of additional coverages.
Medical payments and personal injury protection (PIP)
Medical payments coverage, similar to health insurance, is a type of motorcycle insurance that covers the cost of medical bills for you (the rider) if you are injured while riding your motorcycle. It protects the rider regardless of who is at fault in the event of an accident. That is, regardless of whether you crashed into a bush or were hit by another vehicle, your medical bills would be covered up to the policy's limit. Medical payments coverage is optional, and riders can select from a variety of claim limits.
Motorcycle riders in some states have the option of purchasing PIP insurance. It is similar to medical payments coverage in that it can cover a wide range of costs incurred as a result of an injury, such as lost wages, funeral costs, and child care expenses.
Uninsured/underinsured motorist insurance
Motorcyclists can add uninsured/underinsured motorist coverage (sometimes abbreviated to UM/UIM) to their motorcycle insurance policies, though it is not generally required. It protects you as a rider against injuries as well as damage to your bike caused by another driver who is underinsured. Whether the driver lacks liability insurance or the cost of your damages exceeds the limits of their policy, this coverage picks up where their coverage leaves off.
Uninsured/underinsured motorist bodily injury coverage typically pays for medical bills, lost wages, and other damages incurred by a policyholder if the other party involved is not adequately insured. However, some insurance policies exclude personal property damage from their UM/UIM coverage. You would also have to choose uninsured/underinsured motorist property damage coverage.
Full coverage motorcycle insurance: collision and comprehensive
Complete coverage Motorcycle insurance is a policy that includes liability insurance as well as comprehensive and collision coverage for your motorcycle. Comprehensive and collision insurance differ from property liability insurance in that they cover your own losses if you are in an accident or your bike is damaged. These policies are required, but they are usually worth the money if your bike is new or would be expensive to repair.
In the event that your motorcycle is involved in an accident with another vehicle or an object, collision coverage will pay for the cost of repairing or replacing your motorcycle, less your deductible. It usually covers up to the Kelley Blue Book value of the motorcycle, which is the average price of the same bike for sale across thousands of dealerships in the United States, rather than a claim limit that is a specific dollar amount.
Comprehensive motorcycle insurance covers the costs of repairing or replacing your motorcycle in the event of almost any event other than a collision. For example, if your bike was damaged in a fire or storm, vandalized, or stolen, it would be covered under comprehensive coverage. This coverage is valuable even when you're not riding the bike, so we recommend keeping it in place even when you're not riding it.
Keep in mind that collision and comprehensive insurance typically only cover the cost of factory or standard parts. Unless you add specific coverage for it, any additional parts, features, paint jobs, graphics, or other additional equipment will most likely not be covered by your motorcycle insurer. Coverage for these types of upgrades, if available, would typically necessitate the purchase of a separate policy or endorsement.
Total loss coverage for motorcycles
For motorcycles that are totaled in a crash, some insurance companies provide total loss coverage, which is similar to gap insurance. Regardless of the bike's book value, the insurer will pay the suggested retail value toward its replacement, minus your deductible. Because new motorcycles lose value the moment they are driven off a lot, this could mean a significant difference in the amount an insurance company pays out for a crash.
Because insurance companies will not replace bikes that are worth significantly less as they age, total loss coverage may only be available for the first few years of a vehicle's life. However, if you've recently purchased a new motorcycle, this can be especially useful coverage.
Motorcycle repair insurance
Motorcycle repair insurance, also known as mechanical breakdown insurance, is a supplemental policy that pays for certain covered repairs to your motorcycle. It works similarly to an extended warranty in that you pay a premium and, if your motorcycle requires a repair, such as replacing the engine or transmission, the policy covers repairs made at your local repair shop. You may be required to pay a deductible per visit, depending on your policy.
Carried contents and personal belongings coverage
Contents and personal belongings coverage applies to items carried on your bike while riding. Items such as your tools and motorcycle gear, cell phone, and other items you carry would be covered if they were lost, damaged, or stolen under this policy.
For example, if a motorcyclist has a backpack containing clothing or other valuables that is lost or stolen, they are protected. To qualify for a claim, contents and personal belongings do not have to be stolen or damaged in a crash. They could unintentionally fall off a motorcycle and be considered lost, in which case they would be covered.
Roadside assistance and towing insurance
Roadside assistance and towing insurance are optional coverages that can be added to motorcycle insurance policies in exchange for a higher premium. Roadside assistance programs will frequently tow a motorcycle to the nearest shop for free or at a reduced rate. They also usually include free delivery of water, oil, or fuel and cover battery failure, flat tires, or mechanical or electrical breakdown. Riders thinking about purchasing this optional coverage should make sure they don't already have these benefits through another source, such as a AAA membership.
Other vehicles covered by motorcycle insurance policies
Motorcycle insurance policies can be used to cover a wide range of vehicles in addition to motorcycles. In some states, these vehicles must be insured in order to be legally driven, so we recommend checking your local laws and considering coverage to protect your vehicle—whether it's required or not.
Mopeds and scooters
Mopeds and scooters perform and operate similarly to motorcycles, and some states require them to be covered by motorcycle insurance policies in order to be legally driven.
Most states, like motorcycle owners, require moped and scooter owners to have some level of bodily injury and property damage liability insurance. Moped and scooter drivers often have access to the same optional motorcycle coverages as motorcycle drivers, in addition to the required liability coverage. Medical payments, uninsured/underinsured motorist, collision, and comprehensive coverage are all options for moped and scooter drivers.
Trikes and motorcycles with sidecars
Because they are similar to a traditional motorcycle with a third wheel, three-wheeled motorcycles, also known as trikes, are typically covered under motorcycle insurance policies. A traditional motorcycle insurance policy will cover motorcycles with sidecars. Trike owners have access to the same insurance options as motorcycle owners.
ATVs
Most motorcycle insurance policies will also cover all-terrain vehicles. Many ATV owners choose not to purchase motorcycle insurance because, unlike scooters or trikes, ATVs are not always required to have it. Most state-owned parks that allow ATVs, however, require insurance, and we recommend having one in case your ATV is damaged or a rider is injured.
What does motorcycle insurance not cover?
Certain motorcycle uses may be excluded from coverage depending on your policy. In these cases, you may be able to extend the coverage of your policy through a rider or endorsement, or you may need to purchase a separate policy.
- Track Days & Competition: Some motorcycle insurance policies include coverage for track days, but this is not always the case. If you plan to ride your motorcycle on the track or competitively, you should first check with your insurance company to see if these situations are covered. Otherwise, we recommend that you purchase temporary coverage to keep you and your bike financially protected while riding on a course.
- Commercial Use of Your Motorcycle: If you work as a courier or otherwise use your motorcycle for business, your individual policy may not cover you while on the job. If you use your bike for work purposes other than commuting, you should consider purchasing a commercial vehicle insurance policy.