Just like with automobile insurance, every state requires anyone who rides a motorcycle to have at a bare minimum liability insurance to cover medical costs and property damage of another party if the motorcyclist if found at fault in the accident. Additionally, if the motorcycle is financed, the finance company will likely require the motorcyclist to carry comprehensive and collision coverage as well. While there are similarities between purchasing automobile and motorcycle insurance coverage, knowing the differences can save money while making sure you have adequate coverage for your needs.
Determining the Right Type of Motorcycle Coverage
The type of coverage a motorcyclist needs depends on how the motorcycle is used. For example, if a motorcyclist does not have another person riding on the bike, then it is possible to opt out of coverage to insure a passenger. For motorcyclists in the colder regions of the country, it is possible to get coverage for the months that the motorcycle is not in storage. If the motorcycle is older and not financed, it might not be worth carrying collision and comprehensive insurance, since the cost of the premiums and the deductible will likely exceed the amount the motorcycle is worth.
Finding Motorcycle Coverage to Fit Your Budget
The means to saving on motorcycle insurance premium starts with understanding what determines the rate the insurance company charges for motorcycle insurance. The calculations start with the type of motorcycle owned. The premium rate is higher for sports models of motorcycle, so even though the new great looking bike with all the speed features might impress others, it will depress a bank account balance with the insurance payments as compared to a standard older motorcycle. Age also plays a fact or in determining the rate a motorcyclist pays; those who are in their 20's pay higher rates than older motorcycle riders pay. In addition, the amount of the deductible affects the insurance premium, if you can carry a higher deductible, in essence self-insure for minor accidents; it is possible to pay a lower premium.
Keeping Low Rates for Motorcycle Coverage
Once motorcycle coverage is obtained, strategies exist to keep insurance premiums reasonable and even reduce them. When a motorcyclist has small claims, it is better to go ahead and pay the expense rather file a claim because the insurance carrier considers each claim filed as evidence as increased risk. Additionally, check your driving record periodically as error can arise just as they do in credit reports. As a point of information, the credit score of a motorcyclist also affects insurance rates so try to maintain a good credit score.
While it make little sense to over pay for insurance coverage, it is wise not to underinsure either, since the motorcyclist will be held financially responsible for any expenses not covered by insurance.