Best Motorcycle Insurance


Reviewed by Grant Desselle
Reviewed by Grant Desselle
Table of Contents
Definition: A motorcycle insurance policy is a contract between a motorcycle owner and an insurance provider for protection against motorcycle-related risks at the cost of an agreed-upon premium. Such risks may include damage, injuries, theft, damage caused to a third party, fire, gear, special equipment, accidents, towing and roadside assistance, bodily injury coverage for a passenger, medical costs related to an accident, vandalism, weather events, falling objects, loss of income, and replacement.
Buying a motorcycle is often a precursor to some exciting days ahead. Whether you want a motorcycle to weave your way through traffic or for outdoor excursions, you’ll surely enjoy your new bike.
However, motorcycle riding isn’t all bliss. There are risks involved because motorcycles are:
All of these factors not only put you at risk for an accident but can also intensify the consequences. As a result, beyond being cautious while on the road, you need a safety net in case the unthinkable should occur. That safety net is motorcycle insurance. While you may not be keen about piling on additional costs after buying a bike, it’s essential to have this coverage.
To satisfy state laws, at a minimum, liability coverage is required. This includes liability coverage for:
Bodily injury per person / Bodily injury per accident / Property damage
It is mandatory for motorcycle owners to have at least minimum insurance coverage in their home state. This applies to all street-legal bikes. As you can see in the table above, the minimum requirements vary slightly from state to state.
Since dirt bikes are classified as off-highway vehicles (OHVs), you can’t insure them with a typical motorcycle policy. Though it varies from one state to the next, the general requirement for dirt bikes is insurance for bodily injury and property damage. In some states, such as New Jersey, you also need to register a dirt bike.
If you want more coverage, insurance providers offer a wide range of packages. Motorcycle insurance is suitable if you want to limit your liabilities in terms of:
The amount of liability coverage is usually stated in terms like “25/50/10.” In most states, motorcyclists must have at least $25,000 in bodily injury protection per person, $50,000 per accident, and $10,000 in property damage coverage.
Generally, motorcycle insurance is for individuals who own motorcycles, including dirt bike owners and motocross racers. The purpose is to protect the person who owns the motorcycle, their investment in the bike, and possibly passengers.
The only type of motorcycle that doesn’t require insurance coverage is a motor bike for small kids.
You do not need motorcycle insurance if you don’t own a motorcycle, even if there’s a risk of being involved in a collision with a motorcycle.
It’s important to note that an insurance company can deny you coverage for a motorcycle. This can happen if:
Nationally, the overall average cost for motorcycle insurance is $519 a year, according to J.D. Power’s NADA guides. Since that’s the average cost, the price you’ll end up paying could be higher or lower. And, if you want full coverage, the cost can go up by several hundred dollars or more, as that average is $1,773 annually.
The first thing you should know when buying coverage is that motorcycle insurance premiums are issued on an individual basis. As such, what you end up paying will likely differ from what someone else with a similar bike in your city pays. A key factor is the level of coverage you want. Insurers will also evaluate other information to determine the level of risk you pose.
If your risk factor is high, your premiums will be too. Some factors an insurer will consider when calculating a premium for you include:
Your bike is also a key factor in how much your insurance will cost. Insurers will take into account the type of bike, as well as its value, theft rating, safety rating, and engine size.
Generally, bikes intended for road use cost more to insure than other types of bikes. This is because dirt bikes and sport bikes are used on nature trails and racing tracks, away from other motorists, which reduces the risk.
This is why the average cost of insuring a dirt bike in the U.S. is $99 a year, while a standard motorcycle policy is $519 a year.
The key to getting the most out of your motorcycle insurance coverage is understanding how it works. Its purpose is to protect you from liability if you cause an accident. Beyond this, it can also cover damage to your bike.
After your motorcycle insurance application has been reviewed, you’ll receive a quote. Once you sign the insurance policy, you’ll be required to pay the premiums for the duration of your coverage. Should any of the events your policy covers occur, the insurance provider will foot the bill. This reduces the risk on your part.
For the insurance company, this contract with you is an opportunity to make money — you pay the premiums whether an incident occurs or not.
But what if you are involved in an accident, and the cost of repairs exceeds your premiums? This is where the concept of pooling risks comes into play. When this happens, the insurance company will use the proceeds from other policy owners who have not been involved in an accident.
Generally, insurance providers price their policies in relation to the likelihood of such incidents occurring. As a result, even after paying valid claims, they are able to make a tidy profit.
While you may be eager to take your new bike for a spin, getting insurance coverage first is advisable. Know that different coverage options are available. When making a choice, consider your needs and your intended use of the motorcycle.
Such options include:
In addition to the options above, there are some other types of coverage you may be interested in, such as:
There’s no denying that modified bikes have a unique appeal. However, before buying a modified bike or making modifications to a bike you own, remember that you’ll have to pay a higher premium. This is true for at least two reasons:
Determining the right motorcycle coverage can be challenging, as there are many things to consider. Still, it’s a step you can’t afford to get wrong. Here’s a breakdown of why certain options may be suitable for you:
As you determine which insurance package to purchase, there are key considerations you should make:
For many riders, a combination of minimum and collision coverage is a popular choice. If you want the cheapest option, go for just the minimum coverage. But for the highest level of protection, you’ll need a policy that also includes collision, comprehensive, and UM/UIM insurance.
Beyond choosing the right insurance coverage for your needs, you also want to get as much value as possible. This may mean getting the best rate, additional perks, and a reliable provider. In this regard, you should know:
When it comes to motorcycle insurance policies, there are plenty of options and providers. Going in person to each company’s office would be tedious and time-consuming. Instead, you can search for providers and fill out forms online.
If you want to simplify the process even more, you can use an independent insurance agency. Another benefit of choosing an independent agency is access to special discounts.
While an affordable rate and some perks on your policy are excellent to have, they’re not the most important things to consider when purchasing insurance coverage. For you to get actual value from your policy, the provider must be reliable. In this regard, consider the following:
When applying for motorcycle insurance, it’s essential that everything is done correctly. Otherwise, your policy may become invalid, or it may not provide the necessary coverage. Some critical mistakes to avoid include:
In your search for motorcycle coverage, you want to get the right policy, from a trustworthy provider, and at the right price. To achieve all of this, you need to go about it methodically. Here are some steps you should follow:
At this stage, it’s important to keep your options open. Even if you have an insurance provider and they offer a decent discount, you should evaluate other offers too. You can also request bundled offers for all of your insurance needs from a new provider.
When buying motorcycle insurance, people often have a lot of questions. Here are some of the most common ones:
To put it simply, yes. In each state, there are bare minimum insurance requirements for motorcycle owners. If you want to know the specific state minimum motorcycle liability insurance requirements that apply to you, check out your state’s DMV or Department of Insurance website.
Your auto insurance only covers accidents or damage involving your car or truck. However, you can call your auto insurance provider and bundle the policies to receive a better rate.
The national average annual cost of motorcycle insurance is $519, but you could pay more or less than that. Among the factors that will affect the rate you’ll pay are your age, location, and driving record.
Although motorcycle insurance is mandatory, try to look at it as an opportunity to reduce or eliminate your liabilities. While you may be a careful rider, others on the road may not be. Each time you’re out on the road, there are risks.
Having motorcycle insurance, depending on the policy you choose, can cover the cost of repairs, medical treatment, and time off from work. It can even replace your bike if need be. So, it’s all about how much you want to protect yourself and your bike.