Motorcycle Insurance: 6 Ways to Save

 

Motorcycle riders are a breed apart from your typical car drivers, glad to feel the wind in their face and undeterred by the warnings from mom about the dangers you'll find lurking around every corner.  Sure, bike riding can be risky and a serious accident on two wheels can be much more devastating than when driving on four, surrounded by a steel cage with safety add-ons like airbags.  But for careful riders with proper safety gear, a registered motorcycle safety course under their belts and a healthy respect for the risks of the road, motorcycling can be a great way to go.

Ensuring You've Got Proper Insurance

One critical piece of your motorcycling protection is having the proper motorcycle insurance in place.  In North Carolina, every vehicle being driven on public roads is required to have at least a minimum amount of basic liability insurance in case you're the cause of an accident that injures or kills another person or causes damage to someone else's property.

While it won't save you money on the cost of your insurance, carrying more than the required minimum amount of liability coverage could save you a huge amount of money in the event that you're found responsible for causing an accident where someone dies or is seriously injured and you become the defendant  in a liability suit.  Judgements in these types of suits can run into the thousands, hundreds of thousands or even millions of dollars.  Your best protection is to carry five or ten times the required amount of bodily injury liability insurance.  You may also want to consider an umbrella policy for the best all-around liability protection.

Here are six ways to save on your motorcycle insurance:

1. Always shop around and get quotes from several insurers.  It doesn't make sense to pay higher rates charged by one company when another insurer provides the same service at a lower price.  
2. Older, smaller, slower bikes will have lower insurance costs.  Choose your bike wisely.
3. If you only ride occasionally, ask for an infrequent rider discount.  While you're at it, find out about every discount offered.  There may be several.
4. If your bike isn't worth too much, dropping your comprehensive and collision coverage will save bucks.  If your bike has a lienholder, however, this won't be possible.
5. Raise your deductible.
6. Keep your bike secure with chains, locks and/or alarms.  Keep it garaged when not being used.

Is Motorcycle Insurance Required?

 

North Carolina state law requires that all motor vehicles operated on public roads within the state be covered by at least a minimum amount of liability insurance.  This includes motorcycles and motor scooters.  While there are a variety of other insurance coverages available to motorcycle owners, only liability coverage is made mandatory by state law. 

Liability insurance is what helps protect you from financial losses if you are found legally responsible for causing losses to others while operating your motorcycle.  These losses can be in the form of physical injuries, death or property damage/destruction.  The state has set minimum requirements for the amount of mandatory liability coverage which are as follows:

1. Bodily injury coverage - $30K per person per accident and $60K for all persons per accident
2. Property damage coverage - $25K per accident

How Much Do You Need?

While these above outlined dollar figures are the minimum amounts of coverage required, you may elect to have higher limits on your policy.  This makes sense, since an accident for which you are held liable can amount to many times these minimums.

Motorcycle liability insurance helps pay for third-party injury expenses including medical costs, lost wages, funeral costs (in the event of a death) and even long-term disability costs.  It also pays for property damage, including damage other vehicles suffer.  It may also pay toward the costs of defending you in court if you're subject to a liability suit.

With liability coverage only paying up to policy limits, it's obvious that any accident you cause could end up costing you many, many times your policy limit if you're only carrying the minimum liability amounts.  Experts recommend you buy five to ten times the required amounts, depending on how much in assets you need to protect.  You might also consider adding an umbrella policy to your coverage.  These policies typically have limits starting at one million dollars.

Additional, Optional Motorcycle Coverage

Although not required by law, there are a number of other types of motorcycle insurance coverage that are highly recommended for anyone riding on two wheels.  Statistics tell us that the majority of motorcycle insurance claims are for single vehicle accidents where liability coverage doesn't come into play.  Cyclists should consider the following:

• Collision coverage
• Non-collision (or comprehensive) coverage
• Uninsured/underinsured motorist coverage
• Medical payments coverage

Some insurers will offer lower premiums for lay-up insurance when your bike is stored away for the winter.

Does Motorcycle Insurance Cover Other Riders?

The question of whether or not other riders are covered by your motorcycle insurance while on your bike is a tricky one and depends a great deal on the specifics of your policy. Since all insurance companies are different and each motorcycle policy may have some unique provisions, the bottom line advice is to consult with your insurance agent before you take on the responsibility of having someone at your back as a passenger on your bike or before you allow someone else to ride your motorcycle on the road.

Lending Out Your Bike

Letting someone borrow your bike, even just for a quick trip around the block, may pose some risks of which you should be aware. Like car insurance, which typically follows the car for which the policy was written, motorcycle insurance may very well follow the bike, but not necessarily.

First of all, make sure that the person to whom you've lent your bike is licensed to operate a motorcycle here in North Carolina. If someone borrows your bike and has an accident where they damage someone's property or cause someone injury and they're driving illegally, there's a very good chance your insurance company won't allow a claim.

If they are properly licensed to operate a motorcycle and are found to have caused the accident, your motorcycle liability coverage may help pay for damages and/or injuries for all parties involved. Again, specifics depend on your policy and you should learn what's covered ahead of time, before you lend out your bike.

Coverage For Passengers

If you plan on having passengers on your motorcycle it might be a good idea to look into what's called passenger liability coverage. Many insurance companies offer this type of motorcycle insurance. Other companies may automatically cover injuries caused to your passenger under the liability provisions of your motorcycle insurance policy.

If you're involved in an accident that's deemed to be the fault of someone else, injuries to you and your passenger plus damage to your vehicle should be covered by the at-fault driver's liability coverage. If that person is either uninsured or under-insured, however, you'll could be totally out of luck. To cover for this potential scenario, you should consider obtaining uninsured/under-insured motorist's coverage. Consult with your insurance agent to explore all that's available to make sure you, your passengers and your motorcycle are protected to the degree with which you're comfortable.

Some insurance company discounts are automatic, while many you won't know about unless you ask. Raising your deductible or buying a car with anti-theft technology will likely get you an automatic discount, but how about a student getting good grades?