Do I Need Insurance for My Moped or Scooter?

 

In North Carolina, low-powered vehicles like mopeds, scooters and e-bikes have become more popular lately, especially since the cost of gas has been rising so significantly.  If you're thinking of becoming a convert to this form of two-wheeled transport, you may have questions about the insurance requirements you'll face in order to operate your moped or scooter on North Carolina roads.  You can find answers to those questions here.

Mopeds or Scooter?

In the State of North Carolina, a motorized two-wheeled vehicle with an engine less than 50cc and a top speed of less than 30 mph is legally considered a moped.  A moped usually has pedals, like a bicycle, but not always.  Traditionally, mopeds had pedals, thus the name, which is a combination of motor and pedal.

A scooter, defined as having an engine size of 50cc or greater, is considered a motorcycle but, to be considered a scooter, will have a platform to put your feet.

Moped Requirements

State laws in North Carolina require that all mopeds operated on public, state-maintained roads be registered with the state division of motor vehicles.  They are not required to be titled.

The law also requires these vehicles be covered by at least a minimum amount of liability insurance in amounts as follows:

• $30,000 bodily injury liability coverage per person per accident
• $60,000 bodily injury liability coverage for all persons per accident
• $25,000 damaged property liability coverage per incident

This liability protection is for losses suffered by a third party or parties in an accident deemed to be your fault.  The minimum required amounts are the same as those set for larger scooters or motorcycles and, in the event of an actual accident, especially a seriously damaging one, may be significantly lower than the costs an at-fault rider will face.  You will be personally responsible for any costs above these minimum amounts that your insurance is obligated to cover.  Financial experts generally agree that your liability protection should be considerably more than what's required by law.

Approved motorcycle helmets are required to be worn at all times when riding either a moped or scooter on public roads.  You're required to have a valid driver license on your person when operating your scooter, but a license is not required to operate a moped.  You need only be sixteen years of age, have it registered with NC DMV and display a state-issued license plate.

Types of Off-Road Vehicle Insurance

 

If you own any type of off-road vehicle, whether it's an ATV, dune buggy, dirt bike, snow mobile or golf cart, be aware that your standard homeowner's insurance likely provides you with little or no protection against it being damaged or destroyed.  This is especially true since your off-road vehicle is taken off your property.

North Carolina State Law

In the State of North Carolina, insurance is required on all registered motor vehicles.

Laws governing ATVs are similar to the laws governing motorcycles.  This means that all registered ATVs are required to carry at least a minimum amount of liability coverage, both bodily injury protection and property damage liability.  The minimums are the same as they are for motorcycles and cars:

• $30K per person/accident bodily injury liability
• $60K for all persons per accident
• $25K per accident in property damage liability

Even if your vehicle is not registered because it's not used on public roads (which is illegal anyway) or public lands, having liability protection is important to have in case you're involved in an accident that's deemed your fault.  You'll be held financially responsible if you cause any property damage or injuries while using your vehicle.  Without insurance, the cost of these damages will have to come out of your own pocket.  If your off-road vehicle is registered, you'll also be required to carry insurance for uninsured/underinsured drivers.

Off-Road Vehicle Insurance

Even if your off-road vehicle isn't registered and you're not required to have insurance by law, obtaining coverage for your own protection and peace of mind is still a smart move.  There are four types of coverage that go into making of an off-road vehicle insurance policy.  These include:

1. Bodily Injury Liability - pays toward medical costs of parties injured in an accident you cause.
2. Property Damage Liability - pays toward the repair/replacement of property owned by a third party damaged or destroyed in an accident you cause.
3. Collision Coverage - helps pay toward the cost of repairing/replacing your ATV if damaged in a collision with another vehicle, a tree, a fence, etc.
4. Comprehensive Coverage - helps pay to repair/replace your off-road vehicle if it's damaged in ways other than in a collision.  This may include damage caused by weather (such as a hail storm), fire, vandalism or if your off-road vehicle is stolen.

Full protection is the safest option.  You should read and understand your policy completely.

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?

Do You Need Motorcycle Insurance?

Nearly every state in the U.S. requires that motorcycles being driven on public roads be insured, although the minimum amount of insurance coverage mandated may vary from state to state. Here in N.C., required liability coverage for motorcycles is the same as what's required for cars - 30/60/25. Bear in mind that this is strictly liability coverage, paying benefits only to third parties suffering losses in accidents for which you are held responsible. There is no requirement for motorcycle insurance of other types such as collision, medical or comprehensive, although it's highly recommended that you look into adding coverage other than your basic liability.

Driving your motorcycle without having at least the minimum liability coverage in force is illegal and can lead to penalties.  If you allow your coverage to lapse, your insurance company is required to notify the State DMV, who will send you a notice (Form FS 5-7) requiring you to pay a fine and reaffirm your insurance coverage.

Failure to comply with the Form FS 5-7 within 10 days will cause your license plate to be suspended for 30 days. You'll then be subject to a fine, a service fee, a license plate fee and you'll need to submit proof of current insurance coverage in order to cancel your license plate suspension.

30/60/25

North Carolina's minimum liability requirements of 30/60/25 translate to $30,000 liability coverage against injury or death per person/per accident, $60,000 injury or death for all persons/per accident and $25,000 property damage per accident.

If you've ever been involved in a serious vehicle accident or know someone who has, you realize that these minimum liability amounts are inadequate protection and, with uncovered costs coming out-of-pocket, experts' recommendations that you purchase more than minimum amounts of liability coverage are well-founded.

It's also recommend that you carry more protection than basic liability coverage. Optional types of insurance coverage you may choose to consider include:

• Collision Coverage - pays for damages to your motorcycle that's been involved in an accident.
• Comprehensive Coverage - pays for losses you suffer regarding your motorcycle in situations other than an accident, such as theft, vandalism, fire, hail or storm damage, etc.
• Uninsured/Under-insured Motorist Coverage - pays for your injuries and/or bike damage when the party held liable for your accident doesn't have adequate insurance to cover those losses.