Many states require motorists who operate a motorcycle to maintain a policy with a minimum amount of liability coverage, and some states have additional legal requirements that you must meet, as well. In addition to this requirement, if you have a loan on your motorcycle, your lender may require you to purchase replacement coverage.
Types of Coverage
Just as with car insurance, motorcycle liability coverage will pay for the expenses that another party may face if you cause an accident on your motorcycle, and replacement coverage will pay to repair or replace your motorcycle. It is important to note, however, that liability insurance may not be all you need, and you would probably benefit from purchasing additional coverage for your motorcycle.
For example, a motorcycle policy may also include coverage for personal injury, a rental vehicle, towing service and more. These are expenses that you may face if you are involved in an accident, and you can purchase optional coverage in addition to the coverage that you are required to purchase if you want to set up the most effective motorcycle insurance policy possible. The right policy will decrease your out-of-pocket costs if you are in an accident.
When you are buying motorcycle insurance, keep in mind that you can adjust your deductible to lower your premium. A typical deductible for a motorcycle insurance policy is $500, but the deductible can be increased to a higher level so that you can enjoy a more affordable premium. The premium is the regular cost you will pay for access to the coverage, and the deductible is only paid when you file a claim. While it may seem to make sense to raise your deductible on your motorcycle policy, you should always ensure that you have access to the funds needed to file a claim so that you can use your insurance as needed. In order to be eligible for attractive discounts, you may also bundle your motorcycle policy in with other types of insurance you carry, such as for your car and home.