Motorcycle Insurance – Choose the one that best covers your needs

2007-03-08 10:33:40

( Insurance )



After buying your dream motorcycle, it is now time to decide the best motorcycle insurance for your needs. But first, you have to understand the types of motorcycle insurance and its cost. Your insurance rate depends on how much of a risk you are as determined by your motorcycle insurance company.

The first thing they consider is age. The older you are, the cheaper your insurance rate. And if you are a new rider, the rate will be higher. Second is your type of bike. The more expensive your motorcycle, the more expensive your insurance. Third is your address or location of your garage. If you park your bike in a high crime or accident-prone area, the more expensive your motorcycle insurance quote will be. Fourth is your driving record. The cleaner your record, the cheaper your insurance. And fifth is your job. If you are a construction worker and park your bike near your job site, expect a higher insurance rate.

Types of Government Required Insurance

Bodily Injury Liability (BIL) is required by law. For BIL, minimum insurance is $10,000 per person. It pays for the injury of others when you are the one at fault. It’s wise to triple this amount to fully cover litigations and lawsuits. Under this coverage, the insurance will pay for the cost of damaged property, medical bills for the injured and their lost wages, and other damages resulting from the accident.

The Driver’s Property Damage Liability Insurance (DPDLI) on the other hand will pay for your motorcycle damage when the other driver is at fault. The minimum amount for this coverage is $5,000 per accident. So, if your bike costs $15,000 and you only get paid $5,000, you still have to look for $10,000 to cover the cost of your bike. And if the other driver files for bankruptcy, you get nothing. In a bodily injury and property damage liability, say a 10/20/5 coverage, you will be paid up to $10,000 per person with $20,000 maximum per accident for bodily injury and $5,000 per accident for property damage.


Other Types of Insurance

The Guest Passenger Liability covers an injured guest passenger. Another is the Underinsured/Uninsured Motorist where you can collect the remaining cost of your bike say the $10,000 mentioned earlier after receiving payment from your property damage liability insurance. Then there is the Underinsured motorist which takes care of your expenses after the other driver’s insurance runs out. This is important since your damages may be more than the coverage of the other driver’s insurance.

And the most important insurance you can buy is the Uninsured Motorist Coverage. There is high probability that you might get hit by a driver with no insurance. Hence with this coverage, your medical expenses and property damages will be taken cared of.


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