Motorcycles: Properly Insuring Your Bike

Here are some areas to consider:

Coverage for Your Bike and Equipment

New Motorcycle Replacement

Unfortunately, new motorcycles tend to depreciate quickly, resulting in a coverage-to-value gap if you have a significant accident in the first few years. Some but not all insurance companies offer a special replacement cost endorsement that will provide the total funds for a brand new motorcycle of the same type and features if you have a total vehicle loss within a specified timeframe or number of miles. If you are purchasing a new bike, consider this option. Note that this differs from loan lease gap coverage endorsement, which only pays a lender should a gap in the insured value to loan amount occur.

Custom Bike Equipment and Accessories

Custom equipment isn’t cheap. If you customize your bike with after-factory parts, saddle bags, or other permanently attached equipment, you need to purchase coverage for those items. People often buy a bike and add custom equipment over time; however, unless you specifically add the value of these items to your policy, they may not be covered.  If you’ve added custom equipment to your motorcycle, be sure to speak with your insurance professional and provide receipts of the cost of these items to ensure that the investment in your bike is covered.

Coverage for gear and Personal Belongings

Special protective gear you wear while riding your bike or personal belongings you carry may or may not be covered by your motorcycle policy. Insurance companies treat belongings differently and may provide some coverage directly or by endorsement. This coverage can save you money if personal property is damaged in an accident because it would fall under the vehicle deductible rather than going to your home/renters policy for coverage, which would have a separate deductible.

Coverage for Injuries

Bodily Injury to Guests on Your Bike

If you carry any passengers on your bike….even only once in a while…you need to be sure that your “guests” are covered by your policy.  Some motorcycle policies may exclude guest coverage, so you want to be sure that your policy either includes it automatically or is added by endorsement.  You don’t want to have an accident and find out the person you were carrying isn’t covered.

Bodily Injury to Others

It’s true bikers are more at risk of bodily injury than a person in a vehicle; however, you could cause another vehicle to swerve and have a significant accident. In that case, you’d be responsible. You should carry at least the same bodily injury to others limits that you carry on your other vehicles as the risks are the same. Another reason to have higher limits (suggested $250,000 per person/$500,000 per accident) on this part of your insurance is to purchase additional protection for yourself if an underinsured or uninsured motorist injures you.

Bodily Injury to You by an Uninsured or Underinsured Motorist

Suppose you’re knocked off your bike in an accident, and the person who hits you either doesn’t have insurance or has only minimal insurance. In that case, you can still have protection for yourself (and in some situations others) through your motorcycle insurance policy if you purchase underinsured and uninsured motorist coverage. We recommend coverage of $250,000 per person/$500,000 per accident (or higher if available); however, you can only purchase coverage limits up to the same limits you buy for “Bodily Injury to others” on your policy.

Medical Payments Coverage

If you’re in an accident, there’s a good chance you may be injured.  With many health insurance plans having high deductibles, copayments, or other limits on care, medical payment coverage can help you bear the financial costs of an accident so that you’re not suffering an economic crisis or medical challenges.

If you have questions, please Contact Us at Murphy Insurance to review coverage and options.