An open road, the wind in your hair, and an insurance ID card in your pocket. You’re ready for your two-wheeled adventure. And understanding exactly what coverage is provided under the policy listed on your ID card can make all the difference if you need to file a claim.

Whether you are cruising across the country or climbing dirt trails, one thing is certain: accidents can and do occur. Insurance affords coverage if an injury happens to you, a passenger, or someone else. Policies also can replace or repair damage caused to your motorcycle or property of others. Learning about the coverages available to you with a licensed agent can provide confidence when behind the handlebars.

 

Liability Coverage

Most state laws require a minimum limit of liability coverage. Bodily injury liability will pay for another person’s medical costs resulting from an accident you caused. Further, property damage liability will help pay for any physical damage you may have caused to another person’s property.

Liability coverage serves as the foundation for both motorcycle and automobile insurance policies. Liability coverage commonly includes three separate limits:

• Maximum amount for property damage
• Maximum bodily injury amount per person
• Maximum bodily injury amount per accident

State requirements are usually low. When discussing coverage options with your licensed agent, ask about higher limits available to you. Bodily injuries can be especially costly, and higher limits may, in fact, be well within your budget.

 

Collision and OTC (other-than-collision) Car Insurance

If you own your motorcycle free and clear, collision coverage and OTC (other-than-collision) is completely optional. Each coverage is designed to bolster your interest in the motorcycle itself. Therefore, you can transfer the risk of damage or loss to an insurance company or retain the exposure yourself.

Collision coverage will repair or replace your motorcycle if you are involved in an accident with another vehicle or object. As with any other coverage, your policy’s language will be precise in this regard. For example, colliding with a deer is not covered under collision, but rather under OTC (other-than-collision) coverage.

OTC (other-than-collision) insurance provides coverage for damage resulting from events except for collisions with other vehicles or objects. This includes theft of your motorcycle or damage caused by Mother Nature such as hail. And yes, Mother Nature includes deer, which randomly dart across roads at the most unexpected moments.

 

Uninsured and Underinsured Coverage

Uninsured and underinsured motorist coverage is also typically optional. If you are involved in an accident where the other person was at fault but lacks insurance, uninsured motorist coverage will kick in. In instances where the other driver had insurance, but not enough to cover your medical costs, underinsured coverage would cover the shortfall.

Both uninsured and underinsured motorist coverages do not require your injury to occur while you are operating your motorcycle. Each will provide coverage in the event you are injured as a pedestrian or bicyclist if you are struck by a vehicle whose driver doesn’t carry enough or any automobile or motorcycle liability insurance.

 

Replacement Cost

Most basic insurance policies will only provide you with the actual cash value of your motorcycle if it were totaled or stolen. Replacement cost valuation may be purchased to allow you to replace your valuable weekend ride with the same make and model without absorbing the cost of depreciation.

For older and less common motorcycles, determining the true replacement cost may difficult. In scenarios where there is a limited market for a particular motorcycle, your insurance company may offer a fixed limit coverage. Known as agreed value, both the insurance company and the insured know precisely the amount of coverage which will be paid in the event of a claim.

 

Specialty Coverages

For many motorcycle owners, their two-wheeled machine is more than just transportation; it is an extension of themselves. Classic, collector or customized, specialty motorcycles may be eligible for special coverage options which can help with protection.

Although specific requirements must be met such as garage storage, limits may be purchased to replace classic or collector motorcycles at their full market value. Additional insurance riders may also be purchased to provide for the replacement of original equipment, ensuring your motorcycle won’t have to be repaired with aftermarket parts.

Newer customized motorcycles also have unique coverage needs. Many insurers offer custom parts and equipment coverage, or “CPE” for short. Coverage for CPE is usually very affordable but will likely require maintaining collision & OTC (other-than-collision) coverage.

Motorcycle owners have a special bond with their machine. Representing freedom and self-expression, obtaining the right insurance can prevent accidents from turning into a disaster. Get coverage for yourself, your motorcycle, and your fellow rider by contacting our team at ProtectiveAgency.com Call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.