Comprehending Motorcycle OTC Insurance Coverage

There is beauty in riding a motorcycle. Picture riding down the highway in the open air with the wind in your hair, taking in the smells and sounds of nature around you, seemingly without a care in the world. Many people see this picture as an ideal weekend afternoon. Those people are sure to hop on their motorcycle and just ride. However, they are also putting a vehicle out on the road, where they are sure to encounter other vehicles and road hazards. Therefore, before that vehicle starts out on the open highway, it is important to understand the  provisions of motorcycle OTC (other-than-collision) insurance coverage.

The Basics

Motorcycles and scooters are lumped into the same category for insurance purposes. North Carolina considers these vehicles, as well as golf carts, travel trailers, and other recreational type vehicles to be “miscellaneous type vehicle endorsement,” which is typically attached to an automobile insurance policy. No matter the type of insurance coverage, proof of insurance must be kept with your motorcycle at all times during use. At the bare minimum, motorcycle owners must carry liability insurance for their motorcycle to handle claims related to property damage and bodily injury. However, since motorcycles are often seen as more risky, it is always a good idea to carry OTC coverage as well, especially since it is typically not quite as costly as automobile OTC coverage.

OTC (other-than-collision) Details

OTC coverage is where the insured will receive collision coverage as well as coverage related to damage from outside factors. Regarding collision coverage, this is where your own motorcycle will obtain coverage for repairs as the result of an accident for which you are at fault or if the accident is no-fault. In other words, if your motorcycle collides with a vehicle on the highway because of your actions, the cost of the damage to your motorcycle will be covered under your own collision coverage. If the cost to replace the motorcycle is less costly than the cost to repair the motorcycle, you will receive the cash value of your motorcycle to go towards replacement costs through your collision coverage.

The other coverage offered under OTC coverage relates to damage to your motorcycle from outside factors. For instance, if your motorcycle is damaged due to fire, weather, animals, or theft, your OTC coverage will cover the cost of repair or provide you with the cash value of your motorcycle. This coverage helps cover your property from everyday occurrences that have no relation to driving or being involved in a crash. It provides you a little boost of confidence to help make you whole again after a loss that was not any person’s fault.

It is important to consider certain factors to keep your costs down overall for your OTC coverage.  Some factors to consider are your own driving record, whether the motorcycle is considered high performance, and even your credit score. Be cautious and conscientious, whether you maintain OTC coverage or just liability coverage, and make sure you are not paying more than you need to. To learn more about the good options for your motorcycle or vehicle insurance coverage, contact the agents at Protective Agency Insurance at (877) 739-9367.