April 19, 2016, 7:11 am

Protect your Hog: a Motorcycle Insurance Comparison Guide

by: The Financial Blogger    Category: Insurance
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One of the caveats of riding a motorcycle is that riders face a higher risk of getting into an accident when compared to drivers of standard cars. Yes, there is nothing that can compare to riding a motorcycle on an open road with the wind hitting your face, but you have to remember that you’re also subject to a greater amount of personal risk due to the lack of sufficient protection from external forces. Motorcycles are also harder to control when compared to a standard car, which is even more apparent during hazardous road conditions, such as when it rains or if there’s snow on the road. If you use a motorcycle on a daily basis, you need to know about the different types of insurance plans out there and which ones would be the most suitable for your needs.

 

Comprehensive Physical Damage Insurance (CPDI) for Motorcycles

While most states require a motorcycle rider to have some form of liability insurance, what happens when your bike gets damaged in a non-accident related event? Instances like this occur not as a result of the actions of the motor vehicle owner; rather, because of external events outside of their control. For example, hitting a deer is considered a frequent motorcycle accident in Georgia, especially during night biking. Theft and vandalism of particular motorcycle models is rampant in Los Angeles. Severe weather and hail are also other common external culprits behind why bikes get damaged. If you live in a state where these incidents occur, it is highly recommended that you acquire comprehensive physical damage insurance for your motorcycle since this can help immensely in paying for damages to your bike.

 

Collision Insurance

Collision insurance is another type of insurance that you should consider getting since it involves damage resulting from hitting another vehicle. This type of insurance will either help you pay your bike repairs or give you the equivalent cash value of your motorcycle in case it was damaged irreparably during the accident. Do note though that the cash value uses the current value of the bike based on usage. The present value is calculated using the number of years that the bike has been in use, divided by the estimated lifespan of the motorcycle. The percentile outcome of the calculation is the amount that the insurance covers.

 

Bodily Injury Liability Insurance

This type of insurance covers the medical bills of the injured party during a motorcycle accident. For example, if you suddenly lost control of your vehicle and hit a pedestrian, their medical bills would be covered by your liability insurance. However, bodily injury liability insurance does not cover your medical expenses. If you also sustained injuries in the accident, you will need to rely on your personal health insurance coverage to pay for the treatment of your wounds.

 

Nearly all U.S. states require liability insurance for motorcyclists. Before you consider any other type of insurance package, you should have a good liability insurance plan in place. Without it, you’re likely to be sued by the person you accidentally hurt, and this can lead to a lengthy, expensive court case.

 

These are the top three types of insurance that all motorcycle riders should at least consider before using their hogs on the road. If you want a more extensive motorcycle insurance comparison, you can visit sites like CoverHound, which shed further details on other types of motorcycle insurance available. Medical payments insurance and uninsured motorist coverage for motorcyclists are some of the other insurance options that could be useful depending on your needs.

 

Should I get them all?

The best possible scenario for any motorcyclist is to have a comprehensive protection package that includes liability, replacement, accident and physical injury insurance. However, not everyone can pay for such a thorough policy. You should first get liability insurance, and then accident insurance, since this helps to cover the most common incidents that you’re likely to encounter. More extensive insurance plans can be added on an “as needed” basis depending on your perceived needs.

 

Just remember, while riding a motorcycle down an open country road is one of the best experiences imaginable, you should not be reckless in traveling without any form of insurance.

 

While some of these insurance plans are optional, hopefully this comparison guide has enlightened you to the different types of policies available. Remember, don’t be foolish and leave home without a proper insurance package. You may think that you’re an excellent rider, but accidents can happen to the best of us, no matter how careful we are.

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