Protect Your Ride—A Complete Guide to Motorcycle Insurance

An article from our friends at Leavitt Group

Whether you’re a seasoned motorcyclist or just starting out with your first bike, the right insurance protection* is a must for your ride. There are several different types of motorcycle insurance coverage to consider. Here’s a quick breakdown of what you need to know:

• Liability insurance covers bodily injury and property damage that occurs to others if you cause an accident. This does not cover injuries to you or damage to your motorcycle and may not fully cover your passenger. Most states require a minimum amount of liability coverage, but the laws vary from one state to another regarding the required amounts.

• Collision insurance pays the cost (minus your deductible) to repair damage to your motorcycle in the event of a collision with a vehicle or object (such as a tree). If the motorcycle is totaled, this coverage will generally pay the actual cash value of the bike at the time it was wrecked—which is typically the current market value of the bike, taking depreciation into account.

• Comprehensive coverage pays the cost (minus your deductible) to repair damages that occur due to events besides collision (fire, theft, vandalism, etc.). This coverage also pays the actual cash value of the bike if totaled. If you have aftermarket accessories on your motorcycle (chrome, custom paint, trailers, sidecars, etc.), consider additional equipment coverage. Check with your insurance agent to determine what’s covered under your policy. Make sure to document any enhancements you make to your bike and what they cost.

• Uninsured/underinsured motorist coverage pays for damages to you and your property if you are in an accident caused by a driver who either doesn’t have adequate insurance (underinsured) or doesn’t have insurance at all (uninsured).

• Medical payments (MedPay) or personal injury protection (PIP) can help cover medical expenses for you and your passenger after an accident, regardless of who is at fault. Availability and requirements vary by state.

How much coverage?
Once you know what type of coverage you need, the next decision is how much. The first question to answer is: What are the minimum coverage amounts in the state where you have registered your motorcycle? Medical bills and repair costs can add up quickly—often far exceeding state minimum limits. For this reason, many riders choose higher liability limits to better protect their savings and future income.

Before deciding how much coverage to purchase, consider your needs and lifestyle. It’s important to purchase enough insurance to protect your assets. If you decide against adding comprehensive and collision coverage, you won’t be protected against theft or damages to your motorcycle. This could be a devastating loss down the road.

Since the laws on insurance coverage vary from state to state, contact your insurance agent to find out what coverage is right for your situation.

Factors that can affect what you’ll pay for motorcycle insurance
Several factors influence what you’ll pay for motorcycle insurance—some you can control, and some you can’t. If your goal is to pay as little as possible while being covered as well as possible, do what you can where you can.

1. Where you live
   Where you live within your state can make a difference. Insurance costs are typically higher in cities than in rural areas because of the traffic and increased risk of theft.
   
   Weather patterns are also a factor. Residents of areas with longer riding seasons can experience higher premiums because riders spend more time on the road.

2. Your age
   This is a common factor—riders under age 25 usually pay more based on accident statistics. As you get older and more experienced, your rates will likely go down.

3. Driving history and experience
   Your driving record is an important element in figuring out your insurance rate. Premiums are strongly impacted by speeding tickets, accidents and claims. A good driving record can be beneficial not only for a lower rate straight out of the gate, but it may qualify you for additional discounts offered by some insurance companies. Be sure to ask!

4. Type of motorcycle
   The make, model and style of your motorcycle can impact insurance costs. Sport bikes and high-performance motorcycles cost more to insure than cruisers or touring bikes, largely because they are involved in more accidents. The age of the motorcycle matters too—newer bikes often cost more to insure.

5. Where you store your motorcycle It may seem minor, but keeping your motorcycle in a locked garage rather than parked on the street reduces the risk of theft or damage, which can help lower your rates. There may be discounts available for bikes protected by a security system or tracking device as well.

More smart moves to lower your rate

• Bundle with home or auto policies.
• Complete and pass a safety course.
• Choose a higher deductible.
• Maintain a good credit score.

Be aware of these coverage gaps
One mistake new insurance policyowners often make is not knowing exactly what is and is not covered. Here are common gaps to be aware of:

• Accessories and custom parts may have limited coverage unless added specifically to a policy.
• Riding gear (helmet, jacket, boots, etc.) may not be included.
• Passenger injuries may require additional coverage, like MedPay.

Tips for staying safe on the road
Insurance is essential, but safe riding habits are just as important. Here are key ways to protect yourself on the road:

• Complete a motorcycle rider education course.
  Taking a course can help ensure you have the knowledge and experience to safely ride a motorcycle in different conditions and situations.

• Practice, practice, practice.
  Motorcycles handle and respond differently. Familiarize yourself with the feel of your motorcycle by riding in a controlled area before going into traffic. Try to do this in different situations, including inclement weather, carrying cargo or a passenger and slick roads.

• Always ride sober.
  In 2024, 40% of motorcycle riders who died in single-vehicle crashes were alcohol-impaired.1

• Always wear a helmet.
  Helmets reduce the risk of death in a motorcycle crash by 37%–42%. Unhelmeted motorcyclists are three times more likely than helmeted riders to suffer traumatic brain injuries.2 In states without universal helmet laws, 51% of motorcyclists killed in 2023 were not wearing helmets--compared to just 10% in states with universal helmet laws.3

• Increase your visibility.
  Stay out of other drivers’ blind spots, keep your headlights on at all times and apply reflective materials to your motorcycle.

Motorcyclists are significantly more vulnerable on the road, making defensive driving and visibility essential to staying safe.

There’s still plenty of great weather ahead to hit the road. Before you head out, make sure you have the right insurance. Mountain America Credit Union has the answers to all your motorcycle insurance questions. Contact us today to review your options and make sure you’re properly protected before your next ride.

References:
1 National Highway Traffic Safety Administration
2 National Safety Council
3 National Safety Council

*Insurance products are not deposits of Mountain America Credit Union and are not protected by the NCUA. They are not an obligation of or guaranteed by the credit union and may be subject to risk.