In most areas of the country, motorcyclists are required by law to purchase a minimum amount of insurance coverage, and many motorcyclists also have coverage requirements mandated by their lender. If you own a motorcycle, it is important to learn more about the different legal and lender requirements that are in place and to determine if you would benefit from purchasing additional insurance beyond what is required. Additional coverage for your motorcycle policy may include increasing the limits of the required coverage as well as purchasing optional types of coverage for additional benefits.
The general legal requirement for motorcycle coverage relates to liability insurance, but some states have additional coverage requirements that you may need to meet. Liability coverage will pay for medical expenses and property damage to the offended party if you cause an accident, as well as associated court costs. But this coverage will not pay for any personal expenses you have related to the accident. A lender requirement for coverage may relate to repair or replacement costs that you may incur if you are in an accident or if your motorcycle is otherwise damaged or stolen.
In addition to these coverage options, you may also opt for rental vehicle coverage, personal property damage, personal injury coverage and more. Each of these coverages provide unique benefits, and you can ascertain the benefit you would receive from the coverage before purchasing your policy.
As with most other insurances, if you need to file a claim you will need to pay your deductible, and the insurance company will pay up to the limit of your coverage. Because you will be responsible for the deductible when you file the claim, you should select your deductible amount carefully to ensure that it is affordable for you, as well as keeping liquid assets on hand in the full amount of your deductible to use as needed. Keep these important points in mind as you purchase your new motorcycle policy.