Motorcycle Buying Guide - Motorcycle Insurance
Rates for motorcycle insurance can vary a lot. Motorcycle insurance depends on your age, the motorcycle model, your driving record, your home location and other factors. If you’re 19 years old and you bought a brand new Harley, your motorcycle insurance will be much higher than if you’re bought a used 3 – 4 year old one or if you’ve been riding a bike for a couple of years or more (other things being equal).
Motorbike insurance payments can differ a lot between different motorcycle models. "Rates really vary a lot," says Ben Sheridan, general manager for motorcycle insurance with Progressive Casualty Insurance Co., the top motorcycle insurance underwriter in the U.S. "From one bike to another, they can be five to ten times different." By way of example, he says a premium of $200 for insuring a small or midsize commuter-type motorcycle can easily balloon to more than $1,000 for a high-horsepower, canyon-racer sport bike.
Do you need a full coverage?
Don’t just get the full insurance coverage for your motorcycle automatically. "If you're not buying an expensive bike," Sheridan says, "you can avoid collision and comprehensive" coverage, which pays to repair or replace a crashed motorcycle. This coverage can account for as much as two-thirds of the premium, depending on model of the bike and your age.” The exception to this is if you're financing the bike. To protect their investment, lenders will require this coverage until the bike is paid off.
What about medical?
The same goes for medical coverage, what the motor vehicle insurance industry calls Med Pay. Say you’re covered by a comprehensive health and medical policy at your work. In that case, many people suggest you don't need it on your motorcycle insurance policy. In any event your motorcycle policy's Med Pay coverage is secondary, which means that it pays only those medical expenses not covered by any other policy you may have.
It’s cheaper to go alone
Have you heard about the guest passenger coverage yet? This coverage is not optional for car insurance, but is optional for the motorcycle insurance in most states. Say, you don’t have a girlfriend and you’re tight on money, don’t get this coverage and save some extra money. Just remember not to offer riding the back sit to anyone.
Don’t under-insure!
Pay close attention to your motorcycle insurance coverage in terms of uninsured motorist and medical liability coverage for the person or people injured when the crash is your fault. Go for the same $100,000/person, $300,000/incident medical liability coverage as you already have for your car. If you’re not sure about this, consult with your insurance agent. This is not the area where you want to save.
Other discounts
Some motorbike insurance providers offer discounts if you join a qualified motorcycle association such as American Motorcycle Association, Harley Owners Group, Gold Wing Road Riders Association, or others (check with your insurance company). You may also get a discount on your motorcycle if you own one or more cars. Some insurances offer a good student discount (just like for cars) if you’re in college and you meet the qualifications for this discount (minimum number of college credits, minimum GPA requirements, etc).
You might be surprised, but your credit score can have direct influence on your bike and car insurance rate. How? Insurance companies think that if you have been responsible with your money and pay your bills on time, you will also be as responsible on the road. Statistically speaking, the person with higher credit score is less likely to drive recklessly than the person with lower credit score. It's called, in the trade, a "financial responsibility score," and those who score well score. "We give them lower rates," Sheridan says, "and dramatically lower." How much lower? In some cases, "by more than 50 percent."
Bottom Line
Buy only the coverage you need, but buy the coverage you need. Compare costs between different insurance companies and on different motorcycle models. Most insurance companies will give you a free quote online, for some you’d have to call.
Nationwide: www.nationwide.com/motorcycle-insurance.jsp
AllstateGarage: http://www.allstategarage.com/
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