Motorcycle Insurance 101
Motorcycle Insurance 101
by sch43yt9824huilb

A Complete Guide to Motorcycle Insurance

If you have owned a motorcycle for a while or recently purchased a new one, you may have several insurance questions regarding your vehicle. Do you know what motorcycle insurance will cover, and the financial risks you possibly face in the event of an accident? Here are the top facts on why you should financially protect yourself with motorcycle insurance.

What is Motorcycle Insurance?

Motorcycle insurance provides coverage for motorcycles, choppers, fast street bikes, mopeds, and even Segways. In the event of a motorcycle accident, loss, damage, or theft, motorcycle insurance will provide you with financial protection. Liability coverage is covered under the insurance plan if you are responsible for another person’s injuries or damage to their property.

How Does Motorcycle Insurance Work?

Similar to how car insurance works, motorcycle insurance nearly mirrors it. Your liability coverage will cover some of the legal costs if an injured party files a lawsuit against you. If the claim amount’s value is beyond what your policy covers, you will be responsible for any out of pocket costs for the parties’ injuries or damages. Depending on the coverages in your policy, it may cover medical or hospital costs for you or your passengers on the bike.

How Much Motorcycle Insurance Do I Need?

What type of bike you own and how you plan to use it will help guide the amount of insurance you need. Any biker who possesses a high horsepower to weight ratio bike has a greater risk of serious injury to themselves and a higher potential for accidents, which causes damage to others. If you fall into this category, it will be a good idea to increase your motorcycle liability insurance.

How Much Does Motorcycle Insurance Cost?

The cost of motorcycle insurance is based on many factors, including what type of bike you own, how old the bike is, your driving record, and the engine’s size, and others. Motorcycle insurance can seem more expensive compared to car insurance. Some reasons for these higher rates are:

  • Motorcycles are more difficult to see on the roadway and in blind spots.
  • Crashes on a motorcycle usually result in a higher incidence of severe or fatal injuries due to little protection while the rider is on the bike.
  • Easier to steal, particularly sport bikes due to their weight.
  • Stolen motorcycles are harder to recover due to their parts being sold by thieves. Once stolen, they can be stripped down, rebuilt, and sold.

Is Motorcycle Insurance Required?

The precise amount of motorcycle insurance required varies from state-to-state. Knowing how your state operates is crucial to learning the costs of personal injury coverage and property damage coverage. New Jersey, for instance, requires motorcycle insurance. All motorcyclists are required to have the following minimum coverages:

  • $15,000 for bodily injury per person
  • $30,000 for total bodily injury per accident
  • $5,000 for property damage

These are the state-mandated minimum levels of liability coverage, though we recommend that you have higher limits to protect yourself in the event of a lawsuit.

Why is Motorcycle Insurance Important?

Motorcycle insurance is essential to protect yourself, others, and your bike. It is vital to get yourself covered if you plan to own a motorcycle, especially in you live in New Jersey – one of the more densely populated states in the country.

If you’re looking to purchase motorcycle insurance, the best place to find your plan is with Schechner Lifson. We are an independent agency that can help you get the best policy at a price that matches your budget. Contact us today!

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