If you’re a proud motorcycle owner, you know how important it is to protect your ride. Motorcycle insurance is a must-have to ensure you’re financially covered in any unforeseen accidents, damages, or theft.
When it comes to motorcycle insurance, two important types of coverage that you should consider are collision insurance and comprehensive insurance. These two major coverages help protect your investment and give you peace of mind while hitting the open road.
But what exactly do these coverages entail? And when is it worth adding them to your policy? In this article, we’ll dive into the nitty-gritty of collision and comprehensive motorcycle insurance and give you all the information you need to make an informed decision.
What is motorcycle collision insurance and what does it cover?
Collision insurance is designed to cover damages to your motorcycle resulting from a collision with another vehicle or object. If you are involved in an accident where your bike is damaged, collision coverage will help pay for the repairs. Whether you collide with another vehicle on the road or hit a stationary object like a tree or fence, this coverage will assist in covering the costs.
It’s important to note that collision coverage does not pay for medical bills, whether they are yours or the other driver’s. Additionally, it does not cover damages you may cause to another vehicle or object. Collision insurance is solely focused on repairing or replacing your motorcycle after a covered collision.
What is motorcycle comprehensive insurance and what does it cover?
Comprehensive insurance covers damages to your motorcycle that happen outside of collisions. This type of coverage protects against events like theft, vandalism, fire, falling objects, or natural disasters such as hailstorms. If your motorcycle is damaged in any of these non-collision incidents, comprehensive insurance will help cover the costs of repairs or replacement.
However, it’s essential to understand that comprehensive insurance does not cover normal wear and tear on your motorcycle or breakdowns due to a lack of maintenance. It is meant to protect against unexpected incidents rather than routine upkeep.
What Doesn’t Collision and Comprehensive Motorcycle Insurance Cover?
While collision and comprehensive insurance offer valuable protection, it’s important to be aware of their limitations and exclusions. If you have a loan on your motorcycle or own a high-value bike, your lender may require you to have collision and comprehensive coverage. Even if you own your motorcycle outright, adding this level of coverage is highly recommended to protect your investment.
However, it’s crucial to note that comprehensive coverage does not include ordinary wear and tear or mechanical breakdowns. If you wish to have coverage for non-original parts or customized additions, you can add a rider to your policy. Additionally, collision insurance does not cover medical expenses related to a motorcycle collision or damages caused to another driver’s vehicle. Personal injury protection (PIP), medical payments, and property liability cover these aspects.
How do coverage limits and deductibles work?
Both collision coverage and comprehensive coverage have their respective coverage limits and deductibles. Coverage limits refer to the maximum amount your policy will pay for a covered claim. Any costs exceeding your coverage limit become your responsibility.
For collision coverage, the limit is determined by your motorcycle’s actual cash value. The same applies to comprehensive coverage. Actual cash value takes depreciation into account when assessing the limit.
Replacement Cost Value (RCV) outperforms Actual Cash Value (ACV) by not accounting for depreciation, meaning you get the full amount to replace your motorcycle. For instance, if a motorcycle depreciates from $15,000 to $10,000, ACV would pay $10,000 after a loss, while RCV would cover the full $15,000 for a new one.
Deductibles, on the other hand, are the amount you pay out of pocket toward a covered claim. When purchasing collision and comprehensive coverage, you have the flexibility to choose your deductibles. Higher deductibles usually result in lower premiums, while lower deductibles lead to higher premiums.
Does comprehensive or collision cover custom bike parts?
Collision and comprehensive coverage typically apply to the standard parts that your motorcycle had when it was originally manufactured. Any accessories or parts installed by the manufacturer before your purchase, listed on the original sales order, are typically covered by comprehensive or collision insurance.
However, if you have added aftermarket parts or custom accessories to your bike after the initial purchase, they may require optional equipment coverage. This additional coverage can be added to your policy to protect these non-standard parts. If you have customized your motorcycle, it’s important to consider adding additional equipment coverage to ensure comprehensive protection.
When Is Collision and Comprehensive Motorcycle Insurance Worth Adding?
Determining whether collision and comprehensive coverage are worth adding depends on various factors. While the extra coverage these policies provide is desirable, it’s important to weigh the costs, benefits, and risks for your situation.
If you have a loan on your motorcycle, own a high-value bike, frequently use your motorcycle, or reside in a high-crime area or an area with heavy traffic, adding comprehensive and collision protection to your motorcycle insurance plan is highly recommended. It provides peace of mind and safeguards your investment.
It’s worth noting that you can lower your premium by opting for a higher deductible. Additionally, you can customize your coverage, including deductibles, with the assistance of a motorcycle insurance agent or broker.
Conclusion
Understanding collision and comprehensive motorcycle insurance coverage is crucial for every motorcycle owner. Collision insurance covers damages resulting from collisions with other vehicles or objects, while comprehensive insurance protects against non-collision incidents such as theft or vandalism. It’s important to be aware of the limitations and exclusions of these coverages, as well as the impact of coverage limits and deductibles on your policy.
Custom bike parts may require additional coverage, and the decision to add collision and comprehensive insurance depends on factors such as the value of your motorcycle and the level of risk you face. By solidly understanding these coverages, you can make informed decisions and ensure that your motorcycle is adequately protected.
Remember to consult with a motorcycle insurance agent or broker to customize your coverage to meet your specific needs. Safeguarding your investment and having the right coverage in place will provide you with peace of mind on the open road.
FAQs
What is the difference between collision and comprehensive motorcycle insurance?
Collision insurance covers damages to your motorcycle resulting from collisions with other vehicles or objects, while comprehensive insurance covers damages from non-collision incidents such as theft, vandalism, or natural disasters. Collision insurance focuses on repairing or replacing your bike after a covered collision, while comprehensive insurance protects against a broader range of risks.
Will collision insurance cover my medical bills if I’m injured in a motorcycle accident?
No, collision insurance does not cover medical expenses for injuries sustained in a motorcycle accident. Your and other drivers’ medical bills are typically covered by personal injury protection (PIP) or medical payments coverage. Collision insurance solely covers the repair or replacement of your motorcycle.
Can I customize my coverage limits and deductibles for collision and comprehensive insurance?
Yes, you can customize your coverage limits and deductibles when purchasing collision and comprehensive insurance. Higher deductibles typically result in lower premiums, while lower deductibles lead to higher premiums. It’s recommended to consult with a motorcycle insurance agent or broker to determine the optimal coverage limits and deductibles that align with your needs and budget.
Is collision and comprehensive insurance worth adding to my policy?
Whether collision and comprehensive insurance are worth adding depends on various factors, such as the value of your motorcycle and the level of risk you face. If you have a loan on your bike, own a high-value motorcycle, or frequently use it in high-risk areas or heavy traffic, adding comprehensive and collision protection is highly recommended to safeguard your investment and provide peace of mind. Consider consulting with a motorcycle insurance agent to assess your specific needs.