How Does Motorcycle Insurance Work?

Motorcycle insurance applies to various two-wheeled transportation types.  These types include mopeds as well as traditional motorcycles.  Depending on the carrier, some may exclude high-performance or racing style motorcycles, as they carry a higher degree of risk.  Even if your motorcycle is considered high risk, most states require that you have coverage, so be certain that you have a policy in place before riding out on the open road.

Be certain to provide your insurance carrier all of the relevant information pertaining to the motorcycle that you are looking to cover so that you get the correct coverage in place.

• Determine your need for coverage.  In most states, if you operate a motorcycle, you are required to cover it.  Check with your local department of motor vehicles for state minimums, as they may vary as compared to traditional automobiles.


• Understand your coverage limits.  As with any insurance policy, it is important to understand what the policy covers, and what it does not.  Ensure that your policy covers property damage, as well as liability as well.  Coverage should also include peripherals such as helmets, saddlebags, and leathers, which are typically associated with motorcycle riding.  Be certain to ask clarifying questions as your policy is being written to ensure that you have full coverage.


• Understand policy exclusions.  As with most insurance policies, there are exclusions where your policy would not cover specific types of damages.  Most motorcycle policies do not cover damage due to weather, unless that damage is incurred while the motorcycle is properly stored.  Any damage due to customization of your motorcycle is typically also not covered.


• Inquire about policy cost.  Insurance companies assess risk as they determine policy premiums.  Factors such as age, experience, and claim history will all be taken into account as you shop for your motorcycle policy.  As a general rule of thumb, you should expect to pay about 5 percent of the value of your motorcycle in annual premium.  Be certain to ask about discounts.  Ask your insurance agent about writing a policy for your automobile and home if applicable.