Motorcycle insurance protects your motorcycles in the event of a motorcycle accident. Motorcycle owners should purchase motorcycle insurance so that they won’t suffer from a financial disaster. Nowadays, many people purchase the full coverage policy because they assume that it offers protection for them in all the categories. In truth, the full coverage policy only covers some type of damages.
The most important coverages in the motorcycle insurance are liability, equipments, collision, medical cost and safety apparel insurance. The optional coverages of the motorcycle include uninsured/underinsured motorist, transport trailers, and towing and roadside assistance.
Liability insurance offers coverage against personal injury damages such as medical cost, salary, and injury. Most of the states require you purchase a minimum coverage of $15000/$30000. If you are responsible for the accident, the insurance company will offer compensation in between $15,000 to $30,000 per person.
Safety apparel coverage offers compensation for safety apparels such as helmets, leathers and clothes if an accident happens. In equipment coverage, you will get compensation for custom painting and chroming.
Uninsured/underinsured motorist coverage offers compensation in case the damage of your motorcycle is caused by a person that is not insured. If the other party has insufficient insurance, your insurance company will compensate up to the agreed amount. For instance, you have an insurance of $80,000, and the other party has $20,000 in coverage. If the damages of your motorcycle cost $100,000, the insurance company will compensate you in full $80,000 so that you can obtain a full recovery of $100,000.
The towing and roadside assistance offers tow truck help if your car is break down in a place that is far away from your home. Collision coverage will pay for the repair cost of your motorcycle. Most collision coverage requires you to pay a deductible amount of $250, $500 and etc before the insurance will become valid.
Medical payment coverage offers payment for your medical bills during an accident. If you hold a health insurance, you don’t have to purchase the medical payment coverage. The umbrella policy offers coverage for your assets. It can offer compensation of between $1,000,000 – $2,000,000. It is relatively inexpensive compare to the coverage it provides.
The premium for the motorcycle insurance can be paid monthly, semi annually or annually. The premium payment is fixed throughout the term of the insurance. The cost of the premium already includes management fees. Most insurance companies use motorcycle premiums to invest in fixed income securities, which is subject to risk associated with economy inflation and interest rate.
Before buying motorcycle insurance, you should check with the state department to find out the minimum requirement. If you are not sure about the minimum requirement, you can ask your insurance agent. The insurance agent will let you know the minimum coverage of your home.
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