A motorcycle insurance policy is supposed to pay for damage from a variety of damaging accidents that might harm you, your bike or others. However, policies won’t cover everything, even if you have expansive coverage and high financial limits. Like most insurance policies, motorcycle coverage will have its restrictions. What are some of these?
Elements Limiting Your Coverage
Like most auto insurance, motorcycle policies won’t pay 100% of the costs you might face in case of a problem. Your policy will almost always contain quite a few regulations and limits that could force you to pay certain costs out-of-pocket.
•All policy elements will include maximum amounts, called limits, that they will pay in case of a claim. For example, if you carry $25,000 in property damage liability protection, the policy will pay at most $25,000 in case of a claim on this coverage.
•Sometimes, damage costs will exceed the bike’s value. In this case, the insurer might total your bike, meaning you will likely have to get a new one. Still, the policy might not pay you the full amount for a new bike. Some policies only offer the actual cash value. Cash value is the bike’s depreciated cost, not the cost of a new one.
•In some cases, you will still owe money on your bike even if you total the vehicle. Still, a cash value payout might not provide you with enough money to pay off the bike’s loan. You could face additional costs for a bike you no longer have.
•Policies might not cover accessories you attach to the bike or the possessions you carry with you.
•Many parts of your policy include deductibles. A deductible is a portion of a claim cost that you are responsible for paying. For example, you might have a claim for $3,000 in damage to your bike, but you also have a $500 deductible on the policy. Therefore, you will pay the $500 deductible towards the damage costs. The insurer will then pay the remaining $2,500 towards the claim, since ($3,000 - $500 = $2,500).
•Policies often specifically exclude certain damage or losses from any type of coverage. Therefore, should your loss fall into an excluded category, you’ll receive no help.
Getting Full Coverage to Start
Never assume that motorcycle insurance will pay for any of your personal losses. Your state might require you to carry coverage, but that minimum protection might only provide the most-limited protection. Usually, you will need to increase your protection to your specific benefit. Some of the policy elements you’ll need might include:
•Liability insurance: Most states require this coverage. It will help the policyholder pay for a third party’s personal damage costs if the policyholder is responsible for their losses. In other words, if you cause a wreck, you might have to pay for it.
•Collision insurance: This coverage will pay for the physical damage to your own motorcycle if you have a wreck,
•Comprehensive coverage: More than just wrecks could damage or destroy your bike. If it becomes the victim of theft, vandalism, fire or weather damage, this coverage pays.
•Uninsured/underinsured protection: An at-fault driver might cause you or your bike harm, but they might lack the liability insurance to compensate you. This coverage can help you pay for your own losses.
•Medical payments coverage: If you get hurt in a wreck, this coverage might help you pay your medical bills.
•Gap coverage: This protection might help you pay for the value of your loan in case you total your bike.
•Personal items coverage: This insurance pays for belongings you carry on the bike.
•Learn about the top 3 specialized coverages you can added to your plan.
Making Sure You Get the Appropriate Protection
Yes, it is important that you choose as many of these policy options as you think you might need. However, they will prove worthless if you don’t tailor them to your bike personally.
•We recommend that policyholders carry more than the minimum liability limits required by the state. The more protection you have, the more of someone else’s costs your policy might cover.
•Ask your agent if your policy will pay for the replacement cost value, rather than the cash value, for a totaled bike. With replacement coverage, you’ll get a payout similar to the cost of your bike when it was new. This might mean a rate increase, though.
•The higher deductible you carry, the more you might be able to save on your premiums. Still, you don’t want your deductibles to run so high that you can’t afford to pay it in case you file a claim. Let your agent help you balance your coverage.
•Sometimes, you might have to specifically name others who will ride the bike for them to receive coverage under the policy.
•Policies might not cover accessories you attach to the bike unless you declare them to the insurer. Policies might likewise not apply to personal possessions that you carry with you on a ride without a declaration either.
Talk to your agent about any special ways that you use the bike. They might be able to recommend specialized coverage that can better protect you as you need. Contact us to get a Georgia motorcycle insurance quote today, 706-277-1707.