Motorcycle insurance is specialized insurance for motorcycles, trucks, cars, and other road-going vehicles. Its principal function is to offer financial coverage against bodily damage or injury resulting from road accidents. It also provides coverage from liability, which can also arise due to wrong acts in a car. This type of insurance is also used to protect the insured’s assets such as savings, investments, life savings, etc. The minimum requirement for motorcycle insurance in most states is a bike that is at least 25 years old.
How do motorcycle insurance policies differ from each other?
Motorcycle insurance policies differ in terms of the types of coverage they provide. Most bike riders, however, are usually covered by bodily injury coverage. This type of coverage offers the rider certain medical expenses and payment for certain rehabilitation services he may need. Other coverage included in the policy includes roadside assistance, emergency road service, compensation for rental or damage costs. The rider incurs these in the event of an accident, coverage against theft or loss of the vehicle, etc.
Another kind of motorcycle insurance policy is offered for off-road adventures. It usually covers the rider for any injuries that may occur while riding the motorcycle off the road. It also covers any damages that may occur to his bike in cases of theft or vandalism. There is also what is known as uninsured motorist coverage in some states. This coverage is not meant to be a substitute for bodily injury coverage. Still, it is provided to ensure that the insured is safe if he meets an accident.
There are certain circumstances under which the motorcycle insurance policy takes effect. If the insured party is driving a more than an eight-year-old car, the law requires him to have motorcycle insurance. In the case of someone is driving a bike, he must get a motorcycle insurance policy.
Some states require two separate policies for people who are driving motorcycles. The first one is for the principal and the second one is for the insurance on the vehicle. The term “principal” refers to the insured whose body is insured. The other one is called “insurance.” It is meant to protect against any liabilities on account of bodily injuries received from any peril on the principal’s road.
How can a full-coverage motorcycle policy benefit the rider?
A full-coverage motorcycle policy means that the primary insurance is given to the principal. In such cases, the rider is not covered for anything except the damages that resulted from the accident. Liability only coverage means that the rider is insured for the injuries or damages to others caused during the accident and that the person is at fault for the accident. Some insurers also include underinsured motorist coverage. Underinsured motorist coverage is given to people who do not have sufficient financial resources to pay for the injuries and damages suffered in an accident.
While taking up a full-coverage insurance policy, the motorcycle owner has to fulfil several legal formalities. The owner has to produce the certificate of motor vehicle registration and his driving license to the insurer. He has to furnish the insurer with the details of the motorcycle and the owner’s name, address, contact details, and driving record. The owner is also obliged to inform the insurer when he is taking the bike for repairs, servicing or whenever he plans to sell the same.
Gap insurance is a kind of specialized insurance meant for motorcycles. It provides coverage for the repair and replacement of the motorcycle if the cost thereof is higher than the bike’s value. Riders take this coverage when they agree to pay the gap insurance fee. Many companies offer gap insurance for motorcycles.
