Hello! I'm Dan Lyles with Lyle's Insurance. And in this video, we're going to go over the basics of a motorcycle insurance policy.
There are five major parts to motorcycle insurance, and they're the same five components as what you would see in an auto insurance policy. They are liability coverage, uninsured and under-insured motorist coverage, medical payments coverage, comprehensive coverage, and collision coverage. We're going to go over each one.
Liability coverage is required on all policies in all states. It applies when you're at fault in an accident and caused injuries and/or property damage to others. So in other words, this coverage pays “the other guy”.
Uninsured and Under-insured motorist coverage applies when another driver hits you. And they are at fault. And they either do not have liability coverage like they're supposed to be carrying, or they don't have enough liability coverage to cover all of your injuries or property damage. That's where either one of those kick in.
For medical coverage, different states use different terms. Some states call it medical payments coverage. Some states call it medical benefits coverage. And other states call it personal injury protection. Just remember that they all mean about the same thing. They cover you and your passenger for injuries in an accident regardless of who was at fault.
The last two parts of a motorcycle insurance policy kind of go together. Comprehensive and Collision coverage, you hear many people refer to having both as having “full coverage”. I personally don't like that term because it's misleading. But when you hear somebody say they have full coverage, what they mean is they have both comprehensive and collision coverage on their policy. They’re the actual parts that make up the physical damage coverage on your motorcycle. And the best way to learn it is to remember it backwards. Collision coverage pays for damage when you're in an accident. Comprehensive covers everything else. Examples of comprehensive: theft, fire, vandalism, weather damage, hitting a deer, things like that.
If you choose to take out comprehensive and collision coverage on your motorcycle, it's important that you understand how deductibles work. Deductibles are your out-of-pocket expense if you ever have to file a comprehensive or collision claim. And the way it works is, it pays for damages up to the value of your motorcycle minus whatever deductible you took out. So for example, let's say you have a claim that's two thousand dollars worth of damage, and you have a five hundred dollar deductible. Your claim is going to pay out fifteen hundred, the difference. And so deductibles have an inverse relationship with price. Meaning the lower deductible the higher the premium, and vice versa.
Finally, here's a quick tip about helping you find the best motorcycle insurance rate. It's going to be very time consuming if you try to get a quote one company at a time. What I would suggest is to go through an independent agent who has multiple motorcycle insurance companies. That way, you can get several prices at once. This is the most efficient way and probably your most likely way to find the best rate. I hope this video has taught you what you need to know about the basics of motorcycle insurance. Thanks and have a great day!
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..