Motorcycle insurance is similar to car insurance in that Tennessee law requires every driver to have it. What is included in your plan is in some way up to you. Besides legal reasons, there are benefits to having a comprehensive motorcycle plan. Insurance is designed to protect you from financial obligations that can quickly become unaffordable. If you’re thinking about purchasing a bike and are shopping for a policy, we’ve addressed below what you should look for in a plan.
What is Motorcycle Insurance?
Motorcycle insurance is much like car insurance by offering drivers financial coverage in case of an accident or damage to property. Every insurer will offer different coverage options, but each one should include basic policy coverage such as liability and collision coverage. Tennessee residents are legally required by law to obtain motorcycle insurance to drive on the road. Current regulations state minimum coverage should include:
- $25,000 for bodily injury per person
- $50,000 for total bodily harm if multiple people are hurt in the accident
- $15,000 for property damage
How Much will Motorcycle Insurance Cost?
The cost of your monthly premium is based on the bike you have and the amount of coverage you want. Higher speeds and racing bikes are a little more dangerous and will cost more to insure. When horsepower and the weight of the bike make it easier for riders to weave in and out of traffic, insurance companies will require higher premium costs to help balance out the potential for injuries.
If you plan on using your bike for racing or taking long trips, you might want to consider increasing your coverage amount to help protect in case of damage to the motorcycle or bodily injury.
What Should be Included in Motorcycle Insurance?
Liability Coverage
Most states require riders to obtain insurance with liability coverage. Liability coverage is used in the instance the rider is found at fault when there is an accident or damage to another person’s property. Motorcyclists often believe that with such a small bike they aren’t required to take out much for insurance. Liability isn’t designed to protect your bike as much as it is intended to cover the other person’s medical bills, lost wages, and the damages sustained to their vehicle.
If there is a lawsuit in place, after you are found at fault, liability insurance will pay for lawyers and the money you owe for their expenses. Think carefully about the limit you choose. If the accident and lawsuit amass to $50,000 and your policy only extends to $25,000, the rest will be paid out your pocket unless you decide to take out more or invest in umbrella insurance.
Uninsured/Underinsured Coverage
Obtaining insurance is required by law, but many drivers don’t have it. Uninsured coverage helps when there is an accident, and the other person doesn’t have any form of insurance. The coverage will help you repair damages you’ve sustained. Underinsured coverage means you’ll receive compensation if the damages exceed the amount of liability insurance of the other driver.
Collision Coverage
Motorcyclists who have purchased their bike using a loan are often required to have collision coverage. The lender will ask for this coverage to be on the policy in the event of severe damage between two vehicles. Until the loan is paid in full, the motorcycle is technically the property of the lender. If it’s damaged beyond repair, they will lose out and therefore want financial compensation.
Comprehensive Motorcycle Coverage
Frequent use of a motorcycle should warrant comprehensive insurance. Look for a plan that will cover a wide variety of issues. For example, if you plan to take others along with you, you’ll need a policy that includes passengers. Theft isn’t always included in your policy. If you’re concerned, add it to your premium. Other things to consider are fire damage and vandalism. There are also accidental damages sustained from elements such as hail, deer, and children playing.
Looking for comprehensive motorcycle insurance? Contact Royce Williams today to get a free quote.
