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Choosing the right insurance policy is much
like choosing the right motorcycle. You want it to fit
your needs and lifestyle, but at the same time be within
your budget. Although most states require you to carry a
minimum amount of liability coverage, other types of
coverage are usually optional. Always ask your insurance
agent or company representative which laws apply in your
state.
In order to find out what coverage is best for you, it is
important to understand all the options available.
Liability coverage
Liability insurance covers bodily injury and property
damage that you may cause to other people involved in an
accident. It doesn't cover you or your motorcycle. Find
out if your coverage includes Guest Passenger Liability,
which provides protection in the event that a passenger is
injured on the motorcycle. Whether or not this is included
depends on the laws of your state and the company issuing
the policy.
Collision coverage
Collision insurance covers damage to your motorcycle if
you are involved in an accident. Your insurance company
pays for damages, minus your deductible, caused when you
collide with another vehicle or object. Collision
insurance usually covers the book value of the motorcycle
before the loss occurred.
Comprehensive coverage
Comprehensive coverage pays for damages caused by an event
other than a collision, such as fire, theft or vandalism.
However, just like collision coverage, your insurance
company will pay for damages, minus your deductible, and
will cover only the book value of the motorcycle.
Keep in mind most comprehensive and collision coverages
will only cover the factory standard parts on your
motorcycle. If you decide to add on any optional
accessories such as chrome parts, a custom paint job,
trailers or sidecars, you should look into obtaining
additional or optional equipment coverage.
Uninsured/underinsured motorist coverage
Uninsured/underinsured Motorist Coverage covers damages to
you and your property caused by another driver who either
doesn't have insurance (uninsured) or doesn't have
adequate insurance (underinsured) to cover your damages.
This coverage typically pays for medical treatment, lost
wages and other damages. If your uninsured/underinsured
motorist coverage includes property damage, then your
motorcycle would also be covered under the same
circumstances. Check with your insurance professional to
see if property damage is included or needs to be
purchased separately.
Tips for the cost-conscious rider
Many factors can play a role in determining what your
insurance costs will be such as your age, your driving
record, where you live and the type of motorcycle you own,
or being a graduate of a rider-training course.
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Many
companies offer discounts from 10 to 15 percent
on motorcycle insurance for graduates of training
courses, such as the Motorcycle Safety Foundation
(MSF) rider course. Riders under the age of 25,
usually considered a higher risk, may see some
savings by taking this course. It's also a good
idea for cyclists who have already had accidents.
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Maintaining a good driving record with no violations
will also help reduce your premiums.
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In
many northern states, riders may save money by buying
a
"lay-up" policy. With a lay-up policy,
all coverage except comprehensive is suspended during
winter months.
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Find
out what discounts your insurance representative
offers. Multibike discounts for those insuring
more than one bike, organization discounts, if
you're a member of a
motorcycle association, and mature rider discounts
for experienced riders, are just a few possibilities.
Discounts can range anywhere from 10 percent to
20 percent, depending on the company and your state.
Availability and qualifications for discounts vary
from company to company and state to state.
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Keep
in mind that the type, style (such as a sports bike vs.
a cruiser) and age of the motorcycle, as well as the
number of miles you drive a year and where you store
your bike may also affect how much you pay for your
premium.
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