Choosing the right amount of coverage

There is no formula for determining how much insurance you need. If you own an older bike, you may want to carry minimum coverage to protect against liability claims. However, if you own a new motorcycle, or a customized or vintage bike, you probably need maximum coverage. The most common types of motorcycle insurance policies include:

• Liability insurance: This insurance pays for bodily injury and property damage when you are at fault in an accident.
• Collision insurance: This pays for damage to your motorcycle when you are at fault in an accident.
• Comprehensive insurance: Comprehensive insurance pays for damage to your bike not caused in an accident, such as fire, storm or vandalism damage.
• Comprehensive insurance can also replace your bike if someone steals it.
• Customized parts insurance: This pays to replace customized parts. Many collision and comprehensive policies will not cover customizations that you add to your bike, such as sound systems, custom seating, custom tires or heated grips.
• Uninsured/underinsured motorist coverage: This pays your bodily injury and property damage expenses when an uninsured or underinsured driver causes an accident.

All states require liability insurance, and some states require uninsured/underinsured coverage. If you finance your motorcycle, the lender will require you to carry collision and comprehensive insurance.

State minimum liability insurance requirements vary. Many states require certain levels of liability insurance, including:

• $25,000 in bodily injury coverage to pay the medical expenses of one person in a single accident.
• $50,000 in bodily injury coverage to pay the medical expenses of more than one person in a single accident.
• $25,000 in coverage to pay for property damage in a single accident.

Required liability ratios vary by state. Check the website of your state’s insurance commissioner to find out how much coverage your state requires.

How to save on your motorcycle insurance

You do not have to pay a fortune for motorcycle insurance. Who has the cheapest motorcycle insurance may depend on your specific circumstance and what discounts are available to you. Apply these easy tips for maximum savings:

• Get quotes from several companies: Before committing to an insurance provider, compare rates and coverages to make sure you’re getting the best combination of value and protection.
• Take advantage of discounts: Find out what types of discount programs each insurer offers. Insurance companies often offer discounts for maintaining a good driving record, buying multiple policies and consistently paying your bill on time. In many cases, you can qualify for more than one discount.
• Take a safe driving course: Most motorcycle insurance providers will give you a break on your premium if you complete an approved motorcycle safety course.
• Choose a higher deductible: By increasing your deductible, you will pay more upfront if you have an accident, but you can often substantially reduce your annual premium rate.
• Bundle your policy: If you’re choosing a provider that offers multiple lines of insurance, consider bundling your motorcycle insurance with your home or auto policy. Many insurance companies offer bundled pricing and some apply discounts to every policy you purchase.
• Join a riding club: Many insurers offer discounts to members of motorcycle riding associations.