Collision coverage and comprehensive coverage each have their own coverage limits. A limit is the maximum amount your policy will pay for a covered claim. You are responsible for costs that exceed your coverage limit.

The limit for collision coverage is your motorcycle's actual cash value. The limit for comprehensive coverage is also your bike's actual cash value. Actual cash value takes depreciation into account.

Collision coverage and comprehensive coverage each have a separate deductible. The deductible is the amount you pay out of pocket toward a covered claim. You select your deductibles when you buy comprehensive and collision coverage.

Let's say you have comprehensive coverage with a deductible of $500. Your motorcycle is totaled in a covered claim when a tree falls on it. Suppose the bike's actual cash value before the tree smashed it was $8,000. Your insurer would cut you a check for the motorcycle's actual cash value, minus your deductible. So, in this situation, your policy would reimburse you $7,500. If you wanted to replace your totaled bike with a brand-new motorcycle that costs more than $7,500, you'd have to pay the rest out of your own pocket.