What do collision and comprehensive motorcycle insurance cover?
Last updated: January 1
Collision coverage and comprehensive coverage are two separate parts of a motorcycle insurance policy. Each coverage helps pay to repair or replace your bike if it's damaged in a covered claim. But, collision insurance covers different types of risks than comprehensive insurance.
What is motorcycle collision insurance and what does it cover?
What is motorcycle comprehensive insurance and what does it cover?
Comprehensive insurance helps cover your motorcycle if it's damaged in an incident that's not a collision. Comprehensive typically covers risks like theft, falling objects or vandalism. So, if your bike is damaged in a hailstorm, for example, your comprehensive coverage may help pay to repair it.
Comprehensive coverage does not pay for normal wear and tear on your bike or breakdowns due to lack of maintenance.
How do coverage limits and deductibles work?
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.
Does comprehensive or collision cover custom bike parts?
Collision coverage and comprehensive coverage typically apply to only the standard parts your bike was fitted with when it came off the line. Parts, such as accessories that were installed by the original manufacturer before your purchase, and that are listed on your original sales order, typically fall under your comprehensive or collision coverage.
Motorcycle parts added after the initial purchase may require optional equipment coverage, which can be added to your policy. You may want to look into purchasing additional equipment coverage if you add accessories or custom parts to your bike.
Is there such a thing as 'full coverage' motorcycle insurance?
"Full coverage" motorcycle insurance does not exist. Typically, when people talk about "full coverage," they are referring to a combination of coverages on a motorcycle insurance policy.
Certain coverages are required by state law. For example, motorcyclists in most states are required to have motorcycle liability coverage.
Other coverages — such as comprehensive coverage or collision coverage — may be optional if you own your bike outright. If you lease or finance your motorcycle, your lender may require you to purchase collision coverage and comprehensive coverage until your bike is paid off.