Published: February 2013
If you have a motorcycle, finding the right motorcycle insurance is probably a priority. But not all motorcycle insurance policies are the same, and depending on who your insurer is, you can get high-quality coverage for great value. If you want some tips on how to compare motorcycle insurance, you may want to consider following this four-step process.
It's possible for you to get good coverage that provides financial peace of mind while still getting good value. Before you agree to sign on the dotted line with an insurance provider, first get quotes from different insurance companies. One of the most important things to do when comparing quotes is to not focus solely on cost, but also make sure to compare quotes that include the same deductibles, limits and optional coverages. And, even if you are comparing policies with the same coverages, it is possible that a company with much lower rates may not offer the same level of customer service or personal access to a designated insurance agent. Make sure to purchase an auto insurance policy that offers you the right coverage at the right price, and also gives you the personal service you deserve.
As you're comparing your quotes, pay close attention to how much liability insurance the policies offer. Liability pays for any damages and injuries that you accidentally cause to other people and their property if you're at fault in an accident. Liability coverage is required in every state, but the required minimum limit differs depending on where you live. The insurance policy you're looking at will very likely meet that mandatory minimum coverage, but ask yourself this question: Will you be able to afford the difference if the damages from an accident go over the required minimum limit? If not, you might want to pick an insurance policy that has the higher limit, even if that means paying more in premiums.
Collision coverage is the part of your insurance policy that pays for damages to your motorcycle. Look at each insurance policy very carefully to determine if they all include collision coverage. Collision coverage is likely mandatory if you are still paying off a loan for your motorcycle. But, if you have already paid off your bike and it is of high value, doing without it is a gamble you may not want to take. Remember, not all insurance policies are identical. Simply by reading the policies, you might discover that the less expensive of the three quotes excludes collision coverage.
Taking out comprehensive insurance coverage on your motorcycle may be a good idea if you're concerned about it being stolen or damaged by hazards other than an accident involving another vehicle—like a fire or a natural disaster. Comprehensive coverage may pay up to the Kelley Blue Book value of your motorcycle if it's damaged or destroyed as a result of a variety of non-accident-related incidents. Adding comprehensive coverage to your motorcycle insurance policy will increase the amount of your premium, so when comparing quotes always look to see if the costliest policy provides this coverage.
All of this serves to remind you that "cheaper" doesn't always mean "better"—just as "more expensive" doesn't necessarily mean "better coverage." When comparing motorcycle insurance rates, always focus on the details, because that's where the majority of the differences lie.