| The Main Components Of Motorbike Insurance |
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| Written by Coleen Smith |
| Monday, 09 August 2010 16:26 |
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Anyone who rides a motorbike or any motorized vehicle on public streets needs motorbike insurance. Of course, it is mandated by law almost everywhere, but more than that you need to be covered in case of an accident. You'll just get the minimum required by law if you call insurance companies and select the one with the cheapest price.. You should look at your alternatives before deciding if that's what you're looking for. These are the major areas of motorbike insurance to look for.
Anyone who rides a motorbike or any motorized vehicle on public streets needs motor bike insurance. Of course, it is required by law in most places, but more than that you need to be covered in case of an accident. It would be simple to just call around and get the lowest price, but then you'll just get the minimum required by law. That may be what you would like, but you should take a look at your alternatives first. These are the chief areas of motorbike insurance to look for. Damage to Your Motor Bike If you cause damage to someone else's person or property, you are liable. They could sue you for the cost of repair or replacement of their property or for medical bills. If you don't have the funds on hand, you could end up paying out of your future earnings. The law requires you to carry liability insurance. The state sets the minimum amounts. For example, in California, you must have $15,000 for death or injury of any one person, $30,000 for all injuries in a single accident, and $5,000 property damage. That's only adequate to cover a small accident. It would hardly begin to cover the costs of a major accident with injuries. If your motorcycle is financed, the lender will probably insist that you carry coverage on it. On the other hand, if your bike is not worth very much, you may find that it's not worth it to purchase this type of coverage at all. Insurance for Your Motor Bike Motorbike insurance can cover repair or replacement of your motorbike if necessary. There are two things you need to think about here: sources of damage and fault. First, damage is usually only covered if it comes from specific sources. Your bike could be stolen, vandalized, burn in a garage fire and so on. Some policies only cover damage from traffic accidents. If you want to protect your investment, you need to think about other kinds of damage. If you leave anything to chance, you should at least know what it is. Second is traffic accidents. If the other party is responsible for the damage, you can collect from their insurance. But what if they don't have insurance, or their insurance is insufficient or it was a hit and run? What if you caused the accident? Is your bike covered then? You also need to think about whether others riding your motorcycle would be covered. Does your policy cover your passenger? What if you loan out your bike and someone else is riding it? You also might want to check your regular health insurance. If you're covered under that, it might make a difference in whether you choose to address the issue in your motor bike insurance policy. Legal responsibility You will be held legally responsible if you cause damage to someone's property or to their person. This means that they could sue you for the cost of repair or replacement of their property or for medical bills. If you don't have the funds on hand, you could end up paying out of your future earnings. Liability insurance is the part that you are required to have by law. Each state sets its own minimum liability coverage amounts. For example, in California, you must have $15,000 for death or injury of any one person, $30,000 for all injuries in a single accident, and $5,000 property damage. That's only sufficient to cover a small accident. It would barely begin to cover the costs of a major accident with injuries. You also need to think about whether others riding your motorcycle would be covered. Does your policy cover your passenger? What if you loan out your bike and someone else is riding it? You also might want to check your regular health insurance. If you're covered under that, it might make a difference in whether you choose to address the issue in your motor bike insurance policy. You should plan to get a few bids before buying a motorcycle insurance policy. Know what you're looking for in a policy and get quotes on similar coverage so that you can compare prices accurately. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Written by Coleen Smith Motorcycle Insurance Comparison Cheap Motorbike Insurance |