Motorcycle Insurance Policies
The Uses and Benefits of Motorcycle Insurance
Just like people need auto insurance, they need motorcycle insurance to protect one of their most important investments. Few people expect to drive around in vehicles and avoid accidents all of the time. Riding in a motorcycle is, even more, dangerous than riding in a car, so motorcyclists are more likely to need insurance.
The main reason to insure a motorcycle is to protect a large financial investment. The average motorcycle costs an average of $5,000 up to $100,000, depending on its features. A motorcyclist wants the bike to have all of the desirable features and include financial protection if any parts get lost, stolen or damaged. After spending tens of thousands of dollars on a bike, the owner does not want to spend any more money on repairs. That is why motorcycle insurance exists to protect an expensive investment made on a custom-made bike.
Types of Coverage
The first step to insure a motorcycle is to review the different types of coverage. Collision insurance covers the damage caused by a collision with an automobile, another motorcycle or a person. Liability insurance covers the injuries and property damages of other people involved in the accident. At the least, the motorcycle needs liability insurance to prevent being hit with a lawsuit.
The policyholder has the option to increase or decrease the rates with discounts. Insurance companies prefer motorcyclists who are responsible with their riding and less likely to get into accidents. Motorcyclists receive discounts by parking their vehicles in garages. They save money when they ride occasionally and restrict the number of riders who use the vehicle.
How It Works
Insurance for motorcycles works like it does for any other vehicle. If an accident occurs, the first step is to file a claim with the insurance company. The claims adjuster reviews the details of the accident using police reports and other documents. Then, the amount of the compensation is calculated and awarded to the policyholder. The majority of the damage is covered by the insurance company, but some costs are out of pocket. If the accident was the motorcyclist’s fault, the insurer may increase the premium rates afterwards.
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