Motorcycle Insurance

5 crucial considerations for motorcycle buyers

Kevin McCrea walked away unscathed from motorcycle crashes at death defying speeds of up to 150 miles per hour during his days of racing professionally.

And he has seen bikers killed or seriously injured in crashes at just 30 miles per hour, relatively slow motion to the veteran racer turned accident investigator.

The difference between living to ride again and becoming yet another motorcycle-fatality statistic can often can boil down to a few hundred dollars worth of safety gear, ranging from the right helmet to the right boots. Riding a motorcycle can be one of the most thrilling ways to get around, yet it can also be one of the most dangerous. That’s why finding good motorcycle insurance is part of the preparation process.

In a telling statistic, organ donations stemming from motor vehicle accidents have risen 10 percent in states that have repealed helmet laws, according to a 2009 Michigan State University study. But here's the good news: Observing a few basic safety rules might just mean that you walk away from a crash instead of being wheeled off to the morgue.

"If you have a 5-cent head, get as 5-cent helmet," warns McCrea, who lives in Boston, where he once ran for mayor. "I have a $500 helmet."

Here are five rules of the road for newbie bikers:

• Take a basic road safety course: The Motorcycle Safety Foundation offers courses across the country aimed at both beginners and veteran riders in need of a brush up. Over the course of the weekend, you'll learn how to take corners and swerve to avoid everything from slow-moving cars to children chasing balls. The beginners' course features 10 hours of riding at a training course and five hours of classroom instruction. The cost is in the $200 to $250 range and helmets are provided. Completion of the course may qualify you for a discount from car insurance companies, notes Robert Gladden, the safety foundation's vice president. And in many states, graduates of the course are not required to pass the mandatory skills test needed to get their motorcycle operator's license, he said.
• Buy the right equipment: You'll need the right helmet (one approved by the Department of Transportation), a biker's leather jacket or some other riding coat, padded motorcycle pants that come to your ankles, and boots. And don't forget the gloves. The total ensemble may cost you around $500, McCrea says. Your local dealership is the place to shop. This is an outfit riders should get, even if they are buying a lower-speed bike, such as a scooter, Gladden says. "You are going to spend a few hundred bucks, but it is cheaper and less painful than a trip to the emergency room."
• Curb your enthusiasm: If you are new to motorcycles, don't let your enthusiasm get the best of you. Pick the right bike. A big, bad, loud motorcycle may look cool, but it's also much harder to ride and control. Start off with something smaller. The gas mileage, up to 70 miles per gallon for smaller bikes, will blow you away, Gladden says. "It's a good idea to get a motorcycle whose size, weight and power are compatible with your skill level," the MSF's Gladden advises. "Don't buy more bike than your skills can handle."
• Get the right coverage: You'll need motorcycle insurance coverage before you hit the road. While less than car insurance rates, the cost of motorcycle insurance is not negligible.  You will need to cover the cost of repairing your bike and you may also want to buy a death benefit and disability insurance as well. Allstate offers a motorcycle insurance package that includes all three for about $24 a month. The death benefit provides $10,000 in coverage, while the disability policy pays $100 a week, says Kerri Nguyen, a spokesperson for Allstate. Because the industry is competitive, be sure to compare auto insurance quotes.
• Even if you are a veteran motorcyclist, don’t be afraid to polish your skills: The Motorcycle Safety Foundation offers a "returning rider" course. McCrea tells the story of a buddy of his who wanted to get back into biking after 20 years off the road. After some cajoling, his friend, a helicopter pilot during the Vietnam War, relented. "He was very macho and very mechanical and he called me after the class was over. He could not thank me enough, saying, ‘I learned so much. I had no idea what I was doing.'"

 

Insurance for your motorcycle

Before you get your motor running and get out on the highway, make sure you have the right motorcycle insurance coverage.

Forty-nine states require bikers to buy liability motorcycle insurance (all except Florida), according to Leah Knapp, spokesperson for Progressive. She says there are a dozen states that require some form of personal injury protection for motorcyclists but most states don't require motorcyclists to have uninsured/underinsured motorist coverage.

To find out more about state requirements, read the state insurance requirements for motorcycle insurance.

If you took out a loan to pay for your motorcycle, your lender might require comprehensive and collision coverage, as well. You might consider medical payments coverage, especially if you don't have health insurance. Medical payments will cover the costs of treating you and any passenger on your motorcycle, even if the accident is your fault.

If you've added custom parts, you'll need to purchase extra coverage to have them fully insured.

Keeping costs low

Insuring motorcycles can be pricey because of the high risk they pose.

Knapp points to specific coverages that cost more: "Uninsured motorist coverage is more expensive for a motorcycle than a car," she says. "That's because if a car is hit by an uninsured driver, the occupants are protected by a steel cage. If a motorcyclist is in an accident with an uninsured driver, injuries can be quite extensive or, worse, permanent. For those same reasons, medical payments coverage is also more expensive for a motorcycle than a car."

According to the National Highway Safety Administration, the fatality rate of motorcyclists is 6 times the rate of passenger car occupants. Also, in 2007, 103,000 motorcyclists were injured in accidents — 15,000 more than the year before. The top causes of fatalities and injuries to riders was alcohol use (27 percent with a blood alcohol concentration over 0.08 percent) and speeding (36 percent).

Most major car insurance companies offer motorcycle coverage.

"Motorcycles can be insured as either an endorsement on an existing policy or a stand-alone," says Knapp. "Stand-alone policies are a better way to go because endorsements to an auto policy generally don't offer the specific coverages that motorcyclists tell us they want and need. Endorsements don't always give insurance companies enough information to set accurate prices and that can limit their ability to offer competitive pricing."

Also, when motorcycles are insured on stand-alone policies, extras can be added like custom parts, safety-riding apparel and extended coverage for custom-made motorcycles.

Insurance pricing looks at the model of motorcycle, climate (meaning where in the country you will be driving it primarily) and your driving record.

Even though there is increased risk with motorcycles, costs can be offset if you don't ride your bike year-round.

"A motorcycle is driven less throughout the year than a car," explains Knapp. "Even in warm climates, the vast majority of motorcycles are considered "optional" transportation, not primary. Motorcyclists are found to be less "at fault" in accidents than car drivers."

Jeanne Salvatore of the Insurance Information Institute offers these tips for reducing the cost of motorcycle insurance.

Insure it part-time

Some motorcycle fanatics drive their bikes year-round, but many bikers let their wheels hibernate for at least three months. There's no need to fully insure your cycle if it's stored for an extended period of time. Many insurers offer seasonal policies that cover your bike for six- to nine-month periods.

Take a motorcycle-safety course

Some states require these courses before they'll issue a motorcycle license. Even in states that don't, you can count on a 10 to 15 percent insurance discount for completing one. Check with your insurance company before you sign up; some insurers recognize only certain programs. If you've been riding for a while, you might be able to get a discount for brushing up on your riding skills.

Increase deductibles

A deductible is the amount of money you have to pay before coverage kicks in. The higher the deductible, the lower your premiums. Make sure you can afford to absorb the cost of the deductible you choose.

Double up

If you've got more than one bike, or if you live with someone else who rides, you can usually get a multiple-vehicle discount. Likewise, there are likely extra savings if you insure your motorcycle and home with the same company.

Install an antitheft device

If you've got a nice bike, or if you financed your bike, chances are you've taken out comprehensive coverage. Comprehensive coverage protects against theft, fire and other damages not caused by an accident. Some insurers offer a discount on comprehensive coverage if you have an antitheft device such as Lojack.

Maintain a good driving record

Insurance companies use your driving history to help determine rates. How you drive a car usually indicates how you'll ride a motorcycle. If you've only recently obtained a driver's license, you might want to wait a year or two before getting a motorcycle. Provided you stay out of trouble, your insurance rates will be lower once you're an "experienced" driver.

Also, maintaining a "claims-free" status, paying your premium on time and having no accidents or violations will help.

 Ride with "brothers and sisters"

Membership in a motorcycle club, such as the American Motorcycle Association, BMW Motorcycle Owners of America, Harley Owners Group, Retreads and Triumph International Owners Club, can also shave some bucks off the insurance premium.