Learn More About Motorcycle Insurance Coverage
Motorcycle Insurance Coverage
Your bike is, well, your bike. Having the right insurance is an important part of taking care of your bike, and protecting you and your passengers. Nevada General Insurance Company can provide you with motorcycle insurance that best suits your needs, and your budget.
When purchasing motorcycle insurance, you should understand:
The different types of coverage available
- The different limits of coverage available
- The deductible options
- Other available options, such as payment plans, discounts, and claims service
Complying with state financial responsibility laws
Some coverage is mandated by law and will satisfy state financial responsibility requirements. You can’t get your motorcycle registered without "proof of insurance", and you must maintain coverage at all times while the motorcycle is registered or driven in the state. There are strong penalties for non-compliance: fines, suspension of driving privileges, and even jail time for multiple offenses.
In most states a basic limit of liability insurance coverage will satisfy the financial responsibility requirements.
There are other coverage and limits that are optional depending on:
Your personal choices about insurance coverage
- The amount of assets you have to protect
- The age and value of your motorcycle
- The requirements of your loan or leasing organization
Bodily Injury Liability
If you are partially or totally at fault for an accident, this coverage pays for bodily injury to others. Damages you may be responsible for include medical bills, lost wages, replacement services, loss of life, permanent disability, pain and suffering, legal expenses, and other costs allowable by law. The financial responsibility laws of most states make certain minimum limits of this coverage mandatory.
Any serious injuries will far exceed the state minimum liability limits. You can be sued and held personally responsible for damages above the liability limits of your insurance policy. If you own a home or have any assets to protect, we suggest that you purchase higher limits of liability insurance rather than facing the possibility of having to file bankruptcy or pay off a large legal judgment for years.
The Bodily Injury Liability limits are indicated in the first two numbers of the liability description. If your limits are 15/30/10, this means:
No more than $15,000 would be paid in bodily injury payments to an injured person
- No more than $30,000 would be paid in bodily injury payments in total to all injured persons
Property Damage Liability
If you are partially or totally at fault in an accident, this coverage pays for property damage to others, including but not limited to damage to the vehicle, use of a rental car while their vehicle is out of service, loss of business income if related to the accident, or damage caused to other property (this could include personal property that was in the car or damage to landscaping, signs, fire hydrants, etc.).
If you are at fault in an accident that causes damage to a newer vehicle, or to several vehicles, the state minimum property damage liability limits will most likely not be adequate to cover those damages. You can be sued and held personally responsible for damages above the limits of your policy. If you own a home or have assets to protect we suggest that you purchase higher than minimum property damage liability limits rather than facing the possibility of having to file bankruptcy or pay off a large legal judgment for years.
The Property Damage Liability limits are indicated in the third number of the liability description. If your limits are 15/30/10, this means: No more than $10,000 would be paid per accident for all property damage caused.
Physical Damage Coverage
This coverage is also commonly known as comprehensive and collision coverage and pays to repair or replace your motorcycle in the event of loss by collision, theft, fire, windstorm damage, flood damage, glass breakage, or many other events.
Physical Damage Coverage is generally sold with a choice of deductibles. Deductibles are the amounts that you agree to pay for each loss, before your insurance "kicks in." You will pay "out of pocket" for damages below your deductible. Insurers offer a variety of deductibles generally from $50 to $1,000. Because you are paying "out of pocket" on all amounts below your deductible, you can save money in your insurance premiums by selecting higher deductibles. If your motorcycle is financed or leased, the loan or leasing organization usually limits the deductibles (listed in your contract) they will accept.
f you have a late model motorcycle, or your motorcycle is financed or leased, you will likely need physical damage coverage to repair or replace your vehicle in the event of loss. You can save money by purchasing a higher deductible on your policy, but remember, if your vehicle gets damaged you will need to pay the amount of the deductible you chose. You should not choose deductibles so high that you will wind up in a "financial pinch," even though you have insurance.
Insurance companies will typically replace a vehicle rather than repair it when the repair costs exceed the Actual Cash Value of the vehicle. This is the fair market value, not what it’s worth to you.
Medical Payments Coverage
Medical Payments (MedPay) Coverage covers you and your passenger for medical expenses incurred in an accident, regardless of who is at fault. Several limits of coverage are available through Nevada General Insurance Company.
Medical costs after an accident can be very high and automobile Medical Payments Coverage is usually offered in limited amounts. This coverage can supplement a health insurance plan but may not be adequate to cover all medical costs of an accident. You or your passenger may be able to collect from the other party involved in the accident, depending on who is at fault and if the other party has insurance.
Uninsured/underinsured Motorist Coverage
This coverage covers you and your passenger for injuries and damages as a result of an accident where the other party is at fault, but has no insurance or inadequate insurance to pay for all damages. You and other covered persons are paid for the damages you are legally entitled to, above and beyond the limits of the other party’s insurance.
In most states, uninsured/underinsured motorist coverage does not pay for damage to your vehicle. You must purchase physical damage coverage to pay for damage to your vehicle.
In New Mexico, Uninsured Motorist Property Damage Coverage is available to protect damage to your property caused by an uninsured motorist. Check with your agent for coverage and premium rates.
This is an important coverage and the cost in most areas is reasonable. Since this coverage pays for damages caused by an uninsured or underinsured motorist, if you live in a city with a high percentage of uninsured motorists, premium rates will be higher. You can purchase limits of this coverage, up to the limits of the bodily injury liability coverage of your policy. Most state laws make this coverage mandatory, unless you sign a specific rejection of this coverage. Nevada General Insurance Company recommends that you purchase this important coverage.
Some insurers offer "stacked" uninsured/underinsured motorist coverage for an additional premium, providing higher limits of coverage if you have more than one vehicle insured.
Personal Injury Protection or No-fault Insurance
Some states have "no-fault" insurance laws, which vary substantially. While it would be too lengthy to cover this subject in a brief summary, "no-fault" insurance pays the medical bills, wage loss, and replacement services of a party injured in an auto accident, regardless of who is at fault. In most "no-fault" states, the right to sue for minor injuries is restricted. Limits of minimum and optional coverage available and the "right to sue" vary between the states.
Towing and Labor Coverage
This coverage pays the costs for moving your motorcycle after a covered loss. It is limited to a specific dollar amount per incident and is usually inexpensive to add to your policy coverage.
Rental Car Reimbursement
This coverage pays for the use of a rental car when your motorcycle is out of service due to a covered loss. It is limited to a specific daily amount and is usually inexpensive to add to your coverage.
Insurance policies don’t cover all situations. There is no such thing as a "full coverage" policy. Exclusions exist in all insurance policies and generally eliminate or restrict coverage. Read your policy carefully and if you have any questions, check with your agent. Because policies vary between insurance companies, your agent will be most familiar with your policy.