Motorcycle insurance protects a motorcycle rider’s financial well being by covering the repair and medical cost due to damage in an accident, theft or loss. In almost every state, it is compulsory to purchase motorcycle insurance to protect you or the driver from the financial burden of having to pay high medical or repair costs in case of an accident.

Motorcycle insurance works in almost exactly the same way as car insurance. It includes physical injury and property damage liability insurance. You can even buy additional coverage such as comprehensive and collision insurance as add on to you motorcycle insurance.

You may purchase separate motorcycle insurance, or you can add your motorcycle to your existing auto insurance that you have, say for your car. But keep in mind that your auto insurance won’t automatically cover your motorcycle; you will have to get it added specifically. In any way, insurance for your motorcycle protects you from liability to yourself, to the other party in an accident, or to passengers in your car. It also covers you against any theft or damage to your bike, including both collisions with other vehicles or with stationary hazards.

Even though they’re similar, car insurance and motorcycle insurance are two different products. As a four wheeler will have different operating standards than a two wheeler, you cannot apply a four-wheel policy to your two-wheel bike. Following differences are taken into account when comparing motorcycle insurance and car insurance

• You’re more likely to carry passengers in a car, so car insurance includes passengers in general policy. While in motorcycle insurance it is expected that only one person rides a motorcycle, you will have to purchase additional coverage for someone who rides with you on your motorcycle.
• You’re more likely to suffer an injury on a motorcycle. The personal injury protection portion of a motorcycle insurance policy may be more expensive than for a car as it is more risky to ride a motorcycle than driving a car.
• You can adjust your insurance as per the time you use your motorcycle. Car is used round the year irrespective of the season while motorcycles are used less in winters. Many people ride their motorcycles seasonally or in weekends only so they can get a cheaper insurance according to their riding habits.
• Motorcycle insurance also covers protective accessories like helmet and protective clothing as it is compulsory to wear these accessories while riding a motorcycle. But in car insurance coverage is only provided for the vehicle and its passengers.

Both car insurance and motorcycle insurance are mandatory in most states before you get behind the wheel (or, in this case, the handlebars).

There are few considerations to take note of, before you decide how much motorcycle insurance you should get.

• How much you’re required to get in your state. Many states have set up minimum amounts of coverage you need before you’re legally allowed to get on your bike. Most people think that getting the minimum requirement covered may be enough, but it may not be enough to cover your actual requirement
• How much you can afford to pay out of pocket for damage and injuries. Medical and repair bills may far exceed your insurance policy’s coverage limits if you purchase too little, so getting more coverage could end up saving you thousands of dollars.
• You also need to take into account all the safety gear. Helmet and the motorcycle jacket protects you from road rash when you go down. Coverage may even extend to accessories like saddlebags, radios, and seats.
• Original equipment manufacturer (OEM) endorsement. Auto insurance can be enhanced by adding endorsements, which are optional policy provisions that may increase your premiums. Any repair shop engaged by the insurance company is compelled to use official replacement parts when fixing your bike under this endorsement.

Motorcycle insurance includes the same coverage categories as car insurance.

• Liability insurance: Motorcycle insurance has two types of liability coverage; physical injury insurance and property damage insurance. Ensure that you are covered sufficiently to pay for damages if you get into an accident.
• Personal injury protection (PIP): It is similar to health insurance but can cover a wider range of costs in addition to medical expenses like lost wages, and related damages that you cause to yourself or people riding with you.
• Comprehensive insurance: This covers the cost of repair or replacing your motorcycle in case of vandalism or theft that happens when it’s not being driven.
• Collision insurance: This covers the cost of damage you cause to the bike from accidentally driving into something, whether stationary or another vehicle.
• Uninsured/underinsured motorist coverage: This helps in covering the difference when the other party is at fault in an accident but doesn’t have enough coverage to make you whole.
• Guest passenger liability insurance: A part of motorcycle insurance that works like PIP and provides protection to any person riding on the motorcycle with you. It covers medical payments.

Most motorcycle insurance companies are rated as per customer satisfaction and financial strength. Some of the best rated motorcycle insurance companies are:

• Geico
• Safeco
• Progressive
• USAA
• Allstate

Companies like Markel and Dairyland provide coverage for specific consumer categories. Markel offers features best suited to bike enthusiasts such as deductibles reducing each year and many money-saving features. Dairyland on the other hand has plans for occasional riders which allow them to reduce coverage when bike is not in use and thus helps save money.

Many companies offer multi-policy discounts, so if you already have a car insurance (or home, or renters) policy with a company, you may be able to save on one or both by purchasing your motorcycle insurance through them, too.

The search to get cheaper motorcycle insurance begins even before you purchase a bike. This is because more expensive bikes, with larger engines and fancy builds, are usually much more expensive to insure. If you spend all your money on the bike itself, you might not have anything left to pay for your motorcycle insurance premiums. The type of your bike (regular or sports) makes a lot of difference to your premium amount. The difference in premiums could be hundreds of dollars per month.

Insurance companies charge premiums depending upon the size of the engine, smaller the size lower the premium. You’ll possibly get a lower rate if your bike is built for durability instead of horsepower. Your insurance premium also depends on how much coverage you need. But there are other factors also which affects the cost of motorcycle insurance such as

• Your age: The longer your experience of driving motorcycles, the lower your premiums will be. Don’t expect a great deal if you’re still young and don’t have a verified history of motorcycle safety.
• Your gender: Male riders usually pay more for their motorcycle insurance. Insurers have the statistical data showing that male riders are more prone to risky activity.
• Your location: If you live in a rougher neighbourhood, there’s a higher chance of accidents or insurance claims and insurance company may end up having to replace your bike. They’ll charge you more for coverage than someone who lives in a less risky area.
• Your driving record: Your driving record indicates how much risk you pose, that you’ll cause damage to yourself or others. If you have a history of traffic violations, be prepared to pay more for premiums.

In order to save on premiums combine your motorcycle insurance with the car insurance you already have. When combining insurance policies, carriers frequently allow you to pay a single deductible, which could save you even more money when you file a claim. Check with your insurance company, if it offers this feature. Other discount options are safe-rider and mature rider discount, multi-vehicle discount, discount for living in a certain location, discount for joining a motorcycle riding association. These are just primary discounts available; there can be many more such discounts.

As moped and scooter are similar to motorcycle in performance, some states require them to be covered under motorcycle insurance so that they can be legally used. Depending on the size of the vehicle’s engine and speed, you may be able to purchase less coverage in the various components of auto insurance. Rates may be comparable to those offered to cover a motorcycle at similar coverage limits.

Traditional motorcycle insurance companies cover trikes and motorcycle with side cars. Insurers also cover other vehicles ranging from your cruiser to your high-performance sport bike. They may also cover your dirt bike, or your custom, antique, or vintage motorcycle. Special insurance policies may be required for off-road bikes like all-terrain vehicles (ATVs), but carriers will vary so will their rates. Typically, the harder and more expensive the bike is to repair, the more you’ll pay in premiums to help counterbalance the motorcycle insurance company’s costs.

There are certain uses of motorcycle that are not covered. In such cases you may have to purchase a separate policy. These are use of motorcycle in competitions or on tracks and use of motorcycle for business purposes. For competitions you may have a temporary policy and for commercial purpose you can get a commercial motorcycle policy.

Policygenius’ editorial content is intended for informational purposes and not written by an insurance agent. It should not be taken as financial or legal advice. To learn what financial products are right for you consult a professional.