Understanding the Basics of Motorcycle Insurance
If you’re about to insure your first motorcycle and already own a car, you’ll find that some aspects of the process and policy are similar. However, there are also significant differences that can impact the cost and coverage of your motorcycle insurance.
One of the similarities between insuring a motorcycle and a car is the likelihood that you’ll be required to do so. Only New Hampshire and Florida don’t require that motorcycles be insured. In both states, however, bikers and drivers who don’t carry insurance must prove they have sufficient financial resources to cover potential liability in an accident.
Auto and motorcycle insurance share the same basic components. The core protection is liability coverage, which includes bodily injuries and property damage to others. You can also protect your vehicle against accident damage with collision coverage and against non-collision events like theft or fire with comprehensive coverage. Additional options cover injuries you or your passengers sustain in an accident.
Some owners choose to insure their motorcycle for only part of the year, similar to how some people do with sports cars and RVs. This can reduce annual premiums but may not be worth the savings due to potential risks.
Key Differences Between Motorcycle and Car Insurance
While these basics are similar, motorcycle insurance differs from car insurance in several important ways that can affect the cost and protection of your policy.
Policies Generally Cost Less
Motorcycle insurance typically costs less than car insurance. One reason for this is the lower propensity for motorcycles to injure others or damage their property. This makes liability coverage generally less costly for two-wheeled vehicles. However, it’s worth noting that motorcycle riders and passengers are five times more likely to be injured in accidents than people in cars, according to the National Highway Traffic Safety Administration.
The lower value of motorcycles compared to cars also helps keep premiums down. While it’s possible to pay as much for a motorbike as for an automobile, the average bike in 2024 was only a quarter as expensive as the average car: $12,000 compared with $48,000. This lower value reduces the cost of many claims under the collision and comprehensive components of motorcycle insurance.
Coverage for Your Passengers
When insuring a car, mandatory bodily injury liability coverage may cover costs like medical expenses, lost wages, and pain and suffering if your passengers are hurt in an accident. With motorcycle insurance, however, passenger coverage isn’t always standard. Depending on where you live, your required liability coverage might extend to your passengers, but this is not guaranteed.
It’s also possible that your passengers who are injured in an accident where another driver is at fault will be fully compensated for their injuries from that driver’s insurance (assuming you don’t live in a no-fault state). To ensure coverage, you may need to pay extra for passenger protection. Two options include personal injury protection (PIP) coverage, which pays for medical expenses and lost wages up to a certain limit regardless of who caused the accident, and medical payments coverage (MedPay), which covers medical bills but not necessarily lost wages or other expenses.
Not all states offer PIP or MedPay coverage. If your insurer doesn’t offer these options when you’re shopping for a policy, you should ask about this coverage, which is recommended even if you only ride with a passenger occasionally.
Accessories Coverage Can Be Especially Important
Compared to a car, there’s more opportunity—and, for many, more appeal—to personalize a factory-equipped motorcycle with modifications like custom graphics, seats, wheels, and exhaust systems. If such a tricked-out bike is in your garage or on your bucket list, it’s important to review what’s covered under the standard terms of your insurance policy so you can add any coverage needed to protect your investment.
While some motorcycle insurance policies, especially those that include collision and comprehensive components, include custom parts or equipment (CPE) coverage, it’s not always a given. You may find it worthwhile to purchase a special CPE add-on. This additional protection may also be a good idea if the types of accessories or value of the CPE coverage that comes standard with your policy falls short of what you’d need if you have to repair, restore, or replace your modifications.
You also need to consider the possibility of theft or damage to your motorcycle helmet, especially if you have one of the high-end models that can cost up to $1,000. If your helmet is stolen from or damaged in your home, it may be covered under your homeowners insurance, subject to your deductible. But if it’s damaged while you’re on the road or storing the helmet on your parked bike, your homeowners insurance may not provide coverage for it. To fully protect the helmet, you’ll need to review the coverages under your motorcycle insurance policy and purchase a CPE add-on as necessary.
