If you own a motorcycle and plan to ride it on public roads, most states require some form of “financial responsibility.” This means you can pay if you cause an accident and cause property damage or injuries. Most bikers satisfy financial responsibility laws by purchasing motorcycle insurance.
Motorcycle insurance requirements vary by state and some states require very little. For example, in Florida, you are required to follow Florida’s no-fault law, which requires minimum coverage of $10,000 in personal injury protection and $10,000 in property damage liability. If you want to ride without a helmet, you’ll need a minimum of $10,000 in medical insurance coverage.
Florida’s minimum requirements are woefully inadequate, and even if your state has more stringent requirements, it’s smart to buy more than the minimum coverage amount.
Here’s how to customize a motorcycle insurance policy so that you’re riding with good insurance protection.
Motorcycle Insurance At-A-Glance
| Type of coverage | What it covers |
| Liability insurance | Pays for injuries and damages you cause to others |
| Guest passenger liability | Pays for your passenger’s medical expenses if you cause an accident |
| Uninsured/underinsured motorist coverage | Pays for medical expenses if you’re hit by someone who doesn’t carry any liability insurance or not enough to cover your medical bills |
| Medical payments (MedPay) | Pays for you and your passenger’s medical expenses, no matter who caused the accident |
| Personal injury protection (PIP) | Like MedPay, covers you and your passenger’s injuries no matter who caused the accident, and also covers lost wages and replacement services for tasks you can’t do |
| Collision insurance | Pays for repairs to your motorcycle for collision into objects such as fences and guardrails |
| Comprehensive insurance | Pays for motorcycle theft and damage from fire, floods, vandalism and more |
| OEM endorsement | Ensures original equipment manufacturer parts are used to repair your motorcycle |
| Custom parts and equipment coverage | Pays to repair or replace custom and aftermarket parts |
| Total loss coverage | Helps replace your totaled motorcycle with a new or similar motorcycle |
| Roadside assistance | Pays for certain expenses related to a mechanical or electrical breakdown, such towing or fuel delivery |
| Trip interruption coverage | Helps pay for meals, lodging and transportation if you are stranded due to a mechanical or electrical breakdown |
What Does Motorcycle Insurance Cover?
When you put together a motorcycle insurance policy, you can choose among several different insurance types to cover a wide range of problems. Here’s a look at the most common insurance types.
Liability Insurance
This core coverage type pays for injuries and damage you cause to others. For example, if you cause an accident and someone gets hurt, liability will cover the injured person’s medical bills—up to your policy’s limits. It will also cover property damage, such as car dents you cause
Liability insurance also pays for a legal defense if someone sues you because of an accident.
When you purchase motorcycle liability insurance, you might see it written as a series of numbers, such as 25/50/25. Here’s what those numbers mean:
- $25,000 for bodily injury to one person in one accident
- $50,000 for bodily injury to multiple people in one accident
- $25,000 for property damage in one accident
Buying low limits of liability insurance is a way to cut your insurance costs, but could cost you far more later. If you cause an accident with expensive injuries and/or property damage to others, they can still sue you if your insurance runs out.
Guest Passenger Liability
If you cause an accident while on your motorcycle, this coverage pays for your passenger’s medical expenses. Generally, this coverage won’t apply if you didn’t cause the accident. In those cases, you and/or your passengers could make a claim against the at-fault driver’s insurance for your injury bills.
In some states, guest passenger liability is required, while in others it’s an optional coverage.
Guest passenger liability might be included as part of your liability coverage or it could be sold separately, so it’s a good idea to ask your insurance agent how to get it.
Uninsured/Underinsured Motorist Coverage
Uninsured motorist coverage (UM) pays your medical expenses if a driver who doesn’t have insurance crashes into you. Underinsured motorist (UIM) coverage is similar and pays when the at-fault driver has some insurance but not enough. It’s generally smart to have UM and UIM coverage.
Medical Payments (MedPay)
MedPay coverage helps pay for you and your passenger’s medical bills, no matter who caused the accident. Depending on your state and insurance company, MedPay could pay for:
- Ambulance and emergency medical expenses
- Hospital bills
- Professional nursing services
- Health insurance deductibles and copays
- Prescriptions
While health insurance typically covers medical expenses, MedPay can be a valuable coverage because it also pays for copays and deductibles.
Personal Injury Protection (PIP)
PIP insurance is similar to MedPay but covers more. PIP coverage pays for you and your passenger’s medical expenses, regardless of who is at fault for the accident. This includes medical expenses like hospital and doctor bills, and PIP can also cover lost wages if you can’t work and replacement services for tasks you can’t do, such as house cleaning.
PIP is mandatory in some states, optional in some and not available in others.
If both PIP and MedPay are available in your state, PIP is typically the better option because it can cover more, such as lost wages.
Collision Insurance
If your motorcycle is damaged because of a collision with another object, such as a car, tree or building, <collision insurance pays for repairs. Keep in mind, collision insurance doesn’t cover damage you cause to someone else’s property. Your liability insurance is for damage you do to others.
If you need to file a claim for a problem covered by your collision insurance, you’ll usually have a deductible. A deductible is what you pay out of pocket for a claim. For example, if you have a $500 deductible and the repairs are $2,000, your insurance company would pay $1,500 ($2,000 – $500 = $1,500).
Comprehensive Insurance
Comprehensive insurance is good to have because it covers a wide range of problems, such as motorcycle theft, vandalism, falling objects (like a tree branch), fire, floods and hail.
Like collision insurance, if you need to file a claim for a problem covered by comprehensive insurance, you’ll have a deductible.
OEM Endorsement
An OEM endorsement ensures that original equipment manufacturer (OEM) parts are used to repair your motorcycle if there’s a repair covered by your policy. If an OEM part is not available, you’ll receive a payment based on the fair market value of the OEM part.
Depending on your insurance company, this coverage might be limited to motorcycles of a certain age—for example, motorcycles less than 10 years old.
Custom Parts and Equipment Coverage
If you like to customize your bike with aftermarket parts, this coverage is for you. Custom parts and equipment coverage helps pay to repair or replace aftermarket additions to your motorcycle if they are damaged or destroyed by a problem covered by the policy.
For example, if you added aftermarket handlebars to your bike and they were damaged in a collision, they would be covered under custom parts and equipment coverage.
Unlike collision and comprehensive insurance, custom parts and equipment coverage typically does not have a deductible. But you would need to pay the deductible for the collision and comprehensive portion of your claim. For example, if you have a collision that causes damage to your custom handlebars and the standard front forks, you would have to pay the deductible to repair or replace the forks, but not the handlebars.
Another thing to keep in mind: Custom parts and equipment coverage usually has a limit, meaning the insurance company will only pay a certain amount. For example, if your custom parts and equipment coverage has a $3,000 limit but you have a $4,000 customized seat, you would be responsible for the remaining $1,000.
Total Loss Coverage
Total loss coverage pays to replace your motorcycle with a newer model motorcycle if it’s stolen or totaled by a problem covered by the policy. Total loss coverage can help bridge the gap between the cost of a replacement motorcycle and the actual cash value (ACV) of your motorcycle, which includes depreciation.
For example, if you paid $15,000 for a new motorcycle and nine months later it’s totaled in a collision, but the ACV is $10,000, that’s what your insurance company would pay (minus the deductible) to replace your bike. With total loss coverage, you’ll typically get a claim payout that would replace your totaled bike with a new or similar model, depending on the policy.
This type of coverage is generally only available for motorcycles of a certain age. For example, your motorcycle may need to be no more than one or three model years old.
Roadside Assistance
No one wants to break down on the side of the road. This coverage won’t lessen the inconvenience of a breakdown but it can at least help financially. It pays for certain expenses if your motorcycle is disabled due to mechanical and electrical breakdown. Problems covered by roadside assistance insurance might include:
- Dead battery
- Empty gas tank
- Flat tire
- Lost key
- Low oil, fluids or water
Expenses might include:
- Towing
- Labor at the place of breakdown
- Delivery of fuel, oil or other fluids
Trip Interruption Coverage
Do you take long road trips on your motorcycle? This coverage pays for food, lodging and transportation if you’re away from home and can’t continue your trip because of a mechanical or electrical breakdown. Make sure to note the limits and rules on this coverage, such as:
- You’ll need to be a certain distance away from your primary residence, such as 100 miles.
- Reimbursement for meals will typically be capped and must be incurred between the time of breakdown and the arrival at your destination or primary residence. For example, one insurance policy we looked at covered $50 per day until you reach your destination, or until the end of the fourth day (whichever comes first).
- Reimbursement for lodging will typically be capped and must be incurred between the time of breakdown and the arrival at your destination or primary residence. For example, it might cap lodging reimbursement at $100 per day until you reach your destination or by the end of the fourth day (whichever comes first).
Exclusions to Motorcycle Insurance Coverage
An “exclusion” is any problem or damage that’s not covered by the policy. In other words, you won’t be able to file a claim for an exclusion. Here are some common motorcycle insurance exclusions:
- Damage and injuries resulting from racing, stunting, demolition contests, or riding on a temporary or permanent racetrack, or practice or preparation for these types of contests.
- Damage and injuries while using your motorcycle for a fee, such as delivering food or goods, or transporting passengers for pay.
- Damage and injuries while using your motorcycle within the course of employment.
- Damage and injuries resulting from a criminal act (except for traffic violations).
- Damage and injuries resulting from intentional self-injury.
- Damage and injuries while operating your motorcycle under the influence of alcohol and/or controlled substances, including cocaine, LSD, marijuana and all narcotic drugs.
Who Sells Motorcycle Insurance?
You can purchase motorcycle insurance from most major auto insurance companies as well as small and regional insurers. It’s a good idea to shop around to get the best quotes for motorcycle insurance.
If you already have insurance for your car or home, ask your insurance company if it offers a “bundling discount” for adding motorcycle insurance. A bundling discount is typically one of the best ways to save.
Here are some major carriers that offer motorcycle insurance:
- Allstate
- American Family Insurance
- Farmers Insurance
- Geico
- Liberty Mutual
- Nationwide
- Progressive
- State Farm
- USAA
Reducing Motorcycle Thefts
There were almost 41,000 motorcycles stolen in the United States last year, according to the latest report from the National Insurance Crime Bureau (NICB).
The majority of thefts occur in the warm-weather months of July, August and September. August had the most thefts in 2019 (4,642) and February had the least (1,972).
The good news is that motorcycle thefts have seen a 12% drop since 2016, which had almost 46,500 thefts. But even with a national decline in stolen bikes, it’s still a good idea to take preventative steps to keep your bike from being stolen. The NICB recommends that motorcycle owners:
- Park in well-lit areas, lock your ignition and remove your keys.
- Don’t store your title in the motorcycle’s storage compartment.
- Place unique markings on your motorcycle and document the markings with photos. If your bike is stolen, you can use these markings to identify your motorcycle.
If you’re buying or selling a motorcycle, the NICB recommends that you:
- Purchase a motorcycle from a reputable dealer. If you’re buying a motorcycle from a private party, avoid custom or “assembled vehicles.”
- Have a local dealership inspect the motorcycle before purchasing it.
- Order a vehicle history report if you purchase it from a third party.
- If you’re buying from a third party, complete the transaction at local law enforcement’s “safe area.”
- If you’re selling a bike, don’t turn over the title until the funds from a check or money order have cleared the bank.