It is always better to buy insurance for the latest motorcycle that you take so much pride in. If you plan to buy a new motorcycle and ride it all over with peace of mind, then you must consider motorcycle insurance. However, there are several things to consider while buying motorcycle insurance, from buying an affordable policy with good coverage and ways to avoid the pitfalls of a policy. Yes, there are certain pitfalls that you should be aware of while buying a motorcycle insurance policy first. Here is a guide to the considered factors while getting quotes for a policy on motorcycle insurance.
- Similar to auto insurance policies, the older and more experienced you are, the cheaper the insurance rates be. If you are a new motorcycle rider, then you are most likely to be quoted higher, but your premiums should get less expensive with the gaining experience in riding along with a clean riding record.
- The insurance quotes will depend on the type and displacement of the bike. The insurance cost will be higher for fancier, more expensive motorcycles with higher displacements as compared to the older and basic models. Of course, here old means older models and not vintage or collector models, for which the insurance premium rates are much higher.
- The place or the city of your residence is also considered by an insurance company. If you happen to live in a high crime or accident prone area or city, always expect to get heftier premium rates than someone living in much more safer and peaceful location.
- Most important is of course your driving record. Any accidents in your record be it riding a motorcycle or driving a car, will make to shell out more when buying motorcycle insurance. It is crucial to know some of the very common pitfalls of motorcycle insurance. Here are some points to keep in mind.
Cheap Motorcycle Insurance
While affordable policies are much desirable, it is good not to buy the cheapest with the bare minimum coverage. Minimal bike damage, property damage and bodily injury coverage will not help on the event of an accident, especially if you are at fault. Theft and parts coverage could also be hardly there in the case of very basic motorcycle insurance. With such basic motorcycle insurance while just a bit will be provided by the insurance, you will have to bear the rest of the amount yourself.
The very minimal coverage motor insurance is therefore not recommended. If you buy a motorcycle insurance policy, then it is better to have a proper one that will actually come in help with comprehensive coverage at the time of need. Also it is always better to buy adequate insurance depending on the value of your machine. The fancier the bike, the more comprehensive policy you should buy.
Split Limit Liability
Cheaper motorcycle insurance policies similar to cheap car insurance come with the split limit liability system. This system separates the insurance into three segments of motorcycle damage, property damage and bodily injury and offers only fixed claim amounts for each of these segments. While this sounds fine, the catch is that in real life, the mentioned amount for each section is actually impossible to match with what you actually have to pay. The insurance which has split limit liability will pay only up to the fixed amounts for damage, bodily injury per person and property damage in each of the accidents, while the rest of the amounts will invariably come out of your pockets. Thus, compared against the Split limit liability insurance, a Single limit liability motorcycle insurance is recommended that combines all the coverage into one figure, so that there is no confusion at the end of the day.
Monthly Premium Payments
If you pay your motorcycle insurance premiums in easy monthly installments it might seem to manage your finances better. However, monthly payments are always more expensive than annual premium payments. Though the actual premium gets divided into 12 months installments, insurance companies add small amount of interests along with each installment. Thus, the added monthly premium payments will invariably amount much higher as compared against annual or half yearly payments. Thus, it is recommended to pay your motorcycle insurance premiums annually to save more money in the long run.
Also, it is good to remember that if you have a custom-made or a high-end motorcycle, then your insurance will be more complicated than that of the regular bikes, and you need to have a deeper understanding of your policy.