Motorcycle Insurance 101

Monday, May 26, 2014

Motorcycle insuranceIf you have a motorcycle, moped or any other self-propelled two-wheeled vehicle, you must register it with your appropriate local authority before you are allowed to take it on the road. Once you have done so, your next step is to purchase insurance for it. 

  • Motorcycle insurance is mandatory. As with larger vehicles, your policy is required to carry third-party liability and accident coverage. This ensures that no Canadian motorcyclist or motorist can have a catastrophic accident that is not covered. In case of an accident, your insurer will pay your medical bills and damage. It will also pay others if you accidentally injure them or damage their possessions while on your bike. Few motorcyclists settle for the mandatory coverage only, however, because there is a lot that it does not cover.
  • Collision or upset coverage can be added, which covers damage to your motorcycle if you overturn it and if you collide with objects like lamp posts, trees or potholes. This is almost essential if you frequently ride in the rain.

  • A comprehensive policy covers fire, theft, vandalism, falling objects, lightning and other perils, excluding collision and upset. This is the only way to be compensated when your motorcycle gets stolen or damaged off the road.

  • If you want both Collision coverage and comprehensive coverage, you should choose an all perils policy. These policies normally specify a list of perils for which your vehicle is covered. 

  • If you want coverage against fire but you do not think theft will ever be a problem, ask for a customised policy where you can specify the perils against which you want to be insured.
  • Many insurers allow you to add upgraded motorcycle components, attached side cars and other custom items.

  • Most insurers allow their clients to reduce their coverage and premiums during the winter when their motorcycles are in storage. This is a handy way to save money, but be absolutely sure that you do not take the vehicle out on the road. It will then be uninsured.

  • Many factors are used in combination to determine your premium. Experienced riders with good records usually pay less. So do those who use advanced locks and tracking systems to prevent theft. The weather, the condition of the roads, the crime rate, the make and model of your vehicle and the number of accidents in your area also contribute.

Your motorcycle might not be as expensive as your car, but it is much too valuable to lose without compensation.