Riding a motorcycle is more exhilarating than driving a car but it is also much more dangerous. All you can do is mitigate the increased risks by taking a safety course, using defensive driving tactics, and setting up a comprehensive insurance policy. With this guide to your motorcycle insurance policy, learn all you need to know about the level of coverage that is right for you.
Basic Types of Insurance for Motorcycles
To legally ride a motorcycle in Canada, you must at least carry third-party liability insurance plus have the appropriate licenses. Insurance providers offer more than just liability coverage, however, allowing you to customize your insurance plan to best suit your needs. Here’s a look at a few of the different coverage levels you can choose from.
If you are deemed fully or partially at fault for an accident, liability insurance will cover the other party’s expenses for both property damage and bodily injury. They may issue a payout for medical bills and lost wages. Plus, cover the cost of repairing or replacing vehicles or other property damaged during the incident.
To cover your own motorcycle repair or replacement costs, you will need to add collision coverage to your plan. Once you satisfy the deductible, the insurance company will pay to resolve the collision damage on your personal vehicle up to the vehicle value. This value is based on the base cost of the motorcycle without any upgrades you have made along the way.
If your motorcycle was damaged in a fire or by a falling tree branch, collision would not cover it. Instead, you need comprehensive coverage to have your insurance company handle repairs or pay for its replacement. Other incidents covered only by comprehensive include vandalism and theft.
For each type of insurance, you can set the policy limits and deductible amount, which will influence the monthly premium. If you select a higher deductible, your premium may go down and vice versa.
Uninsured/Underinsured Motorist Coverage
Although it is legally required, not everyone acquires insurance coverage before hitting the road. If the other party does not have insurance, then you have to look toward your own coverage for protection.
Unfortunately, it could fall short unless you have uninsured/underinsured motorist coverage. With this added to the plan, your own insurance company would cover your medical bills and more when the other party lacks adequate coverage or any at all.
Optional Equipment Coverage Can Preserve Your Upgrades
Comprehensive, collision, and uninsured/underinsured insurance plans only cover up to the book value of your motorcycle. If you have invested in expensive upgrades, an accident could leave you out of all that money.
Thankfully, you can invest in optional equipment coverage to increase the potential payout when an incident occurs. This level of coverage takes the price of all the upgrade parts into consideration when determining how much to pay for repairs and replacement.
Ways to Decrease Motorcycle Insurance Premiums
You can save money on your motorcycle insurance premiums with a few simple steps. First, select the highest deductible amount possible to reduce your monthly rates. Next, equip your motorcycle with an anti-theft device that deters thieves and makes it easier to recover the vehicle if it is stolen.
Taking a safe driving class for motorcyclists can also help, as can bundling your insurance with other policies, including home and auto. Finally, maintain a good driving record by riding defensively and staying safe on all your travels.
With this guide to your motorcycle insurance, you can decide what level of coverage is right for you. If you need any help in that process, simply reach out to our team at Wayfarer Insurance Group today.
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