Types of Motorcycle Insurance Coverage

Regardless of whichever state you’re residing in, motorcycle insurance is something crucial to consider. Whether it is to stay financially secure against accidents, or to maintain legal compliance.  

If you’re on the verge of getting motorcycle insurance soon, it’s necessary to learn about the different types of motorcycle insurance available.  

Depending on the state that you’re residing in, there are a few types of motorcycle insurance policies that are mandatory. On the other hand, there are many types of optional motorcycle insurance coverage that are very essential such as collision insurance, comprehensive insurance, gap insurance and more.  

So, here’s the main question, what are the types of motorcycle insurance coverage that you need? This article explores 14 essential motorcycle insurance coverage options to help you learn, understand, and make informed decisions.

14 Types of Motorcycle Insurance Coverage 

If you have searched for motorcycle insurance coverage online, you may have stumbled upon different types of motorcycle insurance coverage. With so many options available, it can get quite confusing, especially to determine the types of motorcycle insurance that you actually need.

Without a clear understanding of the different types of motorcycle insurance and what they cover, it’s easy to either purchase unnecessary policies or miss out on crucial protection. So, to make an informed decision, it is essential to familiarize yourself with available coverage options, and their benefits.

Here are 14 types of motorcycle insurance coverage for you to consider based on availability, state-mandated requirements, and most importantly the right coverage options to keep you financially secure and ensure legal compliance.  

If you’re looking for a reliable and affordable insurance agency that offers cheap motorcycle insurance, consider checking our motorcycle coverage options.  

Liability Insurance (BI/PD)

Liability insurance is the most essential type of motorcycle insurance especially because it’s legally mandatory in nearly every state in the US, and it covers financial compensation in which you are legally liable. 

The Liability insurance has two components which include the bodily injury, and property damage liability.  

• Bodily injury liability component covers the medical bills of the other driver, their passengers, and any other third party injured, harmed or killed by the accident.  
• Property damage liability covers the other driver’s vehicle, and property damage expenses such as buildings, fences, mailboxes, and any other tangible asset. If you’re responsible for damaging anyone else’s property, then that’s also covered by the property damage liability insurance. 

In contrast, the liability insurance will cover bodily injuries and property damage expenses for an accident in which you’re at-fault. It only covers the other driver, and any third party affected or harmed by the accident. It does not cover your medical bills, or vehicle damage.

Additionally, if someone else sues you for an accident that you’re responsible for, then the liability insurance also covers the legal defense costs and any court-ordered fines or settlements, up to the policy limits.  

Typically, even in optional states such as Florida, Montana and New Hampshire where motorcycle insurance is not legally required, you’re still required to legally compensate anyone else harmed by an accident in which you’re at-fault.  

In case, if you don’t have liability coverage, or any motorcycle insurance then you’re at substantial risk of bearing a hefty financial compensation out of your pocket. So, that’s why it’s highly recommended to ensure having liability insurance in these three optional states as well to avoid the risk of financial burden. 

Guest Passenger Liability Insurance

When it comes to motorcycle insurance, getting guest passenger liability insurance is exceptionally important. This is an optional add-on motorcycle insurance coverage that you can purchase with your liability insurance. Some insurers include it with the standard liability coverage, if it isn’t then you need to separate purchase it as an add-on policy.

The guest passenger liability insurance will cover the medical bills, and treatment costs of your passenger for a motorcycle accident in which you are at-fault. Although this is an optional policy in every US state except Texas, it is a very essential coverage to consider.

Remember when you take someone on a ride on your bike, ensuring their safety is your ethical responsibility. So, to ensure that you can financially compensate their medical expenses for an accident that you’re responsible for, it is crucial to have guest passenger liability insurance.  

While shopping for insurance, it’s common for motorcyclists to wonder does motorcycle insurance cover passengers? Well yes, it does, and the guest passenger liability insurance is a great option along with other types of insurance such as personal injury protection (PIP) insurance, medpay (medical payments) insurance, and the uninsured/underinsured motorist coverage.  

Personal Injury Protection (PIP) Insurance

Personal injury protection insurance, commonly known as PIP insurance is a highly necessary motorcycle insurance policy as it covers the medical bills, caregiving services, childcare costs, and funeral expenses of you and your passengers regardless of whoever is at-fault for the accident.  

PIP insurance is typically a no-fault insurance policy and that’s why it is mandatory in all 12-no fault states which includes Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.  

As PIP insurance is essential, it is available as an optional policy in states such as Arkansas, South Dakota, Texas, Virginia, Washington and Washington D.C.

The biggest downside of PIP insurance is, unfortunately it isn’t available in many states in the US, but there are other alternative motorcycle insurance policies that provide medical coverage for motorists. So, if you’re living in any of the optional states where PIP is available, it is highly recommended that you consider acquiring it as it comes with a multitude of financial coverage for you and your passengers unlike other medical insurance coverage for motorcycles.

MedPay (Medical Payments) Insurance

When it comes to ensuring that you and your passenger are financially protected in the event of an accident regardless of whoever is at-fault, the Medical Payments insurance, or MedPay in short provides a multitude of essential health coverages.  

It is typically an add-on optional coverage in most states throughout the US, but it is a mandatory motorcycle insurance policy in 3 states which includes New Hampshire, Pennsylvania, and Maine.

MedPay covers essential medical expenses such as:

• Doctor visits
• Hospital stays
• Emergency room visits
• Surgeries and X-rays
• Health insurance deductibles and co-pays
• Prostheses or other medical mobility devices
• Ambulance transport
• Ongoing medical services
• Dental procedures
• Funeral expenses

Unfortunately, MedPay isn’t available in Minnesota, New York, North Dakota and Oregon. But if you’re located in any state where MedPay is available, it is highly recommended that you consider adding it to your policy as it’s crucial medical coverage for you, and your passenger.  

MedPay insurance is also considered the best substitute for PIP insurance. Similarly, in any state where MedPay insurance isn’t available you can consider PIP insurance, such as New York. If both of these policies are available in your state, then it would be wise to get both of these policies for more medical coverage.

Motorcycle Collision Insurance 

Motorcycle collision insurance is among the most essential optional insurance coverage to ensure that your motorcycle is covered when it comes to accidents involving a crash regardless of whoever is at-fault.  

According to NHTSA, motorcycles are 22 times more likely to end up in a crash than any other vehicle. Even if you’re riding safely, but for someone else’s negligence you may end up in a brutal crash. 

There are times when an animal, commonly a deer, might randomly appear on the road, and you might accidentally crash into it, or it avoid hitting the deer you might collide with another vehicle, or hit a tree. Aside from that, accidents can happen from your end too, when you might lose control and even crash into someone else’s parked vehicle.  

Or there can be crashes due to hit and run incidents. Regardless of accident or how it happened, as long as your motorcycle needs coverage due to a crash, the motorcycle collision insurance will cover its repair and maintenance expenses.  

In case if your motorcycle is totally wrecked and beyond repair, then your insurer will pay you the fair market value of the bike minus deductibles.  

Motorcycle Comprehensive Insurance

The motorcycle comprehensive insurance is a special type of insurance that’s specifically designed to cover your motorcycle’s repair and replacement costs from accidents that are beyond your control.

These accidents typically include damage to your motorcycle due to theft, vandalism, fire hazard, and weather calamities such as storms, earthquakes, floods etc.

Even if your motorcycle is safely parked in the garage, it can get damaged if there’s a fire outbreak, or due to a hurricane or any other natural disaster. When it comes to such incidents, you can never truly guarantee that your motorcycle won’t get damaged, which can lead to a great deal of expensive vehicle damage.  

On top of that, without comprehensive insurance there is no way to financially recover if your motorcycle gets stolen, or if it gets vandalized on the streets. So, to ensure that you are financially protected against such unprecedented incidents that are beyond your control, it is crucial to consider having comprehensive insurance.

Read More: How Much Does Motorcycle Insurance Cost?  

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage is a type of motorcycle insurance policy that covers your bodily injuries, and property damages if the other driver is at-fault for the accident with inadequate liability insurance coverage or none at all. It also covers your passenger’s bodily injuries.

According to the IRC, as of 2022, 15.7% of drivers in the US were underinsured. And, based on the report published by the Insurance Information Institute it was found that 14% of all drivers in the US were uninsured.  

There are many drivers in the US who only acquire the minimum liability coverage. In many cases the medical bills, or the vehicle repair expenses can exceed the minimum amount. Then, the other driver has to compensate you out of their own pocket, if they can’t afford that then you will either have to cover it from your insurance policy or cover it from your own pocket.  

The other driver can also have inadequate insurance for covering another liability. Or, if they aren’t insured in the first place, then their liability becomes your financial burden. To specifically prevent that, it is best to ensure having the uninsured/underinsured motorist coverage.

Uninsured/underinsured motorist coverage is mandatory in 21 states in the US which includes Connecticut, District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Jersey, New Hampshire, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, Vermont, West Virginia, and Wisconsin. 

Apart from these 21 states, the uninsured/underinsured motorist coverage is optional in the other 29 states.  

Gap Insurance 

Guaranteed Asset Protection Insurance, commonly known as gap insurance, is an optional motorcycle insurance policy that applies when your motorcycle is either stolen or is declared a total loss.

It covers the actual cash value (ACV) of your motorcycle, and the amount you still owe on your loan or lease. The interesting part is gap insurance also protects your motorcycle from the effects of depreciation.

For example, if you finance $40,000 for a motorcycle, and after a few years it’s now worth $30,000 after depreciation. Let’s say your bike got totaled or stolen and now you owe $35,000 on your loan.  

So, with the gap insurance you will get a financial compensation of $35,000, which also adds the gap of $5,000 compared to the motorcycle’s current value. Without the gap insurance, you would have to pay the additional $5,000 from your own pocket.  

By having the gap insurance, you can easily pay off your loan even if your bike is beyond repair, or if it’s stolen and beyond your reach. Even though gap insurance is optional in every state, it is crucial to acquire it if you have purchased your motorcycle on loan.  

Coverage for Custom Motorcycle Parts (CPE) Insurance

Custom Motorcycle Parts Insurance (CPE), or Motorcycle Accessory Coverage is a special optional coverage for motorcycle enthusiasts.  If you customize your motorcycle, let’s say you upgrade its suspension, chassis, and the wheels with custom rims, along with other changes to enhance its appearance and performance.  

Depending on the new parts that you have included the motorcycle’s actual value would change. If the modifications are a massive upgrade, then it can lead to increased maintenance and repair costs after an accident.  

To get the Custom Motorcycle Parts insurance, you will need to talk to an insurance agent and have them inspect your motorcycle. In case you don’t mention the customizations to your insurer, you will be covered based on the bike’s standard value provided by the manufacturer.

Also, keep in mind that, as you’re getting a personalized motorcycle insurance policy for the custom parts, you will also have to pay a higher rate depending on the changes that you’ve made.  

Original Parts Replacement Coverage 

If you prefer ensuring that after an accident, if any part needs to be replaced it should be the original one made by the manufacturer, then you should get the original parts replacement insurance coverage.  

If your motorcycle is being repaired, or even during routine maintenance if the original part is replaced, there can be alterations in its overall performance. But here’s a catch, there are times when the original parts can be difficult to acquire and might not be readily available.  

Or it needs to be shipped from another state or country, in that case it can lead to additional costs. Without the original parts replacement coverage, you would have to bear this additional expense out of your own pocket, which could be financially straining.  

So, to ensure that you get the original parts replacement costs covered by your motorcycle insurance policy, you should consider purchasing it.  

Towing and Labor Coverage

In case you get into an accident and your motorcycle gets damaged, or if it stops working in the middle of the road, you will require emergency assistance. Either you will have to get your motorcycle towed to a repair shop, or you will need a mechanic to provide on-spot maintenance like jump starting battery or changing a flat tire.  

Towing and labor coverage, also known as road assistance coverage pays for essential labor cost and covers towing charges. Your motorcycle is a machine, and it is susceptible to breakdowns.  

So, in case of such roadside emergencies it is essential to have towing and labor coverage. In that way, you wouldn’t have to worry about the financial costs, as your motorcycle insurance policy will have it covered.  

Rental Reimbursement Coverage

If you’re renting a motorcycle, then it is crucial for you to consider adding rental reimbursement coverage to your motorcycle insurance policy. This is essentially required because if the motorcycle gets totaled, or stolen, then you will have to compensate the entire cost of the motorcycle which isn’t covered by standard motorcycle insurance policies.  

On average it may cost you $100 per day to rent a motorcycle but if it gets critically damaged to a point beyond repair or if it’s stolen then you would have to compensate thousands of dollars.

In worse case scenarios, if you don’t have motorcycle insurance to cover the bike’s cost, or if you can’t afford to compensate the owner even from your own pocket then you may get sued and get legally penalized.

So, to avoid such financial burdens, and to keep yourself financially secure from such high costs, it is vital to ensure that rental imbursement coverage.  

Trip Interruption Coverage

If you’re going on a long trip, there can be an accident, or your motorcycle may have a breakdown. Let’s say you haven’t reached your destination yet, and based on the situation at hand, you have no option but to spend more on a nearby hotel, and for food and other basic expenses. Plus, you need to get your motorcycle fixed up or towed to a repair shop.

Given the scenario, your trip has been interrupted, right? So, to cover the loss, the trip interruption coverage includes financial compensation such as.

• Food
• Lodging  
• Long deposits
• Transportation  

But there’s a specific condition that applies to this coverage, you need to be at least 100 miles away from home to claim it. The trip interruption coverage is specifically designed to protect you in case your bike breaks down or if you get into an accident on a long-distance trip.  

Layup Period Coverage 

Layup period coverage is an alternative insurance policy to keep your motorcycle financially protected during unfavorable times like harsh winters. The layup coverage will keep all your motorcycle insurance coverage temporarily suspended except the comprehensive insurance coverage.

The biggest advantage of getting a layup insurance period is, while you keep your bike stored during winter, or any other unfavorable time, it will keep your motorcycle covered from theft, vandalism, natural disasters and anything covered by the comprehensive insurance coverage. So, in this way, you get to pay a reduced premium temporarily, and this can also help you avoid policy lapses.

However, if you ride the motorcycle and get into an accident the layup insurance won’t cover you. It only applies if the motorcycle is stored and is somehow damaged.  

Also Read: 1. Can I Cancel My Motorcycle Insurance in the Winter?

                 2. Does Motorcycle Insurance Cover Medical Bills?

What Type of Motorcycle Insurance Should You Consider?

When it comes to choosing motorcycle insurance, the types of motorcycle that are suitable will depend on the motorcycle that you ride, current situation, and specific requirements.

But in general, you should always consider the state laws first. Typically, liability insurance is mandatory in nearly every state in the US. There are other policies such as personal injury protection insurance which is mandatory in all 12-no fault states, and a few states require MedPay insurance.

After considering that you comply with the local state insurance requirements, it is important to evaluate which optional coverages do you need. If you're looking for recommendations, it’s always best to go for full coverage which includes a common combination of the mandatory policies in your state along with collision, comprehensive and uninsured/underinsured motorist coverage.

Bottomline

If you’re considering getting motorcycle insurance for the first time, or if you are on the verge of renewing your existing policy, it is essential to know how extensive your options are.

There are different types of motorcycle insurance coverage at your disposal, to keep yourself, your passenger and your bike financially secure. While there are mandated state requirements, there are various optional coverages that you can opt for.

To determine the right motorcycle insurance coverage, it is crucial to stay well informed of the different types of motorcycle insurance coverage. So far, 14 different types of motorcycle insurance coverages have been discussed in detail to help you understand what these policies cover and how they work.

Ultimately, when you discuss your motorcycle insurance requirements with an insurance agent, you will be able to relate and understand their suggestions better. And you can also negotiate a better deal or ask for coverage options that’s more suitable for you.

Regardless, if you need help to know more about motorcycle insurance coverage, or if you’re interested in acquiring one, you can use this option to find an insurance agent by providing your zip code. Or you can also contact us and get a free quote today.  

FAQ 

What type of insurance is best for motorcycles? 

Apart from liability insurance, and the other mandatory insurance policies, the best types of motorcycle insurance include guest passenger liability insurance, collision, insurance, comprehensive insurance, and uninsured/underinsured motorist insurance. If you’re financing the motorcycle on loan, then considering the gap insurance is a great option. Apart from that, if you go on long trips you may want to consider towing and labor coverage, along with trip interruption coverage.  

What does full coverage insurance cover on a motorcycle? 

Full coverage insurance covers the state mandatory insurance coverage such as liability insurance among a few others combined with collision, comprehensive, and uninsured/underinsured motorist coverage. The amount of coverage that you need to get will typically depend on your riding records, insurance history, age, location, and other factors.  

Should I get comprehensive insurance on my motorcycle? 

Well to keep your motorcycle covered against situations that are beyond your control such as theft, vandalism, fire outbreak, and natural disasters, it is always recommended to have comprehensive insurance on your motorcycle. As it’s an option policy, it’s ultimately your discretion. But if you can afford it, and if it fits within your budget then you should definitely consider comprehensive insurance on your motorcycle.