What motorcycle insurance covers and why you need it
Motorcycle insurance works the same way car insurance does: you pay a premium each month or year, and the insurer covers costs if you're in an accident, your bike is stolen, or someone sues you for injuries or damage. Most states require you to carry at least liability coverage, which pays for injuries or property damage you cause to someone else. Without it, you can face fines, license suspension, or a lawsuit that comes directly out of your pocket.
Beyond the legal minimum, you can add other types of coverage depending on your bike, where you ride, and how much financial risk you're willing to take on yourself. A newer motorcycle financed through a loan almost always requires comprehensive and collision coverage as a condition of the loan. An older paid-off bike gives you more choice about what to add.
Insurance companies price motorcycle policies based on the bike's make and model, your age and riding history, where you park it, how many miles you ride per year, and whether you've taken a safety course. A 25-year-old with a clean record on a standard 500cc bike will pay far less than a 19-year-old on a sport bike with a speeding ticket.
Key Takeaways
- Liability coverage is required by law in most states and pays for injuries or damage you cause to someone else.
- Comprehensive and collision coverage protect your own bike but cost more, and are usually required if you financed the motorcycle.
- Your premium depends on the bike's model, your age, your driving record, and how much you ride each year.
- Uninsured motorist coverage protects you if someone without insurance hits you, which is common on motorcycles.
- You can lower your premium by taking a motorcycle safety course, bundling with other insurance, or raising your deductible.
The types of coverage and what each one pays for
Liability coverage is what the law requires. It has two parts: bodily injury liability (which pays medical bills and lost wages for someone you injure) and property damage liability (which pays to fix or replace their vehicle or property). States set minimum amounts you must carry — typically $15,000 to $25,000 per person for injury and $10,000 to $20,000 for property damage, though these vary. You can buy more than the minimum if you want extra protection against a lawsuit.
Comprehensive coverage pays to repair or replace your bike if it's stolen, damaged by weather, hit by an animal, or damaged in a way that doesn't involve a collision with another vehicle. It does not cover accidents you cause. You choose a deductible — usually $250, $500, or $1,000 — and you pay that amount out of pocket before the insurance pays the rest.
Collision coverage pays to repair or replace your bike if you crash it, hit another vehicle, or hit an object like a guardrail or tree. Like comprehensive, you choose the deductible. If your bike is totaled, the insurer pays its current market value minus your deductible.
Uninsured and underinsured motorist coverage protects you if someone without insurance or with too little insurance hits you. This is especially important for motorcyclists because hit-and-run accidents and uninsured drivers are common. It covers your medical bills and lost wages up to the limit you choose.
How to compare quotes from different insurers
Call or visit the websites of at least three insurers — State Farm, Progressive, Geico, and Allstate are the largest, but regional companies like Dairyland and Nationwide also write motorcycle policies. Have your bike's vehicle identification number (VIN) ready, along with your driver's license number and driving history. Each insurer will ask the same questions: your age, where you park the bike, how many miles you ride per year, and what coverage limits you want.
When you get quotes, make sure you're comparing the same coverage levels across all three. A quote with a $500 deductible and $100,000 in liability is not the same as one with a $1,000 deductible and $50,000 in liability. Write down the total annual premium for each combination so you can see the real difference.
Ask each insurer whether they offer discounts for bundling (adding motorcycle insurance to a home or auto policy), taking a motorcycle safety course, or having safety features on the bike like anti-lock brakes. These discounts can reduce your premium by 10 to 25 percent. Some insurers also offer lower rates if you agree to let them monitor your riding through a mobile app, though you don't have to use that option.
What happens if you're in an accident
If you're in an accident, call the police if anyone is injured or there's significant damage. Get the other driver's name, phone number, address, driver's license number, and insurance information. Take photos of the damage to both bikes, the accident scene, and any visible injuries. Get the names and phone numbers of any witnesses.
Call your insurance company within 24 to 48 hours and report the accident. Have your policy number ready and tell them exactly what happened. Do not admit fault or apologize for the accident — let the insurance company investigate. The insurer will assign an adjuster who will contact you, inspect the damage, and decide how much to pay.
If the other driver was at fault and has insurance, your insurer may pursue a claim against their policy to recover what they paid you (this is called subrogation). If you were at fault, your liability coverage pays for the other person's injuries and damage, and your collision coverage pays to fix your own bike (minus your deductible).
Lowering your premium without cutting coverage
The fastest way to lower your premium is to raise your deductible. Moving from a $250 deductible to a $500 or $1,000 deductible can cut your comprehensive and collision costs by 15 to 30 percent. This works only if you have cash set aside to pay the deductible if you need to file a claim.
Taking a motorcycle safety course through the Motorcycle Safety Foundation or a state-approved program usually qualifies you for a 5 to 15 percent discount. The course takes one or two days and teaches defensive riding techniques. Some insurers waive the course requirement if you have a clean riding record for three or more years.
Bundling your motorcycle policy with a home or auto policy can save 10 to 25 percent on both policies. Paying your premium annually instead of monthly also saves money because you avoid monthly payment fees. Some insurers offer small discounts for paying by automatic bank transfer instead of credit card.
Riding less also lowers your premium. If you ride your motorcycle only seasonally or for weekend trips rather than commuting daily, tell your insurer. They may offer a lower rate for lower annual mileage, or you can suspend coverage during winter months and restart it in spring.
Special situations: financed bikes, young riders, and high-performance motorcycles
If you financed your motorcycle through a bank or dealer, the lender requires you to carry comprehensive and collision coverage with a deductible no higher than $500 or $1,000 (the lender sets this). You cannot drop these coverages until the loan is paid off. The lender is listed as a loss payee on the policy, which means the insurance company sends the check to both you and the lender if your bike is damaged.
Riders under 25 pay significantly higher premiums because insurance data shows they have more accidents. A 19-year-old on a sport bike might pay $2,000 to $4,000 per year for basic coverage, while a 40-year-old on the same bike pays $600 to $1,200. Taking a safety course and maintaining a clean driving record helps, but age is the largest factor. Some insurers offer discounts for good grades if you're a student.
Sport bikes and high-performance motorcycles cost more to insure than standard or cruiser bikes because they're involved in more accidents and are more expensive to repair. A Harley-Davidson cruiser might cost $800 per year to insure, while a Kawasaki Ninja sport bike costs $1,500 or more for the same rider and coverage. Theft rates also matter — bikes that are frequently stolen cost more to insure.
Frequently Asked Questions
Do I need motorcycle insurance if I only ride on private property?
State laws require insurance only for riding on public roads. If you ride only on your own property or a closed track, you technically don't need insurance by law. However, if someone is injured on your property while riding your bike, you could still be sued, and your homeowner's insurance may not cover motorcycle accidents. Many riders carry at least liability coverage even for private riding.
What's the difference between stated value and actual cash value coverage?
Actual cash value pays what your bike is worth on the used market at the time of the loss, minus depreciation. Stated value lets you and the insurer agree on a value upfront, and that's what you get paid if the bike is totaled. Stated value is better if you have a classic or custom bike that's worth more to you than the market value, but it usually costs more.
Can I insure a motorcycle I don't own yet?
No, you cannot buy a policy on a bike you don't own. You can get quotes based on the make and model you're planning to buy, and you can ask the insurer to bind coverage (make it active) the day you take ownership. Most dealers and lenders require proof of insurance before you leave the lot, so arrange this before you buy.
What happens to my premium if I get a speeding ticket?
A speeding ticket typically raises your premium by 10 to 30 percent for three to five years, depending on the insurer and how fast you were going. A ticket for 10 miles over the limit costs less than one for 30 miles over. Some insurers offer forgiveness programs that waive one ticket in a certain period if you take a safety course.
Do I need separate insurance for a sidecar?
A sidecar is usually covered under your motorcycle policy at no extra cost, but tell your insurer when you add one because it changes the bike's value and how it's classified. Some insurers charge a small additional premium for a sidecar because it affects handling and increases the bike's value.