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Understanding Motorcycle Insurance Coverage for New Riders

If you’re a new owner of a motorcycle, you’re probably wondering, “Should I get motorcycle insurance?” The short answer is yes. Like the rest of your riding gear, motorcycle insurance coverage is crucial to your protection on the road.


Keep reading to understand more about motorcycle insurance for new riders so you can make your best decision.

motorcycle insurance coverage

Understanding Motorcycle Insurance Coverage

Usually, the insurance covers the cost of fixing any damaged property, medical bills, repairs, and replacement costs in an accident.


Thus, instead of paying for all these expenses out of pocket, the insurer comes in and helps you afford the necessary financial responsibilities. Whether your motorcycle is cheap or expensive or you rely on it for daily transportation, investing in a firm insurance policy is best.


You can check online for motorcycle insurance coverage from different insurers to determine the one that fits you best. Below are explanations of motorcycle insurance coverage and reasons you should it.

motorcycle insurance coverage

Comprehensive and Collision Coverage

We can start understanding motorcycle insurance coverage by discussing comprehensive and collision. This type of coverage primarily covers the damage caused on your own property.


Typically, motorcycle collision insurance covers the cost incurred to repair and replace your motorcycle during an accident. On the other hand, comprehensive coverage protects you if your bike is damaged in accidents other than collisions.


These include theft, storm, or fire. Therefore, comprehensive insurance will guarantee your bike’s safety even when parked in your home compound and should be factored into your motorcycle insurance cost.

motorcycle insurance coverage

Liability Coverage

Liability coverage helps a bike owner cover the damage caused to a third party or their property during a motorcycle accident. Thus, you can cover the cost of repair or others bills presented after the accident.


Most insurance policies allow one to take different levels of liability coverage, where higher limits usually result in a more expensive motorcycle insurance cost. However, the higher limits can also benefit people who commute to urban areas and newer motorcyclists.


This is because the chances of an accident are usually elevated in such situations. While more experienced riders prefer lower coverage amounts, they should always ensure they have liability insurance.

motorcycle insurance coverage

Personal Injury Protection and Medical Payments

In the event of an accident, motorcycle insurance coverage can provide personal injury protection and help you pay for your own medical expenses. Medical insurance will facilitate the payment of your hospital bills regardless of who caused the accident.


Additionally, optional personal injury protection cover helps one pay for any related expenses you can incur as you recover from injuries, such as lost wages and child care.


Breakdown Coverage

This includes motorcycle repair insurance, referred to as mechanical breakdown insurance. It involves an optional type of coverage that covers some repairs for your motorcycle.


Breakdown coverage is similar to an extended warranty covering engine repair, transmission, and other regular maintenance repairs.

motorcycle insurance coverage

Guest Passenger Coverage

Another kind of motorcycle insurance coverage is guest passenger coverage. Some passengers who ride on your motorcycle may lack significant insurance policies to cover them, thus putting them at risk in case of an accident.


The good news is that your insurance coverage can cater to their medical bills and injuries. This will eliminate financial distress for your passengers if an accident occurs.


Roadside Insurance and Towing

One of the most overwhelming and stressful moments you can have as a motorcyclist is being stranded on the roadside when an accident occurs. Roadside and towing insurance ensure your motorcycle is affordably towed to the nearest repair center.


Also, this type of motorcycle insurance coverage covers electrical or mechanical breakdowns, flat tires, and battery failure. Moreover, you can acquire free fuel, water, or oil delivery so that you get back to regular business as soon as possible.


Understanding motorcycle insurance coverage as a new bike owner can help you choose which coverage is right for you. Overall, getting coverage is best as it protects you and the passengers you carry in the event of an accident.


Also, motorcycle insurance coverage offers protection for property destroyed when an accident occurs. It is best to compare various insurers to find the one that suits you best. Keep reading for considerations when it comes to purchasing motorcycle insurance coverage.

motorcycle insurance coverage

Factors to Consider Before Purchasing Motorcycle Policy

Motorcycle Usage

Primarily, there are three main types of usage for motorbikes including private and business use, commuting to work and private use, and private use alone.


Private and business use: This occurs when you use your motorbike for leisure and personal activities and during work.


Commuting to work and private use: this entails when you plan to use your bike for going to work or leisure and personal activities.


Private use: this includes when you intend to use the bike for leisure and private life only.


When it comes to motorcycle insurance coverage, usually most insurers will ask you to indicate what you intend to use the bike for. On the other hand, others will require you to acknowledge them when you want to use the bike for other purposes other than what you declared earlier.


It is advisable to be clear with your insurer to avoid rejected or reduced claims.

motorcycle insurance coverage

Type of Motorcycle Insurance Fit for You

Like private car policies, motorcycle insurance coverage comes in three primary forms: comprehensive insurance, third-party fire and theft insurance, and third-party insurance.


Comprehensive motorcycle insurance: This offers more extensive coverage compared to the other two policies. This is because it covers damages to third parties, motorists, loss, or damage of the vehicle or other property.


With this policy, you should not worry about any financial burden if an accident occurs.


Third-party-only motorcycle insurance: This insures one against liability for bodily injury or property damage to third parties when an accident occurs. However, this policy does not cover the motorcycle or the driver.


Typically, most motorcycle insurance covers include a reduced coverage limit compared to car insurance plans.


Third-party fire and theft insurance: This offers coverage for damage or loss of your own motorcycle. However, the loss or damage must have resulted from theft, fire, or be in addition to third-party policy only.


Nevertheless, some insurers may allow you to claim for towing costs incurred following an accident. Note that theft claims will only be covered if the entire bike is stolen and not parts of it.


Additionally, some insurers may provide motorcycle insurance coverage with additional benefits like compensation for medical expenses, personal accidents, and loss of use. Drivers should purchase their own health or accident insurance unless it is clear that the insurance coverage will cater to them.


It would be best if you were careful when purchasing motorcycle insurance coverage. Please read and understand all the terms and conditions to ensure they fit your needs.

motorcycle insurance coverage

Claim Settlement Ratio

The primary reason for purchasing motorcycle insurance coverage is to get help when an accident occurs. Therefore, it would not make sense if you were paying for something that is not beneficial to you.


A claim settlement ratio defines how great an insurance company is in dealing with claims. Claim settlement ratio includes the ratio of the claims settled by a particular insurer against the total number of claims received during a financial year.


In addition to the Claim Settlement Ratio, ensure you are well informed about the bike insurance claim procedure in case of a mishap. This helps avoid confusion and wasting time.

motorcycle insurance coverage

Policy Exclusions

Basically, policy exclusions include the risks that a specific insurer is not willing to compensate for. Therefore, apart from knowing what bike insurance covers, familiarize yourself with what the policy does not cover.


Besides, you would not want your claim to get rejected because you claimed an event that was not included in the motorcycle insurance policy. To avoid confusion, avoid policies that have many hidden exclusions.


For better motorcycle insurance coverage policy purchasing decisions, you can also consider other factors such as the requirement of add-ons, no claim bonuses, policy terms, and insured declared value. Additionally, do not forget to check their customer service and support.


In Closing

Motorcycle insurance coverage is important and understanding your needs and how they play into your motorcycle insurance cost can be a deciding factor in what you choose to add to your policy. 


Don’t overlook motorcycle insurance for new riders or experienced ones. You never know what life will throw your way.

Christa Thompson

Christa Thompson is the Founder and Chief Editor of The Fairytale Traveler. She started traveling the world in 2003 when she attended a summer abroad study at the University of Cambridge in England. Since then, her wanderlust has been fierce. Her three passions in life are her son, traveling, and being creative. The Fairytale Traveler brand gives Christa the opportunity to do all of these things and to live intentionally every day. "It's never too late to believe in what you love and to pursue your dreams." -Christa Thompson

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