Motorcycle insurance should protect you and your bike well. However, many myths surround this product.
Consequently, we’re providing you with the facts and debunking untruths so you can make an informed decision.
Myth #1 – The Color of Your Bike Affects Cost
Sorry, no. Color isn’t one of the factors insurance carriers look at when determining your premiums. However, the make, model, engine size, bike age, and your driving record are definite considerations.
Myth #2 – I’ll Pay More for Insurance as I Get Older
No, it’s usually the opposite. Older drivers often qualify for discounts. Those over 55 years of age may get a discount if they complete an accident prevention course. If you’re driving less during retirement, you could also pay less.
Myth #3 – My Credit Doesn’t Affect My Premiums
Not necessarily. In Rhode Island, insurers can legally use insurance scoring for rating and underwriting policies, whether you’re a new customer or you’re renewing your policy.
This factor is important to insurers since those with good credit are (statistically speaking) less likely to file claims. Consequently, those with good credit usually pay less for insurance.
Myth #4 – State Minimums Provide Ample Coverage
Absolutely not. Rhode Island insurance minimums are woefully inadequate. They only provide $25,000 for death or bodily injury to one person, $50,000 for death or bodily injury to two or more persons, and $25,000 for damage or destruction of property. That’s very little should you find yourself in the midst of a lawsuit.
Insurance professionals typically recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident. If you own substantial assets, your insurance agent may recommend additional liability coverage through a umbrella policy.
Myth #5 – I’m Covered if My Bike is Stolen or Damaged
Not necessarily. If your bike is stolen or vandalized, you’ll only receive compensation if you have comprehensive coverage. The same applies if your bike is damaged by flood, fire, wind, hail, or falling objects.
Financial protection for damage to your bike caused by a collision is provided by collision coverage. If you have customized your motorcycle, you may want to buy additional coverage so you can recoup the cost of your investment.
You may also want to buy uninsured/under-insured motorist coverage. Rhode Island statistics show about 17 percent of the motorists in Rhode Island are uninsured. Without this coverage, you have no financial protection if another driver lacks appropriate insurance.
Myth # 6 – My Friend’s Insurance Will Kick in if They Wreck My Bike
Not necessarily. It depends on what both policies offer. Your policy could serve as the primary insurance on a claim, and your friend’s as secondary coverage. In this case, you would pay for damages, regardless of who is driving. Always check with your insurance agent, before you loan you bike to another driver.
Myth # 7 – Separate Companies for Car & Bike Policies is Beneficial
No true. If you believe that you’re protecting your driving record by insuring each vehicle separately, you’re wrong. Insurers look at your overall driving record, so whatever happens on your bike affects your auto policy, and vice versa.
Additionally, you may qualify for a discount if you bundle both policies under one insurance carrier.
Whether you’re looking for a new policy or your policy is up for renewal, give us a call. We can align coverage with your needs and answer any further questions you might have.