In most cases, shopping for insurance can be a stressful process. Figuring out what's covered under your insurance policy and what's excluded can be complicated. As a motorcycle owner, you're looking for a policy that covers your asset in any situation. Here's a look at general misinformation regarding motorcycle insurance.
Many insurance companies are using insurance scoring to help calculate insurance premiums. Insurance scores are a method insurers rely on to predict the likelihood of someone filing an insurance claim in the future. However, many people make the mistake of assuming that an insurance score and credit score are the same things, and that is incorrect. Be aware that there are differences between the terms. For example, your income impacts your credit score but is not calculated when determining your insurance score. Your insurance score measures variables such as the number of credit accounts and any previous bankruptcies.
While credit checks impact your credit score, insurance score checks are considered soft inquiries that do not impact your credit score. Generally, insurance companies use your insurance score to assess how responsible you are. Analyzing your decision-making helps insurers finalize an appropriate insurance rate.
When finalizing their motorcycle insurance plan, many people opt to add medical payments coverage because they have health insurance, which is a common error. Don't assume that your medical treatment due to getting injured while riding your motorcycle will be covered through your health insurance. While medical payments coverage is often used as supplemental coverage towards health insurance, it can also step in as full coverage if you don't have health insurance.
Med pay also covers your medical treatment if motorcycle-based injuries are excluded from your health insurance policy. Med pay can fill in gaps concerning your deductibles and copays. Med Pay is also flexible enough to cover your passenger's medical treatment if they suffer an injury. It's recommended that you take some time to figure out your insurance needs and evaluate which types of extra coverage you should add to your policy.
Adding collision and comprehensive insurance is a big part of your motorcycle insurance quote. Collision insurance covers your repair costs if your motorcycle suffers damage through impact with another vehicle or object. Comprehensive insurance covers your motorcycle if it is stolen, vandalized, or damaged due to severe weather. Remember that collision and comprehensive insurance are optional coverages, though it's highly recommended that you add them to your policy.
Comprehensive and collision coverages are designed to ensure you are protected if an emergency arises. Liability insurance is also a major part of your policy. Liability insurance covers you if your motorcycle accidentally injures someone or damages property. Liability insurance helps cover the injured party's medical bills and any repair costs. Liability insurance also covers your legal fees if the impacted party opts to sue you.
Before finalizing your motorcycle insurance quote, your insurer will likely ask you to mention any previous violations you've had in the last few years. While you may feel that your driving history is irrelevant, insurers will take note of your tendencies while driving a car, believing that you operate your motorcycle the same way. You are considered a high-risk driver if you have multiple accidents on your driving record. High-risk drivers pay substantially higher premiums than drivers with clean driving records. If your premiums are high initially, you can lower them by taking a motorcycle safety course.
Related Article: Motorcycle Safety Tips to Follow This Summer