What Does Comprehensive Motorcycle Insurance Cover?
Secure your motorcycle investment. This guide explains comprehensive coverage for non-collision damage, how it works, and its limitations.
While liability coverage addresses damage or injuries caused to others, comprehensive motorcycle insurance specifically focuses on protecting the insured motorcycle itself. This coverage is designed for unforeseen events that can damage a bike when it is not involved in a collision with another vehicle or object.
Defining Comprehensive Motorcycle Insurance
Comprehensive motorcycle insurance safeguards a motorcycle against damage from incidents outside a rider’s direct control. Its primary purpose is to cover losses to the insured motorcycle from non-collision events. This type of coverage helps protect the owner’s investment in their motorcycle, providing financial assistance for repairs or replacement. Lenders often require comprehensive coverage if a motorcycle is financed or leased, ensuring their collateral is protected.
Incidents and Damages Covered
Comprehensive motorcycle insurance covers a range of incidents that can damage a motorcycle, excluding collisions. This includes theft and vandalism. Fire damage also falls under comprehensive coverage. Natural disasters, such as hailstorms, hurricanes, floods, windstorms, and earthquakes, are covered.
Comprehensive insurance covers damage caused by falling objects like trees, branches, rocks, or other debris. Impact with animals, such as hitting a deer or other wildlife, is also covered. This coverage addresses physical damage to the motorcycle itself, not injuries to the rider or damage to other property.
How Deductibles and Payouts Work
When a claim is made under comprehensive motorcycle insurance, a deductible applies. This is the amount the policyholder pays out-of-pocket before the insurance company covers the remaining costs. For example, if a repair costs $2,000 and the deductible is $500, the policyholder pays $500, and the insurer pays $1,500.
Policyholders choose their deductible amount when purchasing coverage, with options ranging from $250 to $2,000. Selecting a higher deductible results in lower insurance premiums, while a lower deductible leads to higher premiums. If the damage cost is less than the chosen deductible, the policyholder pays the full repair cost without insurance involvement.
Most comprehensive motorcycle insurance policies settle claims based on the actual cash value (ACV) of the motorcycle. ACV is calculated as the replacement cost minus depreciation, accounting for its age and condition at the time of the loss. Some insurers may offer replacement cost coverage, which pays to replace the item with a new one without deducting for depreciation, though this usually comes with a higher premium.
Exclusions from Comprehensive Coverage
Damage from collisions with other vehicles or objects, such as hitting a car, a pole, or falling over, is not covered by comprehensive insurance; these events fall under collision coverage.
Comprehensive policies do not cover liability for damage to other people’s property or injuries to others. Medical expenses for the rider or passengers are also excluded. Damage due to normal wear and tear, mechanical breakdowns, or lack of maintenance are not covered. Damage incurred during illegal activities is excluded.