You need motorcycle insurance. You've gotten two quotes and one is twice the price of the other. Should you just take the cheaper one? Not necessarily. In fact, with that big a price difference, chances are that you're comparing two completely different insurance products. You need to decide what coverage you'd like and then compare prices on products that are as similar as possible. Here are seven factors to nail down when you're comparing motorcycle insurance policies.
1. Rider Injury Coverage. If you are injured while riding your motorcycle, are medical expenses covered? Some policies do not cover your medical expenses. Many people have separate medical insurance through their employer, so they don't need it. Decide whether you want this included in your motorcycle insurance policy before you get quotes. If you do want it, find out what the coverage limit is and try to compare policies with similar limits.
2. Coverage for Your Bike. If your motorcycle is damaged or destroyed in an accident, will insurance repair or replace it? What if it's damaged but not in an accident - for example, theft or water damage? If your bike is not very expensive, you may choose to save money by skipping this kind of coverage.
3. Uninsured Motorist. Your insurance usually covers you for accidents that are your fault. If your bike is damaged and it's someone else's fault, the assumption is that they are responsible for the damages. But what if they don't have insurance? You can buy a policy that includes uninsured motorist coverage so that damage to your bike will be covered in this event.
4. Liability Insurance. Your state probably requires every driver to carry a minimum amount of liability insurance. This amount is often insufficient to pay medical expenses if you injure someone else. Whether you wish to buy additional coverage is up to you. If you get into an accident and cause more damage than your policy covers, the injured party could sue you for the difference. Also, find out whether any passengers on your bike are covered.
5. Deductible. If your motorcycle is damaged, either through your own fault or that of an uninsured driver, you will usually pay a deductible before the insurance kicks in. You can often save money on your premium by accepting a larger deductible.
6. Price. Okay, here it is - the part you've been waiting for - what's it going to cost? Once you define the first five factors, the insurance company will give you a price based on your driving record, your location, your motorcycle and other factors. Make sure you're clear on what period of time that price covers. Is it for a one year policy? Six months?
7. Payment Plan. How does the motorcycle insurance company expect you to pay the premium? Is it all due up front? Do you pay monthly? Many insurance companies give you a price as if you paid the entire premium up front. They offer a payment plan, but that includes interest on the unpaid portion. If you plan to pay monthly, make sure to take the interest into consideration as part of the price.
You may be considering different coverage options, and that's fine. Just get prices on the different policies from all the insurance companies that you're comparing. In some cases, you may not be able to compare policies that are exactly the same. Different motorcycle insurance companies offer different options. Just make sure you get them as close as possible and take the differences into consideration when looking at the prices.