When insuring a motorcycle, one of the biggest decisions you’ll face is whether to go with liability-only coverage or full coverage. The right choice often depends on a few key factors, including how much your bike is worth, how often you ride and how much risk you’re willing to take on.
Here’s a breakdown of how each option works and when one might make more sense than the other.
What Liability-only Policies Cover
Liability insurance is often used to satisfy the minimum coverage required by most states for motorcycles. It typically includes two key coverage options:
- Bodily injury liability coverage may assist with third-party medical expenses and other losses if you’re responsible for injuring someone else in an accident.
- Property damage liability coverage can help cover other parties’ repair or replacement costs if you damage another person’s vehicle or property.
Liability coverage does not include your own injuries or damage to your motorcycle. If you’re involved in an at-fault accident, you would be responsible for the cost of repairing or replacing your bike out of pocket.
What Full Coverage Includes
Full coverage motorcycle insurance often refers to a combination of financial protections, including liability, collision and comprehensive coverage. Consider how the following may help enhance your financial security:
- Collision coverage may help pay to repair or replace your motorcycle after a crash, regardless of who is at fault.
- Comprehensive coverage can apply to damage caused by theft, vandalism, fire, weather or hitting an animal.
Some policies also offer optional add-ons like uninsured/underinsured motorist coverage, roadside assistance or coverage for custom parts.
How to Decide What’s Right for You
Liability-only coverage might be enough if your bike is older, fully paid off or not worth much on the resale market. It’s also a lower-cost option if you’re trying to keep your premium affordable.
Full coverage may make more sense if your motorcycle is new, financed, customized or difficult to replace. It can also offer financial security for frequent riders or those who park in high-risk areas and satisfy lender requirements.
Learn More
PAC Insurance Agency can help you weigh the pros and cons of liability-only and full coverage options for your motorcycle. Contact us at our office today to talk through your situation and find the coverage that fits you best.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.