Motorcycles: Insurance, Inflation, & Rates! How to Save 💰

Posted November 3, 2022

Inflation is at a 40-year high. We all see it, and we all feel it. One of the biggest concerns I have for my clients is when they try to switch to liability-only coverages on their motorcycle insurance policy to save a little money.

Here’s the problem: the rising costs of goods and services could hit you pretty hard if you’re at fault for damages to someone’s vehicle. What might have been a $20,000 repair ten years ago could now be $25,000 or higher.

Debts Could Last a Lifetime

A limited liability motorcycle policy usually covers $25,000 for property damage in Missouri. If you run into someone and you’re at fault, you could be personally liable for any remaining health or property expenses. You could be sued for hundreds of thousands of dollars if someone is seriously hurt in the collision.

In many scenarios like this, the motorcycle driver isn’t likely to have that kind of money set aside. This often results in a court deciding to garnish your wages and assets–possibly for the rest of your life 🙈

We don’t want that for you. While your health and safety are always going to be our first priority, we also care about our clients’ ability to financially recover from unexpected liabilities, which is why it’s so important to understand what’s in your policy and know what kind of coverage you’re paying for (or not paying for).

Know Your Motorcycle Policy Limits

If you’re in a collision, what is the ideal amount of coverage you would want your insurance provider to pay out? The most common limits are:

$25,0000 – $50,000
$50,000 – $100,000
$100,000 – $300,000
$250,000 – $500,000

On that note, do you know how much coverage you have right now?? Chat with an agent to talk about customizing your motorcycle coverage.

Add an Umbrella Policy ☂️

An umbrella policy helps protect you from excess damages not covered by your motorcycle policy. Your motorcycle policy needs to have at least $100,000 in coverage for an umbrella to “piggyback.” $100k sounds like a lot, but let’s say that you’re in a collision that accrues $150,000 in damages and it’s determined that you were at fault for the accident. If you don’t have an umbrella policy, that still leaves over $50,000 that you would be liable to pay.

After your motorcycle insurance pays for the first $100,000 in damages, an umbrella policy will kick in to help you cover the remaining $50,000 so you don’t have to pay out of pocket. Generally speaking, an umbrella policy will usually have a $1 million – $5 million limit.

An umbrella policy can also be a safety net for your properties or personal liabilities, including some lawsuits.

Increase Medical Coverage for Riders

If you’re out on your motorcycle or ATV and you crash it, not all policies will cover medical expenses. This is something that you can add to your policy, though, and we always go into detail with you to make sure you’re getting coverage to help you feel more confident when you’re out riding with your friends or kids.

On that note, you can also add coverage for any fun accessories you added to your bike. Make sure your agent knows when you invest in extra bells and whistles–I always hate to see those written off as a financial loss 👎

How to Lower Your Motorcycle Insurance Rates

As important as it is to make sure you have the right coverage, we also love to help people save a little money on their monthly bills! Here are my top suggestions to lower your rates.

⭐ Increase Your Deductibles

⭐ Bundle Your Motorcycle/ATV with Other Auto/Boat/Home/Renter Policies

⭐ Store Your Bike When You’re Not Using It

⭐ Take a Motorcycle Safety Course

⭐ When Inflation is High, Shop Around for Better Insurance Rates!!

From Bruce Porter: 5 Money Traps to Avoid During a Financial Crisis