Choosing the right insurance coverage is similar to selecting the right car: you want it to meet your needs and lifestyle while staying within your budget.
An insurance policy is a legal contract that binds both the insured and the insurance company. It contains all of the specifics about the criteria or situations under which the insured person or policy nominee receives insurance benefits from the insurer.
It is a technique for protecting yourself and your loved ones against a financial disaster. You purchase an insurance policy for the same, and the insurance company assumes the risk and provides insurance coverage at a set rate.
In the event of an unforeseen event, the insured or nominee may claim with the insurer. The insurer examines the claim application and settles the claim based on the claim evaluation criteria.
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What is Car/Auto Insurance?
A car insurance policy will cover damages to your vehicle caused by accidents, theft, or any other circumstance that can cause genuine harm to your vehicle.
You need car insurance for the following reasons:
Financial Protection: If an accident occurs and you are found to be at fault, you may be required to cover the victim’s losses. These expenses can be covered by your insurance coverage, allowing you to keep your money.
Protects Auto Lenders: If you take out a loan for your automobile, your lender may request your car insurance policies to ensure you have collision and comprehensive coverage. This safeguard ensures that the value of their collateral is not diminished in the event of an incident.
Protects your passengers: In the event of an accident, your insurance coverage may cover the expenses of the injured passengers.
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What is Motorcycle Insurance?
Motorcycle insurance is a standalone policy that provides coverage for a wide range of motorcycles and related vehicles, including trikes, mopeds, scooters, dirt bikes, all-terrain vehicles, segway personal transporters, golf carts, and snowmobiles.
A motorcycle is commonly defined as a two-wheel land motor vehicle with wheels in tandem that is primarily intended for use on public highways, or a three-wheel land motor vehicle that is mostly intended for use on public roads.
Motorcycles can be added to a personal auto policy (PAP), however, coverage gaps may occur. Several insurers have created motorbike insurance that lessens or eliminates these gaps. Some insurers also offer off-road bike plans, such as dirt bikes.
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Difference between Car Insurance and Motorcycle Insurance
Insurance is focused on risk and cost. Here are the 5 key differences between car and motorcycle insurance:
Cost: A motorcycle is substantially less expensive than a car, however, insuring a motorcycle is usually more expensive. This is because motorcyclists are more likely to be involved in an accident, and thus more likely to file a claim. A motorbike rider is 5 times more likely to be wounded and 29 times more likely to die in a traffic collision than a car driver. The good news is that if you have an inexpensive motorcycle and a solid riding record and are not insuring a sports bike, the cost of coverage decreases.
Personal Injury Protection: Motorcycles do not provide physical protection to riders in high-impact collisions, and riders can easily be ejected from their bike during an accident. The rider has a far higher probability of being critically injured in that type of collision, especially when compared to someone inside a vehicle with airbags. This is where liability and medical insurance come in. Riders should incorporate this coverage into their insurance to be prepared for the worst. Property damage and collision coverage will, of course, safeguard your bike.
Passenger Coverage: If you have more than basic liability coverage, your auto insurance will normally cover passengers in an accident. Motorcycle insurance is a little different because most bikes are only used by one individual. Guest passenger liability insurance is an option for covering injuries to passengers, however, it usually only applies if you are not at fault. Speak with your broker about keeping your passengers protected.
Lay-Up Protection: Motorcycles, unlike vehicles, are frequently seasonal vehicles, we understand that there is no danger of a motorbike accident during the winter. Many insurance companies provide lay-up insurance, which protects you against theft, fire, and other risks while your vehicle is being stored for the winter. This coverage lowers your annual insurance costs, but you would not be insured if you rode your bike during that time.
Different Coverage Add-Ons: Motorcycle insurance can be tailored with a variety of unique add-on coverage options. Along with basic add-ons like roadside assistance, bikers can also get transport trailer coverage and coverage for custom accessories, parts, and equipment like chrome and saddlebags.
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Originally posted on June 22, 2022 @ 9:01 am
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