Collision

When insuring any vehicle, the first thing that normally comes to mind is an accident. You’ve been in a wreck and your bike needs to be repaired, or if it is a total loss, replaced. Coverage protecting you in the event of an accident with another vehicle is known as collision, and protects your financial investment in your motorcycle, or your lender’s, if it is financed. If you’re not at fault, then you can file a claim against the other driver’s insurance, but if it turns out you are, then you’ll be using your own policy to pay for your repair costs.

This coverage under your motorcycle policy will usually have a deductible, although some policies do offer a feature where that deductible, or the amount you have to pay out of pocket in the event of a claim, goes down over time until it eventually disappears altogether. Collision deductibles usually range from $250 to $1000 or more. Having a lower deductible will result in a higher premium, but it means after a wreck, you’ll have less money out of your pocket. Some policies also offer a total-loss deductible waiver, meaning that you won’t pay your deductible at all if the motorcycle is totaled.

It is important to take options like this into account when deciding on what coverage to buy, and having an independent insurance agent to talk to during the process can help you choose the option that’s best for you.

Comprehensive

What about if you have some other type of loss, such as fire, flooding, hitting a deer, or even hail damage? How about if your motorcycle is stolen? This is where comprehensive coverage kicks in.

Comprehensive coverage, sometimes referred to as “other than collision”, is designed to protect you from the many other things that can happen to your motorcycle. If you have a loan, this will also be required by the lender until the bike is paid off. You will often hear the comprehensive grouped with collision as “Comprehensive and Collision” or just “Comp and Collision”. This term often goes by another name, “full coverage”. Before we get to full coverage though, there is one more major risk to discuss.

Liability

This is the only coverage that is mandated by law. To legally drive any vehicle on public roads, you must carry a minimum of liability coverage. These minimums differ between states. In South Carolina, the minimums are 25/50/25.

• $25,000 in Personal Injury Coverage per person

• $50,000 total personal injury coverage per accident

• $25,000 in property damage coverage

There is more to liability insurance than just the law though. These numbers are just the minimum permitted by law. If someone is hurt, or even worse, killed in an accident, and you are found to be at fault, you are at risk of a financially debilitating lawsuit.

Having higher than the minimum limits of liability is a great way to protect yourself if you do find yourself facing a lawsuit. Most insurance companies offer auto policies with liability up to half a million dollars. We work with our clients to assess your needs and get you coverage that does more than just check a box, but actually protects your and your family’s financial wellbeing.

What about Full Coverage?

We often hear people refer to “full coverage” when they’re talking about their car or motorcycle insurance. The problem with that term is that it’s not really an insurance industry term. We ask our clients, “what do you mean, when you say full coverage?”

One of the most common things people refer to is having comprehensive and collision in addition to liability coverage on their auto policy. However, there are many other coverages you can add to your auto policy that cover things that comprehensive and collision do not, and the level of liability coverage you choose has nothing to do with “full coverage”. For these reasons, we don’t like using the term full coverage, and prefer to talk about the specifics of a policy with our clients one-on-one.

Uninsured Motorist Coverage

South Carolina law requires that in addition to liability insurance, you carry uninsured motorist coverage. The minimum requirements for uninsured motorist are also 25/50/25, although you can purchase more. You can only buy uninsured coverage equal to the amount of liability you buy. Over 10% of drivers in South Carolina are totally uninsured, which means you could definitely find yourself needing to use this valuable coverage.

One advantage of Uninsured Motorist coverage is that you can file your claim under that portion of your policy instead of your collision, which could cause your rates to go up after your policy renews.