Motorcycles are not the average vehicle, which is why they're challenging to insure. That's why it's important to provide biker clients with motorcycle insurance. It's more suitable for their riding needs, while still offering numerous pieces of coverage that any driver might need.
All the same, you can help your customers expand their coverage in unique ways — some of which are unique only to motorcyclists, rather than the standard driver. Two of these types of coverage are contents coverage and accessories coverage. Let's take a look at how they work.
Understanding Motorcycle Insurance
Motorcycles are motor vehicles. According to Texas law, their owners must have insurance coverage. However, motorcycles are not cars. Therefore, the average car insurance policy won't apply to them.
Much of the reason for the motorcycle insurance requirement has to do with the value and cost risk assumed by the biker. Motorcycles are two-wheeled vehicles that operate entirely differently than the average car. They also are open-air vehicles, which leaves the rider almost completely exposed to the hazards of the road.
Therefore, bikers have significantly higher accident risks than other riders. There are more than 380,000 motorcycles registered in Texas. Yet, these vehicles only make up about 1.6 percent of the more than 24 million vehicles registered statewide. All the same, motorcyclists made up 13 percent of statewide traffic fatalities in 2017. It's a lopsided statistic, and it shows why bikers need specialized insurance.
Motorcycle policies will likely contain such familiar coverage options as liability insurance and coverage against physical damage. However, motorcycle owners will need to tailor their policy limits to address the value they have invested in the bike. When it comes to insuring the vehicle against damage, bikers might need more than just the standard collision and comprehensive coverage.
Two of the most-necessary types of coverage for bikers might include accessories protection and possessions coverage.
Motorcycle owners can soup up their rides with numerous special accessories and enhancements. However, that custom paint job or new chrome accent set is going to cost money. The problem is that standard bike insurance usually won’t cover such enhancements.
Therefore, the rider might have to add additional coverage to the policy for these items. They can do so by getting accessories coverage. It can insure items like custom design work, GPS accessories, radio items or luggage racks. It can also cover riding gear, like helmets, chaps and saddle bags.
Some motorcycle policies automatically include a degree of coverage for accessories. However, the basic coverage limits are usually low, which means they won't insure the complete cost of all losses when severe damage occurs. Therefore, it's a good idea to recommend that clients invest in this coverage, which provide increased coverage limits. Remember, a deductible will also apply, so let your clients choose the one that's best for their out-of-pocket obligations.
When riding, bikers might carry a change of clothes, their phone and other necessities. There's a chance that these items might get stolen or severely damaged in a wreck. They are much more exposed than they might be when someone carries them in a car. Therefore, motorcycle policies offer possessions coverage to help replace them. Ensure that your client knows how much money the possessions policy will pay, at maximum, and where exclusions might exist.
There are various other perks that you can add to a biker's insurance to better insure the bike itself. These might include coverage for original replacement parts, or new bike replacement coverage. Be the agent who isn't afraid to tell your clients that they might benefit from additional policies.