How Insurance Works

Basics of a Motorcycle Insurance Policy.

Hello! I’m Dan Lyles with Lyles Insurance. and in this video we’re going to go over the basics of a motorcycle
insurance policy there are five major parts to motorcycle insurance and
they’re the same five components as what you would see in an auto insurance
policy they are liability coverage uninsured and underinsured motorist
coverage medical payments coverage comprehensive coverage and collision
coverage we’re going to go over each one liability coverage is required on all
policies and all states it applies when you’re at fault in an accident and
caused injuries and/or property damage to others so in other words this
coverage pays the other guy uninsured and underinsured motorist coverage
applies when another driver hits you and they are at fault and they either do not
have liability coverage like they’re supposed to be carrying or they don’t
have enough liability coverage to cover all of your injuries or property damage
that’s where either one of those kick in for medical coverage different states
use different terms some states call up medical payments
coverage some states call it medical benefits coverage and other states call
it personal injury protection just remember that they all mean about the
same thing they cover you and your passenger for injuries in an accident
regardless of who was at fault the last two parts of a motorcycle
insurance policy kind of go together comprehensive and collision coverage you
hear many people refer to having Bose as having full coverage I personally don’t
like that term because it’s misleading but when you hear somebody say they have
full coverage what they mean is they have both comprehensive and collision
coverage on their policy there are the actual parts that make up the physical
damage coverage on your motorcycle and the best way to learn it is to remember
it backwards collision coverage pays for damage when you’re in an accident
comprehensive covers everything else examples of comprehensive theft fire
vandalism weather damage hitting a deer things like that if you choose to take
out comprehensive and collision coverage on your motorcycle it’s important that
you understand how to duck tables work deductibles are your out-of-pocket
expense if you ever have to file a comprehensive or collision claim and the
way it works is it pays for damages up to the value of your motorcycle –
whatever deductible you took out so for example let’s say you have a claim
that’s a two thousand dollars worth of damage and you have a five hundred
dollar deductible your claim is going to pay out fifteen hundred the difference
and so deductibles have an inverse relationship with price meaning the
lower deductible the higher the premium and vice versa finally here’s a quick tip about helping
you find the best motorcycle insurance rate it’s going to be very
time-consuming if you try to get a quote one company at a time what I would
suggest is to go to an independent agent who has multiple motorcycle insurance
companies that way you can get several prices at once
and this is the most efficient way and probably your most likely way to find
the best rate I hope this video has taught you what you need to know about
the basics of motorcycle insurance thanks and have a great day

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