Motorcycle Insurance Cost: Deductibles

What’s your financial risk tolerance? How much can you afford to pay out-of-pocket, in the event that you need to make a claim on your motorcycle insurance policy? Once you know this, you can choose deductibles that sync up with your financial situation.

All motorcycle insurance companies have different rates and offerings, but below is general information about how the deductibles that you choose can affect the cost of motorcycle insurance.

What Are Motorcycle Insurance Deductibles
As with other types of insurance, a deductible on your motorcycle policy is the amount that you agree to pay, before your insurance kicks in to cover the costs of a claim. The higher your deductible, the lower your insurance premiums. You choose the deductible amount when you purchase your insurance policy.

Types Of Coverage With Deductibles
With motorcycle insurance, you’ll typically choose deductibles for the different types of coverage.

Collision Insurance Coverage
Collision insurance covers damage to your motorcycle from a collision, if you’re at fault in the accident. You’ll pay the deductible amount, and then your insurance company will pay the rest (up to your policy’s limit).

Comprehensive Insurance Coverage
Comprehensive insurance covers non-collision incidents, such as theft, vandalism, or weather damage. Like collision coverage, you’ll pay the deductible amount, and then your insurance company will pay the rest (up to your policy’s limit).

Liability Insurance Coverage
Liability insurance covers injuries and property damage that you cause to others in an accident. Liability insurance includes bodily injury liability and property damage liability. Liability insurance typically doesn’t have a deductible. Your insurance company will pay the claim (up to your policy’s limit).

Common Motorcycle Insurance Deductible Amounts
The most common deductible amounts for motorcycle insurance are:

$250 deductible: This is generally the lowest insurance deductible, which results in the highest insurance premiums.

$500 deductible: This is a popular insurance deductible, because it offers a common ground between out-of-pocket expenses and monthly premium costs.

$1,000 or higher deductible: These higher insurance deductibles will yield lower premiums, but they’ll mean higher out-of-pocket expenses, and/or prevent you from even filing a claim.

Choose The Deductible That’s Right For You
Choosing the right insurance deductible is a tradeoff between lowering your insurance premiums and taking on more financial responsibility in the event of a claim. In the end, the decision should be based on your budget and your financial risk tolerance.

Vanishing Deductibles On Motorcycle Insurance
As an added incentive to stay with the same insurer year after year, some motorcycle insurance companies offer “vanishing deductibles.” For each year that you don’t file a claim, the insurance company reduces your deductible. Over time, your deductible could eventually become $0.

Check With Your Insurance Agent Or Company
Please note that the information provided above is for informational purposes only. For the most accurate, up-to-date, specific information, check with your insurance agent or insurance company.