According to the National Highway Traffic Safety Administration, there are about 6 million crashes on American roads yearly! At this rate, don’t you think getting car and motorcycle insurance coverage makes sense? However, as a new car or motorcycle owner, insurance coverage may be confusing, and you may probably have a million car and motorcycle insurance questions. In this article, we get to answer ten common insurance questions. Keep reading to understand car and motorcycle insurance coverage better. Let’s start!
1. How Is Motorcycle Insurance Different From Car Insurance?
Typically, car insurance is similar to motorcycle insurance coverage. You can get them from the same insurer; they have identical insurance coverage policies designed to protect you financially in case of an accident. However, there are a few differences between the two insurance policies.
The auto insurance quote is the most common among car and motorcycle insurance questions. You’d want to know about their costs. Generally, car insurance is more expensive than motorcycle insurance coverage. One of the primary reasons for this difference is that cars are usable all year round in different weather settings. However, motorcycles aren’t drivable during heavy precipitation. So, vehicles are more likely to get involved in an accident. As a result, liability for motorcycles is more affordable than that of cars.
Did you know getting insurance coverage for your car is more accessible than a motorcycle? Typically, there are more options for motor vehicle insurance and less for motorcycles. Even so, although scarce, motorcycle insurance coverage is accessible in all US states. However, if you’re a biker and have difficulty finding perfect fit insurance coverage for your motorcycle, work with an independent broker to determine your available insurance options in your state. Compare quotes and choose your ideal plan.
2. What Are the Most Common Types of Car Insurance Coverage?
There are several different types of vehicle insurance coverage. Don’t worry, you don’t need all of them. However, you must review all car insurance quotes to determine what fits your budget and needs.
In most states, auto liability coverage is a must for all drivers. Typically, the law sets the minimum liability coverage that you must purchase. The cover comprises two components: Bodily injury liability and property liability.
Bodily injury coverage pays for claims to another person’s injury if you’re liable for the accident. The second component is the property damage liability, which pays for damages you may cause to another person’s property while at the wheel. A better choice is to go for a comprehensive cover. Unlike liability insurance, comprehensive covers damage to your car.
A common query that must top your car and motorcycle insurance questions list: What happens when hit by a driver without insurance coverage? You no longer have to worry about this, as uninsured and underinsured motorist coverage will pay your medical bills. In some states, the cover will also cater to your vehicle damages. If the driver is underinsured, the coverage comes to the rescue according to your state laws.
3. Should I Bundle My Insurance Coverage?
Can you bundle home and auto insurance coverage? According to the National Association of Insurance Commissioners, homeowners pay $1,272 yearly for their home’s coverage and $1,204 vehicle insurance premiums. For this reason, bundling your insurance coverage is a badass tip to save you a few bucks.
Bundling your insurance coverage will save you money while protecting your home and car. According to the Insurance Information Institute, it typically saves you between 5% -15%. So when shopping for the policy, it will be best to check on steeper discounts. Also, keep your eyes open for multi-policy or bundling discounts.
However, it would be best not to assume that the first discount you encounter is the best deal in the market. Always shop around to exhaust all your available coverage options. Don’t be too quick on settling on an insurer: research. Always remember that you must choose an insurer that saves you more money.
4. Can an Insurance Company Dispute a Claim?
You’re not alone if you’re wondering whether an insurance company can dispute a claim. The question floats among the everyday car and motorcycle insurance questions troubling people before filing for a claim. So, it’s best to know that your insurer has a right to dispute your claim before claiming compensation. If this happens, you must seek the services of an insurance claim dispute attorney for a better chance of winning your case.
An insurance dispute typically happens when the insurer and policyholder disagree on a settlement. Hypothetically, your insurer may intend to pay less than your claim, delay compensation without explanation, or deny payment altogether. There are various reasons why an insurance company may dispute your claim. For example, when an insurance company does poor investigations, the findings will be erroneous. The result is bad faith disputes.
Typically, all insurance policies have a limit on compensation in case of an accident. As a result, when your claim is beyond the stated limits, you will be stuck with excess. Usually, every state has a standard minimum liability coverage. However, you can decide to pay higher premiums for a higher limit.
5. Do I Need Insurance As Soon as I Purchase a Car or Motorcycle?
If you’re wondering whether you must purchase car insurance to buy your vehicle, the answer is a resounding yes! However, most car dealerships don’t necessarily require you to have an active insurance policy before purchasing your car. Buying insurance without information about the vehicle you intend to buy may be next to impossible. When applying for car insurance, your insurer will need vehicle-specific details such as the mileage and the VIN.
While it’s technically impossible to purchase a car without insurance, the law requires proof of it to drive the vehicle off the lot legally. So, if you don’t want to find yourself in court, it will be wise to ensure you possess insurance before heading out to the road. Also, the salesperson will probably require proof of insurance during the transaction at the dealership. Without it, you’re not legally allowed to possess the car.
You must have proof of insurance before riding your new motorcycle away from the dealership. However, grace periods may extend up to 72 hours in some states. Even so, you need an existing vehicle coverage to qualify for the extension. Although buying your bike from a private seller without insurance is possible, you must have motorcycle insurance coverage to ride it legally.
6. Does Most Car Insurance Cover Glass Damage?
Well, if you’re a thorough person, among the many car and motorcycle insurance questions in your head, you must have wondered whether car insurance covers glass damages. The good news is that your comprehensive insurance will cover such damages. However, it won’t when the damage results from an accident, whereby your collision coverage or the other driver’s insurance coverage may pay for the damages.
Unexpected hail, a falling tree branch, or a rock kicked by another vehicle on the highway are possible car glass damage on your car. When such incidents damage your windshield, you’re eligible for compensation if you possess a full coverage policy with comprehensive coverage. Additionally, the policy must have full glass benefits when applicable.
In some situations, other coverages may be liable to pay for your car glass damages. Also, you may find yourself in a case where you may not find it necessary to file for glass damage. However, car insurance will cover glass damages resulting from a covered peril.
7. What Happens If My Car or Motorcycle Gets Damaged Beyond Repair?
Supposing you’re at fault for the accident and the repair costs seem more than the value of your car. In this case, with the right coverage, your insurance company will pay you the value of your vehicle less any deductible. Additionally, you may file a claim with the other driver’s insurance if you aren’t at fault. After compensation, depending on the policy specification, you might be required to forfeit the car to the insurance company. Otherwise, you can sell the car as junk and get cash for junk car.
Essentially, when the cost of repairing your motorcycle is higher than its value, your insurance company may decide to total your bike. Mostly, insurance companies have a particular threshold for motorcycle repairs; typically, the amount is around 70% – 80% of your bike’s value. Beyond that, repairing your motorcycle will be impossible. When this happens, your insurance company will give you an offer settlement in the value of your bike.
8. Does My Car or Motorcycle Insurance Cover My Injuries?
According to Forbes, in 2020 alone, there were 1,593,390 crashes resulting in injuries. For this reason, you’re justifiable to ask whether your insurance can cover your injuries. It’s an important one to add to your car and motorcycle insurance questions list. Also, it will be wise to talk to a car accident lawyer for advice on the best insurance coverage plan.
No-fault insurance, also known as personal injury protection (PIP), is an essential component of the automobile insurance coverage plan that covers the medical costs of an accident. The good news is that the plan covers injured passengers (even without insurance) and policyholders. When medical care costs exceed the allowable auto insurance policy’s PIP limits, sometimes health insurance will cover the remainder.
Motorcycle insurance sometimes works similarly to car insurance. A typical motorcycle insurance policy will include liability insurance. The plan covers the damages you cause to others, but the policy can cover your injuries and your bike. Additionally, if you have several motorcycles, you can opt for a multi-bike policy, which attracts a hefty discount from your insurer.
9. What Kinds of Repairs Does My Insurance Cover?
According to the Washington Post, vehicle repair prices increase by 20% annually! This rate is five times the overall rate of inflation. For this reason, while sourcing the right insurance coverage, among your many car and motorcycle insurance questions, always ask what kind of repairs the insurer will cover. Go a step further and inquire whether they cover any car body services.
Like any warranty, your vehicle’s warranty will also expire after some time. For this reason, you may consider applying for a car repair insurance cover, also known as mechanical breakdown insurance (MBI). Typically, this insurance coverage is available from major insurers. Getting this will save you significant money you’d have used for your motor vehicle repairs. However, this kind of insurance coverage isn’t mandatory in any state and isn’t a part of your everyday auto insurance policies.
Automobile insurance will not cover mechanical problems unless they result from a covered peril. The covered perils typically include hitting an animal, car accidents, or a tree branch that accidentally falls on your vehicle, causing substantial damages. Car insurance typically compensates for such accidents if you have a comprehensive or collision coverage plan.
10. Will My Insurance Provider Pay Me Fairly After an Accident?
Let’s face it. Before settling on an insurer, while asking an agent your many car and motorcycle insurance questions, you will want to know if the insurer compensates claims fairly after a car accident injury, right? However, having an insurance dispute claim lawyer on speed dial is good if you wish to dispute your compensation settlement.
Although rare, sometimes there may be honest disagreements between you and your insurer, preventing a satisfactory settlement agreement. When this happens, seeking non-binding/binding arbitration or mediation from a non-disinterested party will be great. However, if the resolution fails, you should prep your lawyer as the lawsuit proceeds to trial.
Typically, a settlement will be reached during the legal process – sometimes even after a jury’s verdict. While most personal injury cases settle quickly before the judge gives their verdict, it isn’t unusual for engaging parties to agree on compensation post-verdict. In addition, this can happen when potential appeals and ongoing legal processes prompt further negotiations.
Let’s agree. Before settling on your insurance provider, you may have plenty of car and motorcycle insurance questions buzzing in your mind. Well, it’s pretty normal. Asking the right questions helps you make the right decision. To get you on the right track, ask about the insurer’s compensation process and amount, premium amount, and discounts. Are you wondering how to choose your ideal insurance cover? Contact us today for pro advice.