How much motorcycle insurance do you need?
In its latest traffic safety fact sheet, the agency revealed a spike in the number of riders killed in crashes, hitting 5,579 in 2020 – an 11% rise from the previous year. The figure accounted for 14% of all traffic fatalities and was the highest ever recorded since the department began compiling data in 1975. The report also showed that motorcycle riders were 28 times more likely to be killed in a collision compared to occupants of other types of vehicles.
In terms of injuries, the NHTSA reported 82,528 incidents in 2020, which was a marginal 2% drop from the previous year’s 83,814.
Read more: The rise of the E-scooter and micro-mobility insurance
What types of coverage does motorcycle insurance provide?
According to the Insurance Information Institute (III), it is crucial for motorcycle riders to understand the different types of protection available to them to find the right coverage that fits their needs.
“Choosing the right insurance policy is much like choosing the right motorcycle,” III wrote on its website. “You want it to fit your needs and lifestyle – and to be within your budget.”
These are the most common types of motorcycle coverage available, according to the institute:
Liability insurance: Required in most states, this type of policy provides compensation for bodily injury and property damage (BI & PD) that the motorcycle rider causes to others. Coverage, however, excludes losses and injury that the biker sustains. Depending on state laws, riders may also access guest passenger liability insurance, which covers their passengers.
Collision coverage: This covers damages to the rider’s motorcycle after a road accident, regardless of who is at fault. This is usually included in a full-coverage policy.
Comprehensive coverage: This pays out the cost to repair or replace the motorcycle for damages resulting from events other than road accidents such as fire, theft, vandalism, or flooding. Like collision protection, this is also a part of a full-coverage policy.
Personal injury protection: Also called PIP insurance, this coverage pays for the rider’s medical expenses after an accident, no matter who is at fault. This type of policy is required in 14 states.
Uninsured/underinsured motorist (UM/UIM) coverage: This covers the rider for losses they incur after an accident if the at-fault driver is uninsured – does not have insurance – or underinsured – does not have enough insurance. UM/UIM policies pay out for medical expenses, lost wages and, in some cases, property damage.
Coverage for customized motorcycle parts: This covers any accessories or custom enhancements that the owner makes on their motorcycle, subject to limits.
Read more: Personal injury protection insurance – a state-by-state guide
What type of motorcycle coverage does each state require?
Each state has a set mandatory minimum for liability coverage often expressed in three numbers. Compulsory motorcycle insurance in New York, for example, is presented as 25/50/10, which translates into the following coverage requirements:
$25,000 is the maximum amount the insurer will pay to one person injured or killed in an accident that was the rider’s fault
$50,000 is the maximum amount the insurance company will pay for claims filed on behalf of two or more people in one accident
$5,000 is the maximum amount the carrier will cover for a property damage claim from a single accident
The table below from personal finance firm MoneyGeek shows the minimum motorcycle requirements in each state, including the type of coverage necessary and liability limits. All details are up to date as of April 2022.
State
Coverage required
Minimum liability limits
Alabama
BI & PD liability
25/50/25
Alaska
BI & PD liability
50/100/25
Arizona
BI & PD liability
25/50/15
Arkansas
BI & PD liability, PIP
25/50/25
California
BI & PD liability
15/30/5
Colorado
BI & PD liability
25/50/15
Connecticut
BI & PD liability, UM, UIM
25/50/25
Delaware
BI & PD liability, PIP
25/50/10
District of Columbia
BI & PD liability, UM
25/50/10
Florida
N/A
None
Georgia
BI & PD liability
25/50/25
Hawaii
BI & PD liability, PIP
20/40/10
Idaho
BI & PD liability
25/50/15
Illinois
BI & PD liability, UM, UIM
25/50/20
Indiana
BI & PD liability
25/50/25
Iowa
BI & PD liability
20/40/15
Kansas
BI & PD liability, PIP
25/50/25
Kentucky
BI & PD liability, PIP, UM, UIM
25/50/25
Louisiana
BI & PD liability
15/30/25
Maine
BI & PD liability, UM, UIM, Medpay
50/100/25
Maryland
BI & PD Liability, PIP, UM, UIM
30/60/15
Massachusetts
BI & PD liability, PIP
20/40/5
Michigan
BI & PD liability, PIP
20/40/10
Minnesota
BI & PD liability, PIP, UM, UIM
30/60/10
Mississippi
BI & PD liability
25/50/25
Missouri
BI & PD liability, UM
25/50/25
Montana
BI & PD liability
25/50/20
Nebraska
BI & PD liability, UM, UIM
25/50/25
Nevada
BI & PD liability
25/50/20
New Hampshire
FR only
25/50/25
New Jersey
BI & PD liability, PIP, UM, UIM
15/30/5
New Mexico
BI & PD liability
25/50/10
New York
BI & PD liability, PIP, UM, UIM
25/50/10
North Carolina
BI & PD liability, UM, UIM
30/60/25
North Dakota
BI & PD liability, PIP, UM, UIM
25/50/25
Ohio
BI & PD liability
25/50/25
Oklahoma
BI & PD liability
25/50/25
Oregon
BI & PD liability, PIP, UM, UIM
25/50/20
Pennsylvania
BI & PD liability, PIP
15/30/5
Rhode Island
BI & PD liability
25/50/25
South Carolina
BI & PD liability, UM
25/50/25
South Dakota
BI & PD liability, UM, UIM
25/50/25
Tennessee
BI & PD liability
25/50/15
Texas
BI & PD liability, PIP
30/60/25
Utah
BI & PD liability, PIP
25/65/15
Vermont
BI & PD liability, UM, UIM
25/50/10
Virginia
BI & PD liability, UM, UIM
25/50/20
Washington
BI & PD liability
25/50/10
West Virginia
BI & PD liability, UM, UIM
25/50/25
Wisconsin
BI & PD liability, UM, Medpay
25/50/10
Wyoming
BI & PD liability
25/50/20
Source: MoneyGeek
How much does motorcycle insurance cost?
Just like other types of insurance, the price of motorcycle premiums depends on several factors. Here are some of the factors that impact the cost of motorcycle insurance:
Age and riding experience
Residence
Type of bike
Frequency of use
Where the motorcycle is parked
Speeding and traffic tickets
Accident and claims history
Credit rating
Type of coverage
Amount of deductible
How much motorcycle insurance do riders need?
While most states require motorcycle riders to carry some amount of liability insurance, this is often just the minimum allowed for them to legally operate their bikes. To make sure they are adequately protected, experts advise bikers to take out coverage that is more than the state minimum and purchase additional policies that suit their needs and lifestyle.
“When it comes to insurance, the more coverage you need, the more you’ll pay,” MoneyGeek explained. “While full coverage policies tend to cost more than liability-only plans, they increase your coverage dramatically. The additional financial protection could save you money in the long run — especially if you’re in an at-fault accident.
“It’s important to purchase enough insurance to protect your assets. If you don’t purchase comprehensive and collision coverage, you won’t be protected against theft or damages to your motorcycle. If you only purchase the state minimum level of liability insurance, you may not have enough coverage to pay for all the damages you cause in an at-fault accident,” the firm added.
