By Jim McCafferty

As more and more baby boomers reach the age of retirement, many are hopping onto the back of a two-wheeled machine for the feeling of freedom they haven’t experienced in years.

Motorcycle sales have steadily risen since 1992, according to the Motorcycle Industry Council.  Unfortunately, so has the number of motorcycle traffic deaths. (See chart below).

Having the proper motorcycle insurance can mean the difference between peace of mind and extreme financial loss should an accident happen. 

Not only do you need to protect your bike, you need to protect your assets should you be the cause of an accident or, even worse, a fatality due to an accident.

The state requirements are simple- you must obtain liability insurance if you own a motorcycle, although each state has different minimum limits you are required to purchase. 

Liability insurance only covers bodily injury and property damage for the other guy if you are at fault for an accident.  That means the damage to your own bike is not covered if you only carry minimum requirements.

Collision Insurance will cover physical damage to your bike in the event of an accident, less the deductible. If the bike is “totaled”, collision insurance usually pays the blue book value of the bike at the time of the accident.

Comprehensive Insurance covers damage to your bike caused by an event other than a collision, such as fire, theft, or vandalism.  There is usually a deductible for this coverage as well.

Custom Parts and Equipment Coverage protects motorcycle owners who have customizations on their bikes. Collision coverage only pays the blue book value but with Custom Parts and Equipment Coverage, the additional value you have added to your bike and listed, is reimbursable.

Uninsured/Underinsured Motorists Insurance is coverage designed to protect you should you be involved in an accident with someone who does not have insurance or has less coverage than you. 

If you are involved in an accident due to the fault of another driver and he or she does not have insurance or has less insurance than the damages involved, Uninsured/Underinsured Motorists coverage will cover the damages.

Motorcycle Traffic Fatalities in the Carolinas