How To Get the Best and Cheapest Motorcycle Insurance

From Bobbie Sage

Now that you have found the bike for you, it's time to get it insured. But, before you call just any insurance agent you will want to learn how the insurance company decides your rate.

By educating yourself on how the insurance company will view you, you can find the best insurance coverage for you and your bike while at the same time saving money. First, to find the best and cheapest motorcycle insurance you must understand how the insurance company will rate you:

1. Your Bike: If you have the latest and flashiest bike, that will cost you more than an older, basic motorcycle.

2. Your Age: As with auto insurance, usually the older you are the cheaper your rates will be. But, if you are new to operating motorcycles you will probably be in a higher rate category until you gain some riding experience.

3. Your Address: Sometimes the high insurance rates you receive can be greatly influenced by where you live. If you live and/or regularly drive in a high crime or high accident area, your rates will likely be higher than someone in a zip code with less crime and accidents.

4. Your Driving History: All accidents count. Even if you are new to a motorcycle, the accidents you had in your automobile will count against you. Therefore, the cleaner your driving record, the cheaper your insurance will be.

5. Your Job: Where you are driving to and parking your bike will influence your rate. If you have to keep your bike parked on a construction site, you insurance may be increased due to the increased risk of injury to your bike.

Now that you know how the insurance company will view and rate you, here are some tips on how to get a good deal:

1. Shop, Shop, and Shop More: Insurance can vary widely in the same region. Take a whole day to call as many companies as you can to get a rate quote. Shopping around for insurance can sometimes be the single best way to cut your insurance costs.

2. Securing Your Bike: What can you do to keep your bike more secure? If you can garage your bike, alarm it, or secure it somehow while it is parked, you may be able to secure yourself some discounts on your insurance.

3. Don't Over insure: Remember, if something happens to your motorcycle, you will only receive the market value so over insuring will not help you get a higher price for your bike.

4. Mileage: If you only ride your bike once in a while during the summer for pleasure, you should be able to get a better rate if you can keep your mileage low.

5. Special Motorcycle Training: Taking special DMV or other motorcycle classes can help decrease you rate. Just make sure you keep your certification documents handy for the insurance company to view.

There is no reason to overpay one insurance company when another one is willing to give you a better deal. If an accident would occur you will get the same value for your bike regardless of what company you choose. By taking the time to find out how the insurance company will view you, your bike, and your riding habits, you can learn how to save while still getting a great policy.

Don't Buy Insurance You Don't Need

From Bobbie Sage,

One important way to reduce your overall insurance costs is to avoid purchasing insurance policies that you do not need. The list of policies one may not need will be different for everyone because of the difference in individual risk. For example, someone who does not own a home would not need to purchase a homeowners policy because there is no risk to them of losing their home.

That is an obvious example, but there are times when one's risk is very small and suffering the consequences of the loss is a better risk than purchasing a policy. Below is a list of insurance policies that most people would not need to purchase for various reasons (reasons are listed when applicable):

Insurance to Avoid:

1. Comprehensive and collision coverage for automobiles that have little or no value

2. Personal injury protection coverage (PIP) or just buy the minimum if you have a good health insurance policy

3. Roadside assistance if you already belong to an organization that offers this

4. Mechanical breakdown insurance if you currently own a new car or have a leased vehicle that is still under warranty

5. Rental Car Insurance if you have a current full coverage policy or a credit card that already provides this insurance (check with your agent to see how much your current policy will cover)

6. Life Insurance if you are single and have NO dependents (this includes avoiding life insurance for children!)

7. Travel insurance if your current health insurance policy covers you abroad

8. Extended Warranties on Appliances (this in the end may cost more than just buying a new one)

9. Insurance on outstanding credit card balances (this type of insurance can be costly and has a lot of loopholes to go through before any benefit is paid)

10. Credit Insurance, which is voluntary insurance on your mortgage (a typical life insurance policy would be a better option)

By avoiding the above policies, you will not reduce your risk and you still may experience a loss in any or all of the above categories, but the risk for most is so small it's just not worth the price of the insurance.

Considering Disability Income Insurance

From Bobbie Sage

Can you believe that according to some estimates one out of every ten persons will become permanently disabled before age 65? If you became that “one” and you could not perform your current job, what options would you have? For most people this would be a financial tragedy, and unfortunately most rely solely on Social Security, or workmen’s compensation and unemployment insurance from their employers to cover any unexpected disability. The trend of relying solely on these forms of disability income coverage is unfortunate because the maximum benefits from these sources, in most cases, is very limited and most people would have to dramatically change their lifestyle to survive on these types of disability income alone. Considering a disability income insurance policy from your insurance agent is an alternative to consider for people who realize the risk of becoming disabled and want to protect their current income and standard of living.

Disability income insurance is designed to replace one’s income when they are no longer able to work due to a disability.

There are many different elements that make up a disability income insurance policy so it is important to understand when and how one will receive the disability income if the need arises. For example, one will need to know how their policy defines and covers short and long-term disability and total disabilities. In addition, it is also important to know if there is a waiting period for the income to kick-in and how or if the income from the disability insurance policy will affect Social Security, workmen's compensation or unemployment benefits. There are also different types of policies to consider such as choosing a short or long-term policy period. Another key element to look for when choosing a policy is knowing if it covers disabilities from both accidents and illnesses. Here is a list of questions that will be important to ask and discuss with your agent when considering a disability income insurance policy:

1. What is the definition of disability in my policy?
2. How long will I receive my benefits?
3. How much will I receive? (usually a % of one’s current salary)
4. Will my benefit amount adjust for inflation?
5. Is there a waiting period before my benefits kick-in?
6. Can I get partial benefits if I can still work part-time?
7. How will my benefits affect my Social Security, workmen’s compensation, or unemployment benefits?
7. What are the exclusions of the policy?
8. Is the issuing company strong financially?
9. Can I renew my policy without doing another medical exam?

It is best to meet with a few agents to compare policies and quotes and don’t be afraid to ask a lot of questions. If you are working with an agent who does not answer your questions to your understanding, it is best to find an agent who is willing to take the time to help you understand the policy in-depth. Like any insurance policy, disability income insurance has many different coverages that need to be understood and it is especially important that you know what you are getting and when, since this will be the income you and your family may be depending on in the future.