Selling insurance can be challenging enough without all of the misinformation that is spread on the internet and among clients. It is important to keep track of this misinformation so that you can easily contradict it and educate your clients when they bring up their questions about motorcycle insurance.
Here are a few common misconceptions about motorcycle insurance that you may have to clear up with your clients.
Motorcycle Insurance is Expensive
Many people assume that, because motorcycles are less safe than cars, that the insurance to insure a motorcycle is more expensive. On the contrary, motorcycle insurance is generally cheaper than your average car insurance policy.
For one, motorcycles are much smaller than cars and can cost less to repair or replace depending on the individual motorcycle. The average cost of car insurance is around $1,427 a year while the average cost of motorcycle insurance is around $702.
Motorcycle insurance premiums vary depending on a variety of factors, such as:
- Driving record
- Credit score
- Coverage limits
- Location
- Value of the motorcycle
Car Insurance Rates Don’t Affect Motorcycle Insurance Rates
This is a misconception that is common when a driver insures their car and motorcycle with separate insurance agencies. Some people think that the two are different entities when it comes to insurance. On the contrary, any accidents you have in your car can have an impact on your motorcycle insurance rates. In fact, it’s usually recommended that drivers bundle their car and motorcycle insurance with the same insurer, as that insurer is more likely to work with a driver when it comes to accident forgiveness, etc.
Not Making a Claim Will Prevent Premiums Going Up
Unfortunately, a client’s rates can still go up even if they choose not to file a claim on their motorcycle insurance policy. An insurance company can (and likely will) find out about an accident and have the right to adjust premiums in return. This is especially true if someone else is involved in the accident and the other party files a claim.
A Friend Allowed to Drive the Motorcycle Will be Covered by Their Insurance
Even if a friend is the one to cause an accident on a client’s motorcycle, the client—and their insurer—can still be held responsible for damages or injuries they cause, which in turn may affect the insured driver’s rates. It is important for insured drivers to be careful about who they let operate their motorcycle.
Parking Tickets Make Motorcycle Insurance Rates Go Up
Basic parking tickets won’t necessarily have a large impact on motorcycle insurance rates, if any. They may affect insurance rates if the tickets go unpaid, however.
Motorcycles Only Need State Minimum Requirements
Just because motorcycles are small doesn’t mean they can’t cause a lot of damage. Motorcycles tend to go faster than cars, so collision impacts can be devastating. This is also true for hitting objects or causing injuries to pedestrians. Be sure to inform clients about how much insurance is available to them. They may want to consider full coverage motorcycle insurance, as only liability minimums will not cover their injuries or damage to their motorcycle.
Motorcycles Don’t Need Insurance During Winter
Some drivers think that they should cancel their motorcycle insurance during the winter months since they won’t be riding. This is a good way to raise their insurance premiums, however. A lapse in coverage can make premiums more expensive when they return to purchase a new motorcycle insurance policy.
Any Other Driver Who Causes an Accident Will Pay for Damages
Fault laws vary state to state, and motorcycles may be handled differently when it comes to car accidents. In some cases, a driver’s car insurance policy may not cover a motorcyclist. Clients should know the fault rules of their state and have medical payments coverage to cover their injuries in case of an accident. Texas, for example, is a fault state. This means that the driver at fault for an accident is usually held accountable for the damages, but this depends on the circumstances and other factors.
Motorcycle insurance doesn’t have to be confusing. If your client has any questions about their policy or they are searching for a new policy, be sure to expel the myths that may be preventing them from getting the coverage they need. As their agent, you are their trusted source of information. Keep up to date with the myths surrounding motorcycle insurance so that you can better inform your clients when necessary.
Also Read: Making Sure Clients Know Who is Covered Under Their Motorcycle Policy