Making Sure Clients Know Who is Covered Under Their Motorcycle Policy

Motorcycles are fun vehicles that fascinate everyone in some capacity. They’re fast, they’re open, they’re loud and entertaining, and people often want a ride or two when they have a friend who rides. Some friends even want to take a spin around the block by themselves.

It’s important that, before your client hands over the keys, they know who is covered under their motorcycle insurance policy and who isn’t.  

Permissible Drivers on a Motorcycle Policy 

One way to allow drivers to operate a motorcycle is by having them listed on the policy as insureds. This guarantees they’ll have coverage after an insured accident, but it also puts more risk on the policyholder. Be sure to explain that adding another driver to their motorcycle insurance policy can raise their rates. When premiums are calculated for a single policy with multiple drivers, each driver’s credit score and driving record is taken into account. If a client adds a driver with a poor credit score or driving record, their insurance premiums can go up as a result.

There is also the matter of excluded drivers. This works twofold. On one hand, an insurance agency has the right to exclude certain drivers from the policy. For example, if someone in the same household has an extremely poor driving record, long claims history, poor credit score, etc., the insurance agency may insure the policyholder with the caveat that this driver is not allowed on the motorcycle. If the bad driver is allowed to operate the motorcycle and gets into a wreck, any damage they cause will not be covered under the policy. Drivers that are excluded from insurance policies typically have DUIs or a suspended license.

On the other hand, the client may choose to exclude certain drivers, as well. If they don’t want a driver operating the motorcycle vehicle, they can exclude that driver. If the driver takes the client’s motorcycle without permission, any damage they may cause can be covered, as long as the client has comprehensive coverage. But if the policyholder excludes a driver and then allows said driver to operate the motorcycle for whatever reason, accidents in this case will not be covered.

If a driver is allowed to operate the motorcycle who is not a listed or excluded driver, they may or may not be covered. In all likelihood, compensation for damages they cause or bodily injury they suffer should be received from that driver’s motorcycle or car insurance policy rather than the policyholder’s.

Theft of the Vehicle 

Sometimes, motorcycles are taken without permission either by friends or strangers. In this case, any damage the thief causes should be covered under comprehensive coverage. Comprehensive coverage covers damage to the vehicle due to fire, wind, hail, falling objects, theft, vandalism and other incidents not involving collision. Whether the thief is an excluded driver or not, any damage they cause should be covered. The client should immediately report the theft to the authorities and their insurance agent. If the motorcycle is recovered without damage, they likely won’t receive compensation. However, in some cases, the motorcycle is only recovered after compensation has already been paid out. In this case, the insurance agency may claim the motorcycle as theirs, since they paid compensation for it.

Passengers 

So, what if your client is simply giving someone a ride who isn’t on their motorcycle policy, and they cause a small wreck. Are they still covered?

In short, yes. Make sure your client carries guest passenger liability coverage before they take anyone else on the motorcycle, as this insurance helps cover passenger bodily injury in case of an accident.