TIPS FOR CHOOSING THE RIGHT INSURANCE DEDUCTIBLE

An insurance deductible applies to coverages protecting your motorcycle. It is the amount you agree to pay out of pocket before your insurance provider may pay the costs associated to your claim.

For example, if you have a $500 deductible and your repair costs total $2,000, you will pay $500, and your insurer may cover the remaining $1,500.

Deductibles apply to certain types of coverage, including collision and comprehensive insurance, but they typically don’t apply to liability coverage. A Liability insurance claim may pay for damages or injuries you cause to others, so it does not require a deductible.

Special Cases:

• Uninsured/Underinsured Motorist Property Damage (UMPD) may have a separate deductible.

• Custom parts and accessories coverage often requires a specific deductible for non-stock modifications.

Your premium is the amount you pay for your insurance policy, typically on a monthly or annual basis. Your deductible is the cost you are responsible for when you file a claim before your motorcycle insurance coverage takes effect.

There’s a direct trade-off between these two:

• Higher deductibles → Lower premiums (but higher out-of-pocket costs if you file a claim).

• Lower deductibles → Higher premiums (but less to pay out-of-pocket when making a claim).

The key is finding the right balance between affordability and risk tolerance.

>> Learn more about the average motorcycle insurance cost

When you file a claim for damages covered by your policy, you are responsible for your deductible amount. Once your deductible is met, your insurer may cover the remaining costs up to the policy’s limits.

You pay your deductible whenever you file a claim for a covered event under your comprehensive or collision insurance. If the damages are less than your deductible, you’ll need to cover the full cost yourself.

If another driver is at fault, their liability coverage may be responsible for paying your damages.

However, if they are uninsured or underinsured, you may need to use your own policy (e.g., uninsured motorist coverage), which may still require a deductible.

Some insurers offer deductible waivers if another driver is identified as at fault.

The most common motorcycle insurance deductibles range between $250 and $1,000. Some policies offer deductibles as low as $0, while others can be set as high as $2,000.

The right choice depends on your risk tolerance and how much you can afford to pay out of pocket in the event of an insurance incident.

A higher deductible typically results in lower insurance premiums since you are assuming more financial responsibility in the event of a claim. A lower deductible increases your premiums because your insurer covers more of the claim costs.

It’s essential to compare different deductible levels and their impact on your overall insurance costs.

Higher Deductible ($1,000 - $2,000):

• Pros: Lower monthly premiums discourage filing small claims.

• Cons: Higher out-of-pocket costs if an accident occurs.

Lower Deductible ($250 - $500):

• Pros: Less financial strain when filing a claim.

• Cons: Higher premiums, potentially increasing overall costs over time.

Selecting the right damage deductible requires evaluating your financial situation and understanding the risks involved. Here’s how to decide.

The more expensive your bike, the more it may cost to insure. If your motorcycle is worth a significant amount, a lower deductible may provide better protection, ensuring you don’t face a substantial out-of-pocket expense in case of a claim.

>> Learn more about the depreciation value of motorcycles per year

Consider how much you have set aside for emergencies. Can you pay a $1,000 deductible out of pocket? If you can comfortably afford a higher deductible, you may benefit from lower premiums.

However, if paying a large deductible would put you in financial trouble, a lower deductible might be the better choice.

Ask your insurance provider for quotes with different deductible options. Comparing the premium savings versus the potential out-of-pocket costs can help you make a more informed decision.

High-mileage riders (daily commuters): Consider a lower deductible since exposure to accidents is higher.

Casual or weekend riders: A higher deductible may make sense since the risk of claims is lower.

Frequent small claims may raise insurance costs and could lead to policy non-renewal. A higher deductible discourages unnecessary claims and may help keep premiums stable long-term.

Yes, most insurers allow you to adjust your deductible. However:

• Some insurers may allow mid-term deductible changes, but they typically require a policy endorsement and may not lower your premium immediately.

• Increasing your deductible after an accident will not likely reduce costs for an existing claim.

The ideal motorcycle insurance policy deductible depends on your budget, riding habits, and risk tolerance. A higher deductible lowers monthly premiums but requires greater out of pocket dollars in an accident. A lower deductible means fewer out-of-pocket costs at claim time but results in higher premium payments.

Key Takeaways:

• Assess your financial ability to pay a deductible.

• Understand how different deductible levels impact premiums.

• Factor in your motorcycle’s value and your riding frequency.

• Compare insurance quotes to see how much you can save with different deductibles.

By weighing these factors, you can choose a deductible that aligns with your financial security and riding lifestyle.

Call one of our licensed agents today (800-909-8393) to find an affordable motorcycle insurance policy that meets your needs.