States impose mandatory minimums – but are these enough?
Insurance News
By Mark Rosanes
Motorcycle insurance is a legal requirement in almost all states in the US for anyone riding their two-wheelers on the road. At the very least, it is mandatory for motorcycle riders to take out liability coverage, which provides financial compensation for bodily injury and property damage they have caused to others.
Recent data from the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) highlights the importance of getting this type of protection.
In its latest traffic safety fact sheet, the agency revealed a spike in the number of riders killed in crashes, hitting 5,579 in 2020 – an 11% rise from the previous year. The figure accounted for 14% of all traffic fatalities and was the highest ever recorded since the department began compiling data in 1975. The report also showed that motorcycle riders were 28 times more likely to be killed in a collision compared to occupants of other types of vehicles.
In terms of injuries, the NHTSA reported 82,528 incidents in 2020, which was a marginal 2% drop from the previous year’s 83,814.
Read more: The rise of the E-scooter and micro-mobility insurance
What types of coverage does motorcycle insurance provide?
According to the Insurance Information Institute (III), it is crucial for motorcycle riders to understand the different types of protection available to them to find the right coverage that fits their needs.
“Choosing the right insurance policy is much like choosing the right motorcycle,” III wrote on its website. “You want it to fit your needs and lifestyle – and to be within your budget.”
These are the most common types of motorcycle coverage available, according to the institute:
- Liability insurance: Required in most states, this type of policy provides compensation for bodily injury and property damage (BI & PD) that the motorcycle rider causes to others. Coverage, however, excludes losses and injury that the biker sustains. Depending on state laws, riders may also access guest passenger liability insurance, which covers their passengers.
- Collision coverage: This covers damages to the rider’s motorcycle after a road accident, regardless of who is at fault. This is usually included in a full-coverage policy.
- Comprehensive coverage: This pays out the cost to repair or replace the motorcycle for damages resulting from events other than road accidents such as fire, theft, vandalism, or flooding. Like collision protection, this is also a part of a full-coverage policy.
- Personal injury protection: Also called PIP insurance, this coverage pays for the rider’s medical expenses after an accident, no matter who is at fault. This type of policy is required in 14 states.
- Uninsured/underinsured motorist (UM/UIM) coverage: This covers the rider for losses they incur after an accident if the at-fault driver is uninsured – does not have insurance – or underinsured – does not have enough insurance. UM/UIM policies pay out for medical expenses, lost wages and, in some cases, property damage.
- Coverage for customized motorcycle parts: This covers any accessories or custom enhancements that the owner makes on their motorcycle, subject to limits.
Read more: Personal injury protection insurance – a state-by-state guide
What type of motorcycle coverage does each state require?
Each state has a set mandatory minimum for liability coverage often expressed in three numbers. Compulsory motorcycle insurance in New York, for example, is presented as 25/50/10, which translates into the following coverage requirements:
- $25,000 is the maximum amount the insurer will pay to one person injured or killed in an accident that was the rider’s fault
- $50,000 is the maximum amount the insurance company will pay for claims filed on behalf of two or more people in one accident
- $5,000 is the maximum amount the carrier will cover for a property damage claim from a single accident
The table below from personal finance firm MoneyGeek shows the minimum motorcycle requirements in each state, including the type of coverage necessary and liability limits. All details are up to date as of April 2022.
State | Coverage required | Minimum liability limits |
|---|---|---|
Alabama | BI & PD liability | 25/50/25 |
Alaska | BI & PD liability | 50/100/25 |
Arizona | BI & PD liability | 25/50/15 |
Arkansas | BI & PD liability, PIP | 25/50/25 |
California | BI & PD liability | 15/30/5 |
Colorado | BI & PD liability | 25/50/15 |
Connecticut | BI & PD liability, UM, UIM | 25/50/25 |
Delaware | BI & PD liability, PIP | 25/50/10 |
District of Columbia | BI & PD liability, UM | 25/50/10 |
Florida | N/A | None |
Georgia | BI & PD liability | 25/50/25 |
Hawaii | BI & PD liability, PIP | 20/40/10 |
Idaho | BI & PD liability | 25/50/15 |
Illinois | BI & PD liability, UM, UIM | 25/50/20 |
Indiana | BI & PD liability | 25/50/25 |
Iowa | BI & PD liability | 20/40/15 |
Kansas | BI & PD liability, PIP | 25/50/25 |
Kentucky | BI & PD liability, PIP, UM, UIM | 25/50/25 |
Louisiana | BI & PD liability | 15/30/25 |
Maine | BI & PD liability, UM, UIM, Medpay | 50/100/25 |
Maryland | BI & PD Liability, PIP, UM, UIM | 30/60/15 |
Massachusetts | BI & PD liability, PIP | 20/40/5 |
Michigan | BI & PD liability, PIP | 20/40/10 |
Minnesota | BI & PD liability, PIP, UM, UIM | 30/60/10 |
Mississippi | BI & PD liability | 25/50/25 |
Missouri | BI & PD liability, UM | 25/50/25 |
Montana | BI & PD liability | 25/50/20 |
Nebraska | BI & PD liability, UM, UIM | 25/50/25 |
Nevada | BI & PD liability | 25/50/20 |
New Hampshire | FR only | 25/50/25 |
New Jersey | BI & PD liability, PIP, UM, UIM | 15/30/5 |
New Mexico | BI & PD liability | 25/50/10 |
New York | BI & PD liability, PIP, UM, UIM | 25/50/10 |
North Carolina | BI & PD liability, UM, UIM | 30/60/25 |
North Dakota | BI & PD liability, PIP, UM, UIM | 25/50/25 |
Ohio | BI & PD liability | 25/50/25 |
Oklahoma | BI & PD liability | 25/50/25 |
Oregon | BI & PD liability, PIP, UM, UIM | 25/50/20 |
Pennsylvania | BI & PD liability, PIP | 15/30/5 |
Rhode Island | BI & PD liability | 25/50/25 |
South Carolina | BI & PD liability, UM | 25/50/25 |
South Dakota | BI & PD liability, UM, UIM | 25/50/25 |
Tennessee | BI & PD liability | 25/50/15 |
Texas | BI & PD liability, PIP | 30/60/25 |
Utah | BI & PD liability, PIP | 25/65/15 |
Vermont | BI & PD liability, UM, UIM | 25/50/10 |
Virginia | BI & PD liability, UM, UIM | 25/50/20 |
Washington | BI & PD liability | 25/50/10 |
West Virginia | BI & PD liability, UM, UIM | 25/50/25 |
Wisconsin | BI & PD liability, UM, Medpay | 25/50/10 |
Wyoming | BI & PD liability | 25/50/20 |
Source: MoneyGeek
How much does motorcycle insurance cost?
Just like other types of insurance, the price of motorcycle premiums depends on several factors. Here are some of the factors that impact the cost of motorcycle insurance:
- Age and riding experience
- Residence
- Type of bike
- Frequency of use
- Where the motorcycle is parked
- Speeding and traffic tickets
- Accident and claims history
- Credit rating
- Type of coverage
- Amount of deductible
How much motorcycle insurance do riders need?
While most states require motorcycle riders to carry some amount of liability insurance, this is often just the minimum allowed for them to legally operate their bikes. To make sure they are adequately protected, experts advise bikers to take out coverage that is more than the state minimum and purchase additional policies that suit their needs and lifestyle.
“When it comes to insurance, the more coverage you need, the more you’ll pay,” MoneyGeek explained. “While full coverage policies tend to cost more than liability-only plans, they increase your coverage dramatically. The additional financial protection could save you money in the long run — especially if you’re in an at-fault accident.
“It’s important to purchase enough insurance to protect your assets. If you don’t purchase comprehensive and collision coverage, you won’t be protected against theft or damages to your motorcycle. If you only purchase the state minimum level of liability insurance, you may not have enough coverage to pay for all the damages you cause in an at-fault accident,” the firm added.
Related Stories
- ‘Fear of missing out’ producing thrill seekers who need coverage
- Motorcycle thefts: The most stolen models and hot areas for crime
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