Compare Motorcycle Insurance
Before taking a new motorcycle on the road, motorcycle insurance must be purchased in order to legally drive in most states. Although price is often the main factor in selecting motorcycle insurance coverage, the cheapest company is not always the best option and several quotes should be compared before making a final decision.
Everyone wants a good deal, but not all motorcycle policies and companies are created equal and there are many factors that should be considered such as financial stability, reputation, customer service, and coverage options. It pays to take the time to research before signing on the dotted line. Insurance quotes that are cheaper initially may end up costing a bike owner more in the long-term, if for example the coverage is not sufficient or the company refuses to pay a claim.
Factors to Consider When Comparing Motorcycle Insurance
Comparing motorcycle insurance does not have to be too difficult or overwhelming using the following tips:
Coverage Details
Comparing coverage details such as deductible, premium, and limits are key to ensuring that each policy has the same options. The first step is determining the level of coverage needed, which depends on a variety of factors such as personal preference, financial situation, riding frequency, and type of motorcycle, among others. Some policies may only offer liability coverage, the minimum required by most states, while others may include options such as collision, comprehensive, and uninsured/underinsured motorist coverage. Other enhancements may make policies more attractive, such as personal injury protection, emergency road service, rental car and custom parts coverage, as well as enhanced liability limits and medical coverage.
Insurers’ Financial Strength
Choosing a company that is solid financially is essential to ensuring there will be plenty of financial resources to pay in the event of a claim, especially if dealing with a smaller, more unfamiliar carrier. Insurance companies are rated based on their financial strength by companies such as Standard & Poor’s or A.M. Best, with information available on their web sites. Standard & Poor’s rates companies from AAA (highest), to D (lowest), with some companies received a NR (not rated) or R (under regulatory supervision). A.M. Best rates from A++ (highest) to D (lowest), with companies also able to receive a rating of F (in liquidation), S (suspended), or E (under regulatory supervision).
Customer Service Ratings and Reviews
Examining reports about customers’ experiences with various insurance companies is important in determining how the provider compares if questions arise or an accident happens and a claim must be filed. J.D. Power and Associates conducts surveys of customer satisfaction and provides insight as to how each company rates in areas such as claims handling, policy offerings, price, and dealing with call center representatives. In addition, the National Association of Insurance Commissioners provides links to each state's insurance department, with many providing customer complaint ratios for companies selling insurance in that state. Another resource for checking customer satisfaction is the Better Business Bureau.
Claims Service & Support
Some companies may offer customer claims service and support 24 hours, 7 days a week, while others may only be open during regular business hours. In the event of an emergency, determine the level of importance in obtaining help immediately, or waiting until the next day. For individuals who prefer doing the majority of business online, many companies also offer extensive services through their web site, while some companies conduct the majority of business over the telephone. If face-to-face relationships are important, an individual may select a local agency that provides more personalized service.
Payment Options
Verify what types of payment options are available and if there are any discounts for paying premiums in full at the start of the policy, or for using a certain type of payment. Companies may have different payment schedule options as well as accepted forms of payment such as check, credit card, or electronic transfers.
Personal Recommendations
Excellent sources of information on insurance carriers are family, friends, and co-workers. Ask about current providers and any experiences or insights regarding how claim processes or customer service issues have been handled. Local body shops routinely interact with insurance adjusters and can also be a good source of information.
Remember to take the time and compare several companies, using all resources available. In the event of an emergency, the extra effort will be worth it!
Resources for More Information
- Standard & Poor’s – Provides useful ratings information to buyers regarding financial strength of insurance companies.
- A.M. Best – Rating and information agency devoted to insurance organizations.
- J.D. Power and Associates - Conducts surveys of customer satisfaction and can provide insight as to how each company rates in areas such as claims handling, policy offerings, price, and dealing with call center representatives.
- National Association of Insurance Commissioners (NAIC) – Educates the public about insurance options and provides links to each state’s insurance departments.
- Insurance Information Institute - Covers a broad range of insurance topics including how to choose an insurance company.
- Better Business Bureau - Provider of information on business reliability and practices, including insurance companies.