You don’t necessarily need motorcycle insurance to buy a motorcycle. But if you want to register your bike and ride it legally, most states will require that you get insured—at least with liability coverage.
Motorcycle insurance policies can protect you, your passengers, and your bike in the case of an accident and theft. Crucially, liability coverage also protects you in case you cause damage to someone else’s property or person.
Key Points
• Most states require motorcyclists to carry minimum liability coverage for bodily injury and property damage caused by accidents, similar to car insurance laws.
• Florida, Montana, New Hampshire, and Washington allow motorcycle registration without liability insurance but maintain financial responsibility laws requiring payment ability for at-fault accidents.
• Minimum coverage requirements use three numbers representing bodily injury per person, bodily injury per accident, and property damage liability amounts for each state.
• Collision coverage protects against accident damage regardless of fault, while comprehensive coverage addresses theft, vandalism, fire, weather damage, and animal collisions
• Lenders financing or leasing motorcycles typically require full coverage policies comprising liability, collision, and comprehensive insurance protection for the financed vehicle
Is Motorcycle Insurance Required by Law?
Do you have to have motorcycle insurance? In most states, the answer is yes. Just as drivers of cars are required to carry auto insurance in most places, motorcyclists are required to carry minimum liability coverage as well. This covers bodily injury to others or property damage if you are the cause of an accident. Minimum coverage will vary by state.
Some states, including Florida, Montana, New Hampshire, and Washington, allow you to register a motorcycle without liability insurance. Florida doesn’t require insurance, but it does have a financial responsibility law that means if you are involved in an accident where you are at fault, you must have the ability to pay claims against property damage and injury to others.
You’ll likely also need insurance for a motorcycle if you have a temporary permit or if you’re planning to finance the purchase of a motorcycle, as many banks will require proof of insurance before issuing a loan.
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State Minimum Liability Requirements
As mentioned above, minimum liability requirements will vary by state. Liability policies consist of two types of policies: property damage and bodily injury.
Minimum coverage requirements will typically be represented by three numbers. The first represents bodily injury per person, the second represents bodily injury per accident, and the third represents property damage.
For instance, in California, motorcyclists are required to have minimum liability insurance of 15/30/5. That means they are required to have $15,000 per person for bodily injury, $30,000 per accident for bodily injury, and $5,000 of property damage coverage. Look up minimum insurance requirements in the state where you plan to register your bike.
What Happens If You Ride Without Insurance?
Rules and regulations surrounding motorcycles vary by state, but it’s a safe bet that in most states, riding without insurance is treated as a serious offense. You will possibly face fines, suspension of your license, and your bike could be impounded.
What’s more, you may need to fill out an SR-22, which is a form that signals to insurers that you are a high risk. Unfortunately, that can mean that acquiring insurance in the future may be more difficult and expensive. So, it is better to be insured from the outset than face a potentially expensive mistake.
Optional Motorcycle Insurance Coverages
While you are likely required to have liability insurance, several other types of coverage can help cover you financially if you’re in an accident. You may already be familiar with these if you drive a car, as motorcycle insurance functions much the same way auto insurance works.
How much motorcycle insurance you’ll need—similarly to how much auto insurance you need—will depend on your circumstances and appetite for risk.
Collision Coverage
Motorcycle collision coverage helps protect your bike from damage you may sustain in an accident, but also from damage from stationary objects, such as a guardrail, tree, or even a parked vehicle. Collision policies cover you regardless of who is at fault in the accident. And they may even cover you in the case of hit-and-run accidents, including if someone hits your bike while it’s parked in a parking lot.
You’ll have the option to set the value of your collision coverage, which often matches the value of your bike. Determining the value of your motorcycle can help you choose the right amount of coverage.
Collision coverage typically includes a deductible. This is the amount of money that you’re on the hook to pay before the policy will kick in. For instance, if your deductible is $500, and you’re in an accident with $1,000 worth of damage, you’ll pay $500, and your insurance will pay the rest. You’ll typically be given a choice of deductibles, and the higher the deductible you choose, the lower your monthly payments will be.
Liability coverage does not have a deductible. That means that it will pay for the full amount for damages up to the policy’s limit, with you having to pay out of pocket.
Comprehensive Coverage
You can add comprehensive coverage to your policy to protect your bike against things like theft, vandalism, or damage caused by fire or weather-related events. This type of coverage can also protect against damage caused by hitting an animal. Again, there is typically a deductible for comprehensive coverage.
Uninsured and Underinsured Motorist Coverage
Unfortunately, there are motorists out there who are uninsured or don’t carry enough insurance to cover the damage they may cause in an accident. Uninsured/underinsured motorist (UM/UIM) coverage is required in some states, and it picks up the slack if you’re hit by someone without enough insurance.
When Lenders May Require Full Coverage
When you lease or finance a motorcycle, lenders will typically require full coverage comprising liability, collision, and comprehensive coverage. Why do lenders require insurance? They are making sure that if something happens to your bike before it is fully paid off, they will be able to collect the balance on the loan.
The Takeaway
In most places in the United States, you will need motorcycle liability insurance at the very least. If you’re financing the purchase of a bike, you’ll probably be required to have collision and comprehensive insurance as well. You can work with an insurance company to develop a policy that works best for you and where you live.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
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FAQ
Can you buy a motorcycle without insurance?
If you are buying a motorcycle with cash, you can purchase one without insurance. That said, if you are financing the purchase, your lender will likely require that you have insurance. And to ride it legally on the road, you will need insurance in most states.
Do you need motorcycle insurance with a learner’s permit?
No matter whether you have a license or a learner’s permit, you are required to have motorcycle insurance in most states.
Are custom or modified bikes required to carry insurance?
Yes, you must carry insurance on bikes that are customized or otherwise modified.
Is insurance required for off-road or dirt bikes?
If you are riding on public roads or public lands, then your off-road or dirt bike likely needs to be insured. However, insurance is not required if you are riding on private lands only.
Do you need motorcycle insurance if you only ride occasionally?
If you are ever riding your motorcycle on public roads, you need to carry motorcycle insurance in the states that require it.
Can your license be suspended for riding uninsured?
Your license can be suspended if you ride without insurance. This can mean that you immediately lose driving privileges for a year, and there may be other consequences such as high reinstatement fees.
Photo credit: iStock/Igor Alecsander
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