3 Ways Motorcycle Insurance Differs From Car Coverage (and Why That Matters)

If you're about to insure your first motorcycle and you already own a car, you'll find some aspects of the process and the policy to be similar. In other respects, though, the coverage will be nearly as different as traveling on two wheels rather than four.

The similarities between insuring a motorcycle and a car begin with the overwhelming likelihood that you'll be required to do so. Only New Hampshire (the sole state without mandatory car insurance) and Florida don't require that motorcycles be insured. (Both states do, however, require bikers — and drivers — who don't carry insurance to prove that they have sufficient financial resources to cover potential liability in an accident.)

Auto and motorcycle insurance share the same basic components. The core — and usually mandatory — protection is liability coverage (including bodily injuries and property damage to others). In addition, you can protect your car or bike against accident damage with collision coverage, and against non-collision events like theft or fire with comprehensive coverage. Other options cover injuries you or your passengers sustain in an accident.

Also, as some owners of sports cars and RVs do, you can choose to insure your motorcycle for only part of the year. This can reduce your annual premiums, but may be too risky in other respects to be worth the savings.

While these basics are roughly similar, motorcycle insurance departs from insuring a car in other, important ways. These can affect the cost of a policy and the protection it offers. Here's a rundown of some key differences and what they may mean to you.

Policies generally cost less

Generally, you'll pay less to insure a motorcycle than a car. One big reason why is the lower propensity for motorcycles to injure other people or damage their property. That reality makes liability coverage generally less costly for two-wheeled vehicles. (Of course, one counterpoint to that is the injury record for motorcycles. Motorcycle riders and passengers are five times more likely to be injured in accidents than people in cars, according to the National Highway Traffic Safety Administration.)

The lower value of motorcycles compared with cars also helps keep premiums down. While it's possible to pay as much for a motorbike as for an automobile, the average bike in 2024 was only a quarter as expensive as the average car: $12,000 compared with $48,000. That lower value reduces the cost of many claims under the collision and comprehensive components of motorcycle insurance.

You must look into coverage for your passengers

When insuring a car, mandatory bodily injury liability coverage may cover costs like medical expenses, lost wages, and pain and suffering if your passengers are hurt in an accident.

With motorcycle insurance, by contrast, passenger coverage isn't always a given. Depending on where you live, your required liability coverage might extend to your passengers. But that's not standard coverage like it is with car insurance. It's also possible that your passengers who are injured in an accident where another driver is at fault will be fully compensated for their injuries from that driver's insurance (assuming you don't live in a no-fault state).

The odds are you'll have to pay extra for passenger protection. There are two options: You can buy personal injury protection (PIP) coverage, which pays for medical expenses and lost wages for you and your passengers up to a certain limit, regardless of who caused the accident.

The other option is medical payments coverage, or "MedPay." This type of coverage is more limited in scope than PIP, including medical bills but likely not lost wages or other expenses.

However, it's important to note that not all states offer PIP or MedPay coverage. If your insurer doesn't offer these options when you're shopping for a policy, you should ask about this coverage, which is recommended even if you only ride with a passenger occasionally.

Accessories coverage can be especially important

Compared to a car, there's more opportunity — and, for many, more appeal — to personalizing a factory-equipped motorcycle with modifications like custom graphics, seats, wheels and exhaust systems. If such a tricked-out bike is in your garage or on your bucket list, it's important to review what's covered under the standard terms of your insurance policy so you can add any coverage that's needed to protect your investment.

While some motorcycle insurance policies, especially ones that include collision and comprehensive components, include custom parts or equipment (CPE) coverage, it's not always a given. You may find it worthwhile to purchase a special CPE add-on. This additional protection may also be a good idea if the types of accessories or value of the CPE coverage that comes standard with your policy falls short of what you'd need if you have to repair, restore or replace your modifications.

You also need to consider the possibility of theft or damage to your motorcycle helmet, especially if you have one of the high-end models that can cost up to $1,000. If your helmet is stolen from or damaged in your home, for example, it may be covered under your homeowners insurance, subject to your deductible of course. But if it's damaged while you're on the road or storing the helmet on your parked bike, your homeowners insurance may not provide coverage for it. To fully protect the helmet, you'll need to review the coverages under your motorcycle insurance policy, and purchase a CPE add-on as necessary.