Consider the Following

• In Montana, the “at-fault” driver is responsible for damages in an accident
• Without insurance, you could be left paying substantial out-of-pocket costs for medical bills, property damage, or legal claims if you’re found at fault in an accident

Other Considerations:

Uninsured/underinsured motorist coverage can protect you if you’re hit by a driver who lacks sufficient insurance

Peace of Mind: Motorcycle insurance ensures you’re protected against theft, vandalism, or natural disasters like hailstorms

Customizable Coverage Options: From liability to comprehensive and collision coverage, you can tailor your policy to fit your riding habits and budget

Local Agent: Our agency understands the unique needs of Montana riders and offers policies designed specifically for the challenges facing Miles City residents

• Some motorcycles are so unique or specialized that they may only qualify for liability coverage, examples include:
  • State-assigned VIN
  • Specially constructed or assembled motorcycles, including but not limited to:
    • Non-factory built,
    • Built from a kit, or
    • Has an after-market frame
  • Motorcycles, mopeds, and scooters not listed in the Kelley Blue Book or N.A.D.A. Appraisal Guide may only qualify for liability coverage

Certain motorcycles, including limited production models and those 25 years or older, may qualify for collision and comprehensive coverage but often require special review and lower limits

When settling a motorcycle insurance claim, insurers generally use one of three methods, each providing varying levels of compensation depending on the motorcycle’s condition and the policy’s terms

• The three primary loss settlement methods are:
  • Replacement Value Cost: The amount it would take to replace a damaged or stolen motorcycle with a new one of similar make and model, without considering depreciation
  • Actual Cash Value: Reflects the current market value of the vehicle at the time of loss, taking into account factors like age, wear and tear, and mileage
  • Agreed Value: A fixed amount determined and agreed upon by both the policyholder and the insurer at the start of the policy

Loss Settlement Methods in Action

To better understand how these loss settlement methods work in practice, let’s explore each option in more detail

Replacement Value Cost (RCV)

Depending on the insurance company, RCV generally provides policyholders with a payout equal to the Manufacturer’s Suggested Retail Price (MSRP) of a current model year motorcycle of the same make and model in the event of a total loss

• There will likely be some restrictions:
  • Availability: Motorcycles that are new or used and not more than one model year old at the time of purchase
  • Renewal: Only if, the motorcycle’s model year is no more than two years older than the calendar year of the renewal’s effective date

Actual Cash Value (ACV)

Actual Cash Value (ACV) is the most common method used by insurance companies to settle motorcycle claims

The payout is based on the motorcycle’s fair market value at the time of the loss, accounting for depreciation due to age, wear and tear, and mileage

For motorcycles with resale values listed in resources like the N.A.D.A. Appraisal Guide or Kelley Blue Book, ACV provides a realistic valuation

• Under an ACV settlement, the insurer’s liability is limited to the lowest of three amounts:
  • The actual cash value of the motorcycle at the time of loss
  • The cost required to replace the stolen or damaged property
  • The cost necessary to repair the motorcycle to its pre-loss condition

While practical and widely applicable, ACV often results in lower payouts compared to other methods because it factors in depreciation

Agreed Value

This method is designed for motorcycles that lack resale values in standard appraisal guides like the N.A.D.A. Appraisal Guide or Kelley Blue Book, as well as motorcycles 25 years or older

It allows the insured and the insurer to agree on a fixed value for the motorcycle at the start of the policy, ensuring that the payout in the event of a total loss is based on this pre-determined amount

• Important components generally include:
  • Inspection Requirements: Insurers may require an inspection to verify the motorcycle’s condition and value. This often involves submitting photos, titles, or appraisals.
  • Coverage Limits: The maximum insurable value for motorcycles under Agreed Value is typically capped at $50,000.
  • The payout for physical damage losses is limited to the lower of:
    • The agreed-upon value
    • The market value at the time of application
    • The cost to repair or replace the motorcycle

Inspection Requirements

Given the specialized nature of many motorcycles, insurance companies may require an underwriting inspection to accurately assess the motorcycle’s value and condition before finalizing coverage

For some motorcycles, the insurer may instead require the agent to maintain specific documentation on file, such as photos of both sides of the motorcycle and a copy of the title

When an inspection is required, it is typically arranged by the insurance company through a third-party service and is generally completed within 21 days of the policy’s inception

Liability Coverage

Liability Insurance coverage is protection against claims resulting from injuries and damage to other people or property for which you have been found responsible

In Montana, motorcycle liability insurance is optional, but if purchased, it must meet the state’s minimum liability requirements as outlined in MCA 61-6-103

• These minimums include split limits of:
  • $25,000 for bodily injury per person: Covers medical expenses for injuries caused to one individual in an accident
  • $50,000 for bodily injury per accident: Covers medical expenses for multiple individuals injured in a single accident
  • $20,000 for property damage per accident: Covers repair or replacement costs for damaged property, such as vehicles or structures

• Generally liability coverage:
  • Includes legal defense,
  • Offers limits up to $500,000/$500,000/$100,000,
  • If purchased, Uninsured/Underinsured Motorist (UM/UIM) coverage must be offered in accordance with Montana law
  • UM/UIM limits must meet or exceed the state’s minimum liability requirements

Uninsured/Underinsured

The benefit of UM/UIM coverage is that it provides financial protection for medical bills, lost wages, and other injury-related expenses in accidents involving drivers with insufficient or no insurance

Property damage is not included under this coverage

• In Montana, hit-and-run accidents are typically considered under uninsured motorist coverage, not collision insurance:
  • Uninsured motorist (UM) coverage is designed to protect you when the at-fault driver is unknown or lacks insurance
  • UM coverage typically provides benefits for medical expenses, lost wages, and other injury-related losses resulting from hit-and-run accidents
  • In hit-and-run cases, where the at-fault driver’s identity is unknown, victims often need to rely on their own insurance coverage, such as UM, to handle expenses

Full Coverage

“Full coverage” provides a more comprehensive shield for your motorcycle which typically includes two components: collision and comprehensive coverage

Collision Coverage

• Collision coverage is insurance that helps pay to repair or replace your motorcycle if it’s damaged in an accident, regardless of fault which includes:
  • Collisions with other vehicles
  • Crashing into stationary objects like trees, fences, or guardrails
  • Damage from roadbed collisions (e.g., dropping your bike)

Comprehensive Coverage

• Comprehensive insurance is a type of coverage that protects your bike from non-collision-related damages, such as:
  • Theft,
  • Vandalism,
  • Weather events, and
  • Collisions with animals

Add-on Coverages

Medical payments coverage (MedPay): This is an optional coverage that helps pay for medical expenses resulting from a motorcycle accident, regardless of who is at fault

MedPay covers both the motorcycle rider and any passengers, providing financial protection for immediate medical needs following an accident

Other Add-on Coverages

• Safety Riding Apparel Coverage: Some policies may provide protection for helmets, eyewear, gloves, jackets, leathers, and boots in the event of a covered loss
  • Additional coverage of up to $3,000 may be available
• Contents Coverage: Pays to replace hunting, camping, touring, or similar gear that is damaged, destroyed, or stolen while being transported on your motorcycle as a result of a covered loss
• Enhanced Injury Protection: When available, provides coverage for a portion of income loss and offers a death benefit in the event of a covered accident
• Disappearing Deductibles: Some policies allow for a deductible to be reduced after each claim-free policy period.
• Accessory Coverage: This coverage provides protection for custom upgrades to your bike after purchase
• Transport Trailer Coverage: This provides protection for a trailer specifically designed to transport your motorcycle.
• Roadside Assistance: Some policies offer 24 hours a day, 7 days a week
• Trip Interruption Coverage: Reimburses for lodging, alternative transportation, and meals if your motorcycle experiences a mechanical breakdown or covered loss more than 100 miles from home and requires repairs
• Motorcycle Rental Coverage: Coverages from your existing motorcycle insurance policy transfer to a rental or loaner motorcycle

Full coverage options like collision and comprehensive insurance safeguard your bike

Add-ons such as safety apparel and accessory coverage enhance protection

So, when considering if motorcycle insurance is right for you, ask yourself: What would it mean for you to ride confidently, knowing you’re protected against accidents, medical expenses, and damage to your motorcycle?

Want to explore your options? 

Call: (406) 416-1096

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