Everything You Didn’t Know but Wanted To Ask About Insurance by Vehicle

December 13, 2023


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When purchasing or leasing a vehicle, it’s crucial to remember that this kind of investment requires some form of protection. So, what you need is to pinpoint the right insurance options and compare rates. One of the options is to sort available insurance by vehicle make and model and contact your provider for more details.

Based on research from Fact.MR, in 2022, the global auto insurance market was estimated at $817 billion. It is projected to grow at a compound growth rate of 7.1% to reach $1,616.2 billion by 2032. This highlights the continued significance of car insurance in the future. In this article, we will explore the various types of insurance available and how car insurance rates by vehicle are formed.

Motorcycle Insurance

For those fortunate enough to possess an auto insurance policy, it’s essential to note that it doesn’t extend coverage to insurance claims related to motorcycle operations. If you’re a motorcycle enthusiast, add your bike to the existing policy to ensure that the insurance company will provide compensation per the indicated terms and conditions. Let’s delve into the specific types of insurance accessible to motorcycle owners.

Liability Insurance

This amount includes compensation for property damage and bodily injury you may cause to other people involved in the accident. In this case, the insurance does not include your injuries or damage to your motorcycle. However, the liability of a passenger who was on your motorcycle at the time of the accident may protect you, too, if required by vehicle insurance requirements by state. 

Motorcycle Collision Insurance

In this scenario, insurance addresses damage to your motorcycle resulting from a collision with another vehicle. The insurance company covers the damage — equivalent to the motorcycle’s book value before the accident — while factoring in the deductible amount.

Comprehensive Insurance

This type of insurance covers damage caused by events other than a collision, e.g., vandalism, fire, or theft. As with collision insurance, in this situation, your insurance covers the motorcycle’s book value with a deductible upfront.

Reimbursement of the Value of Individual Vehicle Parts

Insurance packages generally cover the cost of standard factory parts of the motorcycle. To add additional items to the list of coverage in the form of a sidecar or trailer, chrome parts, or custom painting, it is worth consulting with the insurance company to find out the average insurance cost by vehicle.

Uninsured/Underinsured Motorist (UM/UIM) Coverage

Refers to coverage for damage to you or your property caused by another uninsured or underinsured driver. UM/UIM policies cover medical expenses, lost wages, or property damage in certain situations.

The main factors affecting insurance cost by vehicle are:

  • Driver’s age, residence, and driving record
  • Type of motorcycle: cruiser, custom, or sport bike
  • The age of the vehicle
  • Annual number of miles traveled
  • The location where the motorcycle is stored

By exploring insurance rates by vehicle in more detail, you can choose the most reasonable option and save a lot of money.

ATV Insurance

An all-terrain vehicle or ATV insurance is similar in many ways to motorcycle insurance but has some nuances. Although there may be different vehicle insurance requirements by state, you must still purchase an insurance policy when riding on public roads. Some states require you to have insurance on the vehicle you are driving, even if you don’t own it.

As with motorcycles, if your policy includes comprehensive and collision insurance for your ATV, the final cost will be more expensive.

The average insurance cost by vehicle indicates ATVs cost significantly less to insure than motorcycles. However, a motorcycle policy can include ATV insurance as well.

RV Insurance

RV insurance can be categorized into two main types: full-time and part-time.

Full-time RV insurance is suitable for those motorhome owners who use it as a permanent residence. To be more specific, it is considered a permanent residence if they live in a travel trailer or motorhome for at least 6 months a year. Such a policy includes: 

  • Collision and comprehensive coverage
  • Personal liability protection for damage and bodily injury to others
  • Medical payments in the event of an accident
  • Property damage

Part-time RV insurance is for people who do not use the motorhome as a permanent residence and is called recreational RV insurance.

This policy includes vacation liability insurance that covers compensation for injuries and damages in or around the motorhome for short trips.

Generally, motorhome insurance involves the same types of coverage as car insurance rates by vehicle.

How To Calculate How Much Vehicle Insurance Coverage You Need

To calculate average car insurance rates by vehicle, you need to consider the following nuances:

  1. In most states, liability insurance is required, but vehicle insurance rates by state may vary.
  2. Depending on where you live, additional types of insurance rates by vehicle may be required. For example, medical payments and personal injury insurance, as well as uninsured motorist coverage.
  3. Collision and comprehensive insurance are a must for every driver.
  4. Comparing average car insurance rates by vehicle from at least three insurance companies will help you find the best policy.

For insurance rates by vehicle comparison to be as objective as possible, you should define the main parameters: 

  1. Coverage: Determine the criteria that are important to you and analyze several offers from different companies.
  2. Insurance limitations: There are minimum policy amounts, but using a special calculator on the websites of insurance companies will help determine the final cost.
  3. Excess: Depending on the insurance, you should calculate how much you can pay to repair your car. As a rule, the higher the deductible amount, the lower the policy price.

By considering these factors and making an insurance rate comparison by vehicle, you will not only be able to find a favorable option but also save a lot of money.

Getting a vehicle Insurance Quote

When seeking advice on policy prices, remember that you must present the following information:

  • A valid driver’s license
  • The physical address of your vehicle
  • Vehicle Identification Number (VIN)

Based on this information, you will be given comprehensive information about the types of insurance coverages, including average auto insurance rates by vehicle type and area. As a result, you will get a personalized rate that meets your requirements and wishes!

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Victoria Berezhetska

Victoria Berezhetska is a Content Lead at Phonexa.com and an expert contributor to CoverExplore. She has a Bachelor of Science degree in Business Administration, with extensive working experience as a PR specialist and content writer. At CoverExplore, she helps customers find the right educational material through easily digestible blog posts and buying guides backing their insurance coverage choice. Victoria covers diverse topics around digital and insurance marketing, including auto, home, health, and life insurance.

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