You’re considering a loan to pick up a new Harley or Honda in Asheville, NC, but you’re unsure if you need to get insurance. Here’s a quick rundown of what you need to know.
Who Needs Insurance for a Motorcycle?
In North Carolina, all motor vehicles require liability insurance. This protects you financially if you are found responsible for an accident with injuries or property damage because of your negligence. Your loan company will require you to have full coverage insurance on your new motorcycle to protect the investment.
How Much Insurance Do I Need?
Most loan companies will require you to have full coverage insurance with collision and comprehensive coverage. This will protect your motorcycle from theft, vandalism, fire, or weather damage and accidents. The amount of coverage you need will depend on the value of your bike. You can get an estimate from your Asheville Insurance Center representative.
Is There a Gap in My Insurance Coverage?
There will be a gap in your insurance coverage when financing your motorcycle until you pay the loan off. If your motorcycle is totaled in an accident or stolen, you will still pay the entire loan amount to the lender, even if your insurance only pays out a portion of it.
You can protect yourself from this by adding gap insurance to your motorcycle insurance policy. This will cover the gap between what you owe on your loan and what your insurance pays out in the event of a total loss.
What is Full Coverage Insurance?
Full coverage insurance goes beyond the minimum protections required by law. It includes collision and comprehensive coverage to help pay for repairs or replacement of your motorcycle if it’s damaged in an accident, stolen, or vandalized.
Speak with your local Asheville Insurance Center agent to learn more about what coverages are right for you.