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Q

Am I required to carry comprehensive and collision insurance if I have a lien on a motorcycle?


A

Yes, if your lienholder says you must carry full coverage, then you must have Collision and Comprehensive insurance coverage on the motorcycle.

When you own a car or motorcycle without a lienholder, you can place whatever type of insurance you want on it, as long as it satisfies your state's minimum insurance requirements. However, when you have a loan with a finance company, or a lienholder of another kind, they can stipulate what types of coverages you must carry on that vehicle, since it is their asset until you pay off in full.

Any lienholder on a motorcycle, or another type of vehicle, will normally require physical damage coverage of Collision and Comprehensive because they are what protect the bike if it is damaged.

  • Collision pays if the motorcycle is damaged due to an accident where it hits, or is hit by, another vehicle, or other object.
  • Comprehensive pays if the motorcycle has losses resulting from incidents other than collision, such as if it is stolen or damaged by flood, fire, or animals.

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Both coverages pay regardless of fault and minus the deductible you chose at the inception of your policy.

You should read through your lien (loan) paperwork on your bike to find what exact insurance your lienholder requires you to carry. You then can get a low cost motorcycle insurance quote for Liability only or full coverage, whatever you need.   

CarInsurance.com can also help you with your car insurance needs. We offer multiple company insurance rates for personal auto insurance and the ability to purchase from one place. Get instant car insurance quotes and then purchase your policy online with us.


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