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Organized motorcycle rental services, such as EagleRider, and their easy motorcycle rental processes have caused many motorcyclists to be hasty when making decisions about rentals. When planning to rent a motorcycle, all they have on their minds are the vacation destination, the scenic roads along the way, and the motorcycle rentals best suited for the trip.
Most inexperienced renters tend to overlook important rental details such as the license and insurance requirements.
Even if they know the importance of having liability insurance to cover damages and injuries suffered, some renters avoid purchasing rental insurance because they find the processes and policies complex or don’t know what type of insurance they need.
This is common among renters who have motorcycle insurance but don’t know whether their personal insurance covers motorcycle rentals or not. This is also the case for non-U.S. residents planning to rent in the United States. What they fail to realize is that renting a motorcycle without insurance is a huge risk.
For your convenience, Viking Bags provides you with a complete guide to help you determine the type of insurance best suited to cover your motorcycle rental during your dream vacation.
1. What Exactly is Motorcycle Rental Insurance?
Motorcycle rental insurance is a form of insurance that offers financial protection for the owner of a motorcycle rental during the time it is borrowed. Motorcycle rental insurance offers stipulated finances in case the motorcycle rental is damaged or the renter is injured.
2. What are the Minimum Motorcycle Insurance Requirements in the Different U.S. States?
Except for Florida, all U.S. states require you to have a liability-only insurance policy to be eligible to ride a motorcycle. All motorcyclists are required to own minimum motorcycle insurance to cover property damages and injuries. The same rule applies to motorcycle rentals.
About 13 states require the following damage coverage and injury protection:
- Up to $50,000 for liability protection per accident
- At least $25,000 for injury liability coverage per person harmed in an accident
- At least $10,000 to cover property damages
California, Pennsylvania, Nevada, Louisiana, and Delaware have the least expensive minimum motorcycle insurance limits. Alaska, Maine, Utah, Texas, Minnesota, and Maryland have the most expensive minimum motorcycle insurance limits.
To find out the minimum required insurance limits of all states, you can review the chart below:
| STATE REQUIRED MINIMUM MOTORCYCLE RENTAL INSURANCE | |||
|---|---|---|---|
| State | Accident Liability Coverage (Two persons injured) |
Per Person Bodily Injury Liability Coverage | Property Damage Liability Coverage |
| Alabama | $50,000 | $25,000 | $25,000 |
| Alaska | $100,000 | $50,000 | $25,000 |
| Arizona | $30,000 | $15,000 | $10,000 |
| Arkansas | $50,000 | $25,000 | $25,000 |
| California | $30,000 | $15,000 | $5,000 |
| Connecticut | $40,000 | $20,000 | $10,000 |
| Colorado | $50,000 | $25,000 | $15,000 |
| Delaware | $30,000 | $15,000 | $10,000 |
| Florida | No Insurance Requirements | ||
| Georgia | $50,000 | $25,000 | $25,000 |
| Hawaii | $40,000 | $20,000 | $10,000 |
| Idaho | $50,000 | $25,000 | $15,000 |
| Indiana | $50,000 | $25,000 | $10,000 |
| Illinois | $50,000 | $25,000 | $20,000 |
| Iowa | $40,000 | $20,000 | $15,000 |
| Kentucky | $50,000 | $25,000 | $10,000 |
| Kansas | $50,000 | $25,000 | $10,000 |
| Louisiana | $30,000 | $15,000 | $25,000 |
| Maryland | $60,000 | $30,000 | $15,000 |
| Massachusetts | $40,000 | $20,000 | $5,000 |
| Maine | $100,000 | $50,000 | $25,000 |
| Minnesota | $60,000 | $30,000 | $10,000 |
| Mississippi | $50,000 | $25,000 | $25,000 |
| Michigan | $40,000 | $20,000 | $10,000 |
| Montana | $50,000 | $25,000 | $20,000 |
| Missouri | $50,000 | $25,000 | $10,000 |
| North Dakota | $50,000 | $25,000 | $25,000 |
| New Hampshire | $50,000 | $25,000 | $25,000 |
| New Mexico | $50,000 | $25,000 | $10,000 |
| New York | $50,000 | $25,000 | $10,000 |
| Nebraska | $50,000 | $25,000 | $25,000 |
| North Carolina | $60,000 | $30,000 | $25,000 |
| Nevada | $30,000 | $15,000 | $10,000 |
| Oklahoma | $50,000 | $25,000 | $25,000 |
| Oregon | $50,000 | $25,000 | $20,000 |
| Ohio | $50,000 | $25,000 | $25,000 |
| Pennsylvania | $30,000 | $15,000 | $5,000 |
| South Carolina | $50,000 | $25,000 | $25,000 |
| Rhode Island | $50,000 | $25,000 | $25,000 |
| South Dakota | $50,000 | $25,000 | $25,000 |
| Texas | $60,000 | $30,000 | $25,000 |
| Tennessee | $50,000 | $25,000 | $15,000 |
| Utah | $65,000 | $25,000 | $15,000 |
| Virginia | $50,000 | $25,000 | $20,000 |
| West Virginia | $50,000 | $25,000 | $25,000 |
| Vermont | $50,000 | $20,000 | $10,000 |
| Washington D.C | $50,000 | $25,000 | $10,000 |
| Washington | $50,000 | $25,000 | $10,000 |
| Wyoming | $50,000 | $25,000 | $20,000 |
| Wisconsin | $50,000 | $25,000 | $10,000 |
3. How Does Motorcycle Rental Insurance Work?
Contrary to popular belief, motorcycle rental insurance processes are simple. After you select your ride, pay the deposit, and sign the damage waiver agreement, you get to choose the type/level of insurance you prefer.
At this stage, you can seek comprehensive coverage from your motorcycle insurance providers, such as XInsurance, Progressive, All-State, and Harley Davidson Insurance, (if they provide).
Otherwise, the rental service you are borrowing a motorcycle from will be your only insurance provider. When you select the insurance plan, the daily rental rate for your motorcycle rental will increase.
When your insurance plan is in place, all that is left are a quick helmet fitting session and familiarize yourself with the motorcycle rental. Then, you can immediately hit the open road.
4. Cost of Motorcycle Rental Insurance
The cost of motorcycle rental insurance varies depending on the accident and insurance laws of the state you plan to rent your vehicle.
Other factors that may influence the cost of your motorcycle rental insurance are the rental service, the type of motorcycle, and the level of insurance coverage you’re willing to pay. Different levels of insurance coverage have different fixed daily rates, but they usually start at $25-$35 per day.
Just remember, for standard liability coverage, your rental service will not charge more than the state-required minimum liability coverage. But adding other insurance coverage will be more expensive.
5. Types of Motorcycle Rental Insurance
There are various types of motorcycle rental insurance to choose from, ranging from standard liability coverage to comprehensive coverage. An experienced rider can work with just liability coverage, but inexperienced riders should purchase several types of insurance.
5.1 Liability-Only Coverage
Being a minimum requirement, all rental companies, including EagleRider and Twisted Road, charge liability-only insurance along with your daily rate. Possessing liability-only insurance makes it legal for you to operate your motorcycle rental.
5.2 Supplemental Liability
The rate of motorcycle accidents is high in the United States, with an even higher rate of accident lawsuits. With supplemental liability, you get third-party liability coverage. If you damage someone else’s motorcycle or cause physical injury due to a collision, and they decide to file a lawsuit against you to recover damage costs, your supplemental liability coverage will protect you.
5.3 Collision & Comprehensive Coverage
In addition, you can purchase comprehensive and collision insurance coverage at a daily rate. Collision insurance covers damages due to a collision with a motorcycle or any other vehicle.
The comprehensive insurance policy provides protection in case your motorcycle rental or its parts are stolen or damaged in a fire, flood, or earthquake.
5.4 Personal Injury Insurance
Personal injury insurance covers medical expenses and non-medical losses due to an accident, regardless of whether you were at fault or not. Personal injury insurance covers the following:
- Medical bills
- Loss of employment
- Salary deductions
- Death
- Theft of safety gear
- Theft or damage to other belongings.
- Towing service/roadside assistance
5.5 Additional Bodily Injury Coverage
Injury insurance coverage is usually a standard part of insurance policies. However, if it is not included, you can purchase any of the following injury insurance coverage:
Third-Party Bodily Injury Liability
If your negligence caused bodily harm to another rider or passenger, this insurance will cover medical bills, provide compensation for unpaid medical leaves, pain caused by injuries, and death.
Guest Liability
If your passenger suffers injuries due to another rider’s fault, then this insurance will cover medical expenses.
Injury Due to Uninsured Rider
If you have suffered injuries because of an uninsured rider, then this liability insurance coverage will protect you and cover your medical expenses.
Injury Due to Underinsured Rider
If you have suffered injuries because of a rider with insufficient insurance, then this insurance policy will protect you.
5.6 Medical Coverage
Medical coverage is similar to bodily injury coverage, but the former tends to be more comprehensive. If you get into an accident, this insurance policy will cover all of your and your passenger’s medical expenses.
5.7 Temporary Rental Insurance
Renters can purchase temporary rental insurance for peace of mind, road assistance, protection in case of a collision, injuries sustained, and damage to the motorcycle. With temporary rental insurance, you have access to towing and repair services without additional costs, and the rental company may even offer you a replacement if your rental suffered a major breakdown.
By purchasing different insurance coverages, renters can customize a strong and affordable insurance plan that meets all their needs.
6. Insurance Policies of U.S. Rental Services
To provide a better understanding of motorcycle rental insurance, let’s look at the insurance policies of two of the most popular rental services in the United States.
6.1 EagleRider
Minimum Liability
Minimum liability covers property damages and bodily injuries based on the insurance limits of the state you are getting your rental from.
It also covers injuries and damages caused to the renter due to other riders.
Supplemental Liability
Charged at a daily rate of $25, EagleRider offers supplemental liability coverage at $300,000. If you damage someone else’s property or cause injury to another person, then this insurance coverage will pay for it.
Damage Waiver
Charged at a daily rate of $25, EagleRider offers complete damage coverage for the motorcycle rental.
Damage Deductibles:
The renter only needs to pay $2000; the rest would be paid for by the rental service.
Damage & Theft Waiver
Charged at a daily rate of $35, EagleRider offers damage and theft coverage.
Theft Deductibles:
The renter only needs to pay $5,000; the rest would be paid for by the rental service.
Vacation Protection W/ Damage & Theft Waiver
EagleRider also provides vacation protection along with a damage and theft waiver. If your rental suffers a mechanical breakdown and the repair takes longer than 12 hours, then the company will provide $100 per day to the renter and provide a refund.
All these insurance policies are subject to the terms and conditions of the Rental Agreement.
6.2 Riders Share
State-Required Liability
Renters automatically receive state-required liability coverage provided by Riders Share.
Standard Insurance
Riders Share provides liability coverage up to $300,000.
Comprehensive & Collision Insurance
Riders Share offers comprehensive and collision insurance up to $30,000, along with third-party liability coverage.
Other Policies
- Motorcycles are not covered during delivery and drop-off.
- Personal insurance is replaced with the Riders Share insurance as soon as the renter is in possession of the rental.
- Exact insurance charges will be disclosed at pick-up.
7. FAQS
7.1 Do All Personal Motorcycle Insurance Providers Cover Rentals?
Yes and no. Most personal motorcycle insurance providers, such as GEICO and Markel , do not include motorcycle rentals in insurance plans, except for rental reimbursements (rental coverage if your motorcycle is stolen or undergoing repairs). However, some insurance companies such as AllState and Progressive provide comprehensive rental insurance policies. Therefore, it is best to check with your insurance provider before renting a motorcycle.
7.2 Should You Buy Motorcycle Rental Insurance?
Yes. Motorcycle insurance can be customized to fulfill your needs by combining different coverage options. If you are a frequent renter, it is best to purchase a comprehensive insurance plan that covers almost every rental that you plan to ride in the future. Compared to the daily insurance rate offered by rental services, purchasing a comprehensive insurance plan will be more economical.
On the other hand, if you travel only once in a while, then there is no need to invest in a comprehensive insurance policy. You can purchase standard daily liability insurance from your rental service and add collision, damage, and comprehensive coverage to your rental insurance plan. This way, you will have sufficient insurance to meet state requirements.
7.3 Why Do Motorcycle Rental Companies Charge High Rental Insurance Rates?
Motorcycle rental companies offer insurance at a higher rate to cover the costs for damaged or stolen motorcycle rentals.
Another reason for the high rental insurance rates is to make up for the expenses spent to buy premium commercial insurance from insurance carriers for their fleets.
8. Takeaway
After reading this guide, you are hopefully more comfortable with the idea of purchasing motorcycle insurance if you are planning to rent your next ride. Have a safe and enjoyable ride!
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