Motorcycle Rental Insurance: How Does It Work?

Sep 1, 2024

Motorcycle rental insurance protects the renter from financial losses due to damages or liability issues during the rental period. 

Here's how it typically works across motorcycle rental companies:

• Coverage Options: The rental company usually offers various insurance options when you rent a motorcycle. These can include liability insurance, which covers damage to other vehicles or property and injuries to others if you're at fault in an accident. There might also be comprehensive and collision coverage, protecting the rental motorcycle from damage due to accidents, theft, or vandalism.
• Choosing a Plan: Renters can select from different levels of coverage depending on their needs and the rental company's requirements. Some companies require renters to choose at least a basic level of insurance, while others may provide some coverage as part of the rental fee.
• Primary vs. Secondary Coverage: Motorcycle rental insurance can act as primary or secondary coverage. If it's primary, it is the first to cover any damages or liability. If it's secondary, it only kicks in after other applicable insurance policies (like the renter's personal motorcycle or auto insurance) have been used.
• During the Rental: The insurance typically covers the renter from when they take possession of the motorcycle until it is returned. This period is defined in the rental agreement.
• Claims: In case of an accident or damage, the renter would follow the procedure outlined by the rental company to file a claim. This often involves a police report for significant damages or theft and communication with the rental company to assess the damages and determine the coverage.
• Deductibles and Limits: Like regular insurance, rental insurance may have deductibles (the amount you pay out of pocket before coverage starts) and limits (the maximum amount the insurance will pay).

Understanding these components can help renters make informed decisions about the level of insurance they need to ensure they are adequately covered during the rental period.

Motorcycle Rental Insurance at Riders Share

When you rent a motorcycle from Riders Share, it's important to know about your responsibilities and the insurance options available to you.

Your Responsibilities

As a renter, you are primarily responsible for:

• Damage Costs: Any damage during your rental period, whether from an accident or other causes.

• Reporting Theft: If the motorcycle is stolen, you must file a police report and submit it with your claim.

• Deposits for Insurance: Depending on your chosen insurance plan, you might need to pay a deposit ranging from $00 to $2,000. This amount covers potential damages and is refundable if the damage costs less than the deposit.

What Your Insurance Covers

Riders Share offers insurance that covers:

• Damages include accidents, theft, and severe damage from disasters like fires or

floods.

• Third-Party Liability: If you get into an accident that results in damage to a third party, we provide state minimum liability coverage requirements
• Exclusions: The insurance doesn’t cover personal items left on the motorcycle, illegal activities, or damage from off-road riding.

What’s Not Covered

• Personal Items: The insurance does not cover any personal belongings on the

motorcycle.

• Personal Protection: If you are injured, make sure you have your own health insurance or travel insurance because damage waivers do not cover injuries.
• High-Risk Activities: The insurance does not cover damages from risky or illegal activities like stunt riding, race track use, or riding a motorcycle on unpaved roads.
• Wear and Tear: Normal wear and tear from motorcycle use is not covered. This means small scratches or engine wear from regular use won’t be paid for by the insurance.

Damage Waiver Options for Renters

At Riders Share, we offer three different damage waiver options for renters during your rental period. 

• Minimum
• Standard
• Premium

Alternatively, you can bring your own motorcycle insurance if it includes comprehensive and collision. To do so, email support@riders-share.com the declarations page of your motorcycle insurance policy.

Damage waivers are a daily cost in addition to your rental, and are calculated based on multiple different factors, including the cost of your rental. 

The less coverage, the less daily cost. 

With that said, the less coverage you have, the bigger the security deposit. This gets refunded if there are no damages!

Here is an example of motorcycle rental insurance on Riders Share.

Rental Companies Are Not Insurance Companies

Motorcycle rental companies typically provide protection plans and coverage options for renters, but it's important to understand that we are not insurance companies, brokers, or agents. We facilitate access to insurance-like products underwritten by third-party insurers, like Protection Plans and Damage Waivers. 

While we can offer certain protections during the rental period, we do not underwrite or bear the risk associated with the insurance policies. Renters should carefully review the coverage details provided by your rental company.

But What If I Don’t Own A Motorcycle? Why Would I Have Insurance? 

Well, you likely wouldn’t have insurance if you didn’t own a motorcycle. And that is okay. 

If you want to rent a motorcycle but do not have your own personal motorcycle insurance, you are still covered during your rental period as long as you select a Damage Waiver option (motorcycle rental insurance). 

How is Motorcycle Rental Insurance Different From Car Rental Insurance? 

In a nutshell, personal car insurance may cover rental cars, but personal motorcycle insurance typically does not cover motorcycle rentals. You usually need to buy separate rental insurance for motorcycles. It’s important to note that insurance companies often do not include peer-to-peer companies (Riders Share, Twisted Road, Turo) in coverage. 

What's Similar

Both types of insurance typically offer:

• Liability Coverage: This helps pay for damage or injuries you might cause to others.
• Collision Coverage: Covers damages to the vehicle (motorcycle or car) if you have an accident.

What's Different

• Risk Level: Motorcycles are generally considered riskier than cars because they are more exposed and less stable. This means motorcycle insurance might cost more or have different terms.
• Personal Protection: Motorcycle insurance often includes more options for personal injury protection because riders are more vulnerable to injuries. However, this is not the case for motorcycle rentals.
• Coverage Specifics: Motorcycle insurance might have more specific rules, like wearing helmets or having a certain type of license, which aren’t as common in car rental insurance.
• Size and Value: Motorcycles are usually cheaper and smaller than cars, which can affect the cost of insurance and the amount of coverage needed.

Bottom Line

Understanding how motorcycle rental insurance works is important for anyone renting a motorcycle. It provides financial protection against damages and liabilities during the rental period. 

By choosing the right insurance plan from a company like Riders Share, you can ensure that you are covered for potential damages and liabilities, making your rental experience worry-free. Whether you own a motorcycle or not, selecting the appropriate coverage is crucial to protect yourself from unexpected costs and to enjoy your ride fully. 

Remember, while rental companies offer insurance-like products, they are not insurance companies, so always review the coverage details thoroughly.