• Colorado Insurance Requirements for Motorcycles

You must carry the following amounts of liability insurance:

  • $25,000―per person for bodily injury
  • $50,000―per accident for bodily injury
  • $15,000―per accident for property damage

Be sure to scout different quotes from different carriers before deciding on a policy―it could save you a lot of money. And keep in mind that you do have the option to maximize your protection with additional types of coverage.

NOTE: As of 2009, you must carry med-pay coverage (pays $5,000 in medical expenses following an accident). Depending on your carrier, you might see a small spike in your premiums. You do, however, have the right to refuse. You can do this by submitting a letter of refusal to your insurance carrier.

  • How Underinsured Motorcycle Coverage Works

If you had underinsured motorcycle insurance on your policy, it would eliminate the gap between what the guilty driver could pay and the amount you owe. That’s what this coverage does: It fills the hole between an underinsured driver’s liability limits and the costs incurred by you from an accident.

Without this protection, you’d be stuck paying for the extra expenses. Of course, you could sue the other driver. However, collecting from a successful lawsuit can be difficult, and legal action can drain your time and energy.

Types of Underinsured Motorbike Insurance

Most motorcycle insurers split their underinsured coverage into two categories:

  • Bodily Injury Pays for your hospital bills, doctor’s visits, prescription drugs, physical therapy, home-health care, lost wages, and related expenses.
  • Property Damage: Covers the cost to repair or replace your property, such as your motorcycle.

Underinsured Motorcycle Insurance Limits

In the example mentioned above, your underinsured driver coverage would pay your remaining expenses―but only up to the limits of your policy.

So, how much underinsured protection do you need?

You’ll have to comply with your state’s underinsured driver insurance requirements, for starters. That’s assuming your state has any requirements about this; most states don’t have any guidelines concerning this coverage.

But, beyond that, it’s wise to consult with an insurance agent or other qualified financial professional to determine what’s an appropriate amount for you to carry. Regardless, you should have more uninsured motorcycle coverage than the minimum limits prescribed by the states, as these limits are inadequate in most cases.

  • Any carrier that provides insurance coverage for motorcyclists should offer underinsured protection.

The good news? Relatively speaking, underinsured motorist coverage is inexpensive.