How Canadian Motorcycle Insurance Works

Motorcycles are popular in Canada. In fact, hundreds of thousands of people are attracted to motorcycling annually. However, everyone knows that driving a motorcycle is more prone to accidents than driving a car. Therefore, before they can drive their machines around, motorcyclists are required to purchase some sort of motorcycle insurance.

Motorcycle insurance works like car insurance. A basic, minimum coverage amount is paid to the insurance company. Once it is paid, the person can then customize is policy to suit his needs.

The mandatory accident benefits in motorcycle insurance policies provide coverage for the motorcyclist, the passenger and the pedestrian when these people are killed or hurt in an accident. Generally, these include medical expenses that are not covered by a medical, surgical, dental or hospital plan. Aside from medical expenses, standard accident benefits also provide funeral expenses to those who are killed in the accident, disability income to the insured, and payments after the death of an insured person.

The accident benefits coverage varies in each Canadian province. For example, they required in all provinces but not in Newfoundland. In Quebec, the government provides this kind of coverage.

Aside from accident benefits, some provinces require other types of mandatory coverage. In Ontario, for example, motorcyclists are required to purchase direct-compensation property damage as part of their motorcycle insurance policy. This provides coverage for damage to the motorcyclist's bike and any property in the motorcycle.

Once the basic requirements are purchased, motorcyclists can then choose to customize their motorcycle insurance policy. An example of these optional benefits includes collision coverage which pays to fix or replace the bike after it suffers collision damage.

Motorcyclists can also purchase comprehensive coverage. The coverage is in motion when the motorcycle is not involved in an accident but needs to be fixed due to theft, fire or vandalism.

Another option is to purchase a special peril coverage benefit. This type of coverage covers the damage done to the motorcycle for a specific hazard that is included in the policy. For example, the rider might choose coverage for damage due to lightning, windstorms, earthquake, explosions or even riots.

After buying a motorcycle insurance policy, the motorcyclist gets a Canadian Inter Province Motor Vehicle Liability Insurance Card. This card must be shown when a police officer asks for it, when the motorcycle is registered and during the renewal of the license plate sticker. The insurance is valid in Canada and United States but not in Mexico.

Motorcycle insurance is an important thing. Be sure to have it if you plan to buy a motorcycle.