RIDER INSURANCE: Meaning, Types & Factors

Riders too are eligible for insurance irrespective of what they are riding, be it a horse, bicycle, or motorcycle. What do you understand about the term “rider insurance”? When you hear the name rider insurance, what is the first thing that comes to your mind? Hold that thought, because you’re about to find out the meaning, types, and factors affecting motorcycle rider insurance. Come along!

What’s Insurance?

Insurance protects you from financial loss. Insurance is a contract agreement between an insured and an insurance company in case of any loss in the future. An entity that provides insurance is known as an insurer or insurance company, A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured.

Policyholder and insured are often used but are not necessarily synonyms, as coverage can sometimes extend to additional insureds who did not buy the insurance. The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of payment to the insurer (a premium) in exchange for the insurer’s promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms.

What is Rider Insurance?

Rider Insurance is an insurance company. It was created in 1971 by a motorcycle enthusiast, Harry Blewise, with the dedication of a rider. It was founded by a motorcycle enthusiast and has been committed to protecting fellow riders for nearly 50 years.

People may have different perspectives when they see the word “rider insurance.” But according to insurance, rider insurance is an extra benefit or additional document added or attached to a life insurance policy at an extra cost. Adding a rider to an insurance policy comes at an extra cost, though the premium paid is low. Items commonly customized with riders include jewelry, vehicles, cameras, firearms, collections, and other notable possessions. You can only buy or add a rider to an existing insurance contract.

What can Rider Insurance be used for?

It is mostly used to customize insurance policies.
It makes the insurance policy less expensive.
It adds more benefits to insurance.
They offer extra coverage, which can be helpful in times of financial crisis for instance the waiver of premium rider

Conditions to use Rider Insurance

You can issue a rider if you want to customize your insurance. You can add a rider when you want to amend an insurance policy.

Motorcycle Rider Insurance?

Motorcycle rider insurance is the type of insurance that covers damage if anything happens to you or your motorcycle. It covers damages made

To you
Your property
Accidents made to other people by you

Several companies offer motorcycle insurance, such as Markel, Safeco, Harley-Davidson, dairyland,usaa, foremost

Types of Motorcycle Rider Insurance

Like car insurance policies, there are many types of motorcycle insurance that you may need or want to add to your policy. These individual types of coverage include:

Liability insurance: This pays for damages caused by an accident that involves another party. It covers bodily and property damage that you may have caused to other people, though it doesn’t cover injury to you or damage to your motorcycle.
Collision coverage pays for damage caused due to a collision with another vehicle with your motorcycle.
Comprehensive coverage pays for damage caused in the event of bad weather or theft, the insurance covers the book value of the motorcycle.
Personal injury protection or medical payments, which cover your medical expenses regardless of fault,
Uninsured motorist coverage pays for accidents caused by an uninsured driver, it covers payment for the damage made to the property and medical services.
Customized parts coverage, which covers payment made by the purchase of certain motorcycle parts, such as sidecars, custom paint, helmet, and chrome wheel rims.

Several Factors May Affect your Motorcycle Insurance.

In the case of liability and guest insurance, if the accident is not caused by you.
If your motorcycle is faulty or you were drunk at the time of the accident.

You can learn more about applying for rider insurance here,

Types of Rider Insurance

There are different types of rider insurance you can pick from.

#1. Critical illness Rider

This type of rider insurance is required for a person diagnosed with any critical ailment, like cancer, heart attack, or brain tumor. Although some insurance companies may have different ideas about critical illness, it is advisable to meet with a consultant to understand the terms and conditions applied.

#2. Accidental Death Rider

When a policyholder dies as a result of an accident, the accidental death rider covers the expenses and pays them to the insured. The insurer pays double the amount to the insured’s family. It pays an additional amount of death benefit when the insured dies as a result of an accident. It is also called a “double indemnity rider.”

An accidental death rider is essential if you are the main breadwinner in your family so that your family can survive on the benefits it entails. When applying for an accidental death rider, read carefully and understand the conditions.

#3. Waiver of Premium Rider

A waiver is an official document that shows a person has been released from a condition, such as premiums. In this case, when the main breadwinner is unable to secure a job or meet up with demand due to an illness or disability, the rider ensures that the life insurance policy remains active even if the premiums cannot be paid due to an illness or disability.

#4. Family Income Benefit Rider

A family income benefit rider provides a steady flow of income to the insured family in a situation where the insured dies. This rider helps to reduce extra expenses. That is to say, the insured family will face fewer financial difficulties as the rider provides a monthly income.

#6. Child Term Rider

This rider provides a death benefit in case a child dies before a certain age. After the child reaches maturity, the term plan can be converted into permanent insurance with coverage up to five times the original amount without the need for medical exams.

#7. Long-Term Care (LTC) Rider

In the event the insured has to stay at a nursing home or receive home care, this rider offers monthly payments. Although long-term insurance can be bought individually, insurance companies also offer riders that take care of your long-term costs.

Difference Between Term Life Insurance and Whole Life Insurance?

Term life insurance provides a death benefit for a specific number of years and then expires if left unused, while whole life is a form of permanent insurance that lasts your entire life. Whole life also comes with a cash accumulation component, while term life does not. For these reasons, term premiums are less expensive.

Why you may not want riders on a life insurance policy?

Adding a rider to an insurance policy increases the premium or cost. Therefore, if you don’t need the benefit provided by a rider, then you could spend money without a cause.

Disclaimer

Many insurers might not allow you to change your insurance policy according to your individual needs, but riders can help customize coverage. Always ensure you read thoroughly to avoid costly mistakes. If there are terms or conditions you do not understand, be sure to consult an insurance advisor to explain.

SUMMARY

Riders are an additional benefit that you can add to an insurance policy at an extra cost. It can customize insurance policies. Motorcycle rider insurance covers the damage done to you or your bike. Common types of rider insurance include family income benefit rider, child term rider, critical illness rider, and waiver of premium rider

FAQs

What is a rider in an insurance policy?

A rider is an extra benefit that can be added to an insurance policy at an extra cost.

Can you add a rider to an existing life insurance policy?

yes, you can. In fact, you can only add a rider if you have an existing insurance policy.

How does a child rider works?

A child rider in an insurance policy gives a death benefit if a child dies before a specific age.