Moped insurance: what is it?

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Moped insurance is an insurance policy designed to protect the owner of a moped against the risk of damage to or loss of the moped. Some jurisdictions require moped owners to carry insurance if they use their mopeds on public roads. In other places, moped insurance is optional. Policies can go as far as providing medical assistance to all injured parties in the event of a serious accident, or they can be as simple as insurance against theft or weather damage. Even where moped insurance is required, owners still have plenty of choice when it comes to building their insurance policies.

In many respects, a moped is little more than a low-horsepower motorcycle. Mopeds often resemble motorcycles, but cost less and typically have lower horsepower. The engine displacement on a moped is such that motorcycles can rarely exceed 50 miles (80 kilometers) per hour. While the moped design may resemble a motorcycle, a moped is not a type of motorcycle, and motorcycle insurance requirements do not generally apply to mopeds.

Moped drivers have different privileges depending on where they are. In some places, mopeds are permitted on any public road, while in others they are permitted on city roads, but not on motorways. Still others ban the operation of mopeds completely outside neighborhoods and back streets. Whether insurance is needed, and if so, what type of coverage a moped owner should purchase, depends in the first place on how the moped is permitted to be used.

Cities and local governments typically require insurance only for mopeds used on public roads. The goal of most insurance mandates is to protect the driver. If a moped driver were to cause an accident, the total damages he could cause, including both property and personal injury, could conceivably cost more than he could afford. An insurance policy would ensure that all injured parties are able to recover their damages, while protecting the guilty driver from bankruptcy or serious financial obligations.

Most of the time, insurance requirements are matched with licensing requirements. In these jurisdictions, moped owners must formally register their vehicle, obtain a license plate, and pay the required government licensing fees. Proof of insurance is usually required at the same time.

If a moped is not ridden on city streets or if moped insurance is not required, a moped owner may choose not to purchase an extensive medical or accident coverage policy. The likelihood of a moped being involved in a multi-car crash is significantly reduced when the moped is the only vehicle on the road. Moped damage and replacement coverage, however, is almost universally desired.
Mopeds are small vehicles and as such even a minor accident can cause significant damage. The damage could, in many circumstances, cost more to repair than the moped is worth. Even a basic casualty policy will protect a moped owner from this type of loss. Many moped insurance plans also protect moped owners from environmental damage, such as rust, flooding, or unseasonably cold temperatures. Most policies also indemnify homeowners against theft or vandalism.

Beyond what is required by law, how far your moped coverage is is largely a matter of choice. The cost of moped insurance varies based on a number of factors, including location, age of the driver, and driving history. Discounts are usually available for good and most insured drivers. Some insurance companies also offer low-rate incentives for mopeds who qualify as “super economy vehicles” and others offer discounts for moped drivers who have taken an approved moped safety course. Most companies that offer vehicle insurance also offer moped insurance, and policy cover materials are usually easy to get hold of.

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