Do You Need Insurance for a Moped?

Mopeds. The appeal is real. Is it the awesome gas mileage? Minimal repairs? Easy parking? Or just that they look so freaking fun?

Whatever it is, the popularity of mopeds is exploding!

But along with that new popularity comes a new dilemma: Do you need insurance for a moped?

Well actually, yes, you do. Let’s go over why you need it and how much it costs.

What Does Moped Insurance Cover?

Because mopeds have gotten so popular, especially in urban areas, most insurance companies now offer insurance specifically for mopeds.

But just like car insurance and motorcycle insurance, insurance requirements and coverage limits for mopeds vary from state to state, from provider to provider, and even from driver to driver.

But generally speaking, here’s a breakdown of typical moped insurance coverage options:

• Liability for bodily injury - This will protect you financially if you hit a pedestrian or cyclist.
   
• Liability for property damage - Even though mopeds aren’t known for causing severe property damage, this type of coverage is wise to carry. (You never know what’s around the corner!)
   
• Collision coverage – Regardless of who’s at fault, collision coverage will help pay for damage to your moped.
   
• Comprehensive coverage – Comprehensive coverage protects you against vandalism, weather events, and accidents involving animals. (Tip: Hey, we all know squirrels sometimes pull the “deer in the headlights” trick. But try your best to avoid hitting an animal with your moped!)
   
• Uninsured or Underinsured Motorist – Uninsured and/or underinsured motorist coverage pays out if you get into an accident with an uninsured or underinsured driver.
   
• Medical payments (MedPay) – This will cover medical costs for everyone involved, regardless of who’s at fault.
   
• Additional options – Check with your insurance agent to find out what types of additional options (roadside assistance? trip interruption?) you can include on your policy.

Each of these coverage types has dollar amount options you can choose from. Be aware that the coverage amount you pick directly affects your premium—the higher the coverage, the higher your premium.

But remember that the purpose of insurance is to protect your financial assets. You want the same level of protection for your assets regardless of what you’re driving. So, don’t make the mistake of skimping on your coverage amounts just because your moped costs less than your car.

Do All States Require Moped Insurance?

Now that you have a general idea of what your coverage options are, let’s talk about state requirements.

While some states leave it up to you, other states do require moped insurance. The states that do require it base their requirement decisions on your location and/or the size and speed of your moped’s engine.

For example, if you live in New York and ride a fast moped (a class A moped that can go 30 to 40 mph), you’re required by state law to carry moped insurance.¹

Even if you live in a state where moped insurance is optional, we recommend that you at least carry minimum coverage. If you ever get into an accident (fingers crossed that never happens to you!), minimum liability insurance will help pay for medical costs and property damage/bodily injury to others, including your passengers.

Remember, too, that if you lease or finance your moped, your lender will most likely require insurance. (Side note: You should never lease or finance a moped or car or boat or whatever. Yeah, everybody does it. And everybody’s broke!)”

Your best bet is to talk to a local insurance agent who can tell you the moped insurance requirements for your situation.

How Much Does Moped Insurance Cost?

The good news is that moped insurance tends to be cheaper than traditional motorcycle insurance. This is mostly because mopeds have smaller engines than motorcycles and can’t travel as fast, limiting the amount of damage they can do to people and/or property.

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The cost of moped insurance depends on several factors, including:

• Model of moped and engine size
• Where you live
• Your age and driving record
• Mileage
• Years of driving experience
• Coverage you choose

Pinpointing a specific cost for moped insurance is tough because there are so many variables. But on average, moped insurance can cost anywhere from $35–125 monthly.

Get the Right Insurance and the Best Price

Like we mentioned, moped popularity is trending upward. Fast!

Don’t wait to connect with one of our Endorsed Local Providers (ELPs) who can tell you exactly what the moped insurance requirements are in your state, which insurance carrier offers the best coverage at the best cost, and what your coverage options are.

Find the best moped insurance broker near you today!