Borrowing or lending a motorcycle: who is covered if there's a crash

When you let someone ride your motorcycle with your okay, insurers call that permissive use. Many policies extend some coverage to that person, but the details vary by insurer and by state.

What insurers say

Harley-Davidson Insurance, one motorcycle insurer, says a permissive operator may be covered when riding with the owner’s permission [1]. It adds that the insurer decides how far coverage goes based on the rider’s status [1]. One insurance agency’s blog says that riders with permission are typically covered [4].

How often the person rides also matters. Insuranceopedia, an insurance information site, says permissive use usually means you clearly said yes and the rider is licensed for motorcycles [2]. It also means the rider uses the bike only now and then [2]. After a claim, the site notes, insurers look at how often the person rode the bike [2].

Whose policy pays first

In many cases, the bike’s own policy is the first place to look. A Utah attorney, in an undated video on Utah law for vehicles in general, says the insurance on the borrowed vehicle is primary [8]. In his account, that policy must pay at least its liability coverage and its personal injury protection (PIP) [8]. PIP pays your own medical bills and some lost wages no matter who caused the crash.

Harley-Davidson Insurance says the facts of each crash decide which policy is primary and which is secondary [1]. Secondary, or excess, coverage pays only after the first policy reaches its limits.

Your limits, your risk

When a friend rides your bike, the friend uses your liability limits. If the crash costs more than those limits, money can come out of your pocket. Harley-Davidson Insurance warns that if the rider has no motorcycle insurance, the owner can be liable for damages above the policy limit [1].

State rules vary. We checked only two states. North Carolina’s insurance department has a guide to motorcycle insurance. It says liability coverage protects you, family members and anyone who rides your bike with permission [9]. In New York, the state insurance department’s lawyers said in 2008 that an owner’s policy generally covers a licensed driver who has permission [10]. They cited state Insurance Law section 3420(e) [10]. They added that under Vehicle and Traffic Law section 388, the owner also answers for that driver’s negligence [10]. The opinion did not discuss motorcycles and is over 15 years old, so check current law.