Most motorcycle insurance companies offer a choice between comprehensive and third party insurance. Usually what is covered by comprehensive motorcycle insurance is the loss or damage of your bike. Generally you will receive one of three benefits if you have an accident: payment of repair charges, replacement of bike, or a cash settlement that equals the loss or damage of the motorcycle. Sometimes, if your bike is new, the company will replace it with a new one of the same make and specifications. When calculating a settlement, what is commonly deducted is an amount related to the wear on the bike and the approximate market value at the time. In addition, if you have the motorcycle under a hire-purchase or leasing agreement any settlement you might receive will be given to the owner of the bike. At the scene of an accident, if it is damaged enough that it cannot be ridden, insurance companies usually pay for the motorcycle to be protected and removed to the nearest repair shop and for delivery back to your address after the repairs are done. These companies also tend to reimburse you for any medical costs you may incur as a result of an accident if you are in need of emergency medical care. Also, if you have expenses due to legal liability, such as for death, bodily injury or damage to anyone else’s property, you can often receive payment for those expenses, as well as for any legal costs you might have. Some of the things that are usually not covered under comprehensive insurance includes: reduction in value, mechanical, computer or electrical failure, damage to tires by braking, loss of value after a repair and loss or damage to spare parts, among other things.