Motorcycle Insurance Articles
3 Ways Motorcycle Insurance Plans Can Cover Parts And Accessories
2010-11-30
Motorcycle insurance plans differ from typical automobile insurance plans because, with a bike, there are countless parts and accessories that can be added which will alter the unit's value. Upgrades are possible in three ways: safety, accessory equipment and aesthetics. Most of these alterations will add value to the motorcycle and should, therefore, be declared to the insurance company providing your coverage.
It's important to neither under- nor over-insure your motorcycle. If you over-insure the bike the extra money spent on premiums will simply be wasted. An example of having too much insurance is obtaining coverage on a new motorcycle equal to the amount you spent when buying the vehicle. With motorcycles, as with cars, there's an immediate depreciation as soon as the new unit is driven off the lot or out of the showroom. Sometimes this can be as much as 20% or more. If an accident occurs and the vehicle is totaled, the insurer will pay only the current market value, not the purchase price you paid for your new bike.
The bottom line is that you should insure your motorcycle for the amount it would take to replace it in its current condition. Parts and accessories added to a motorcycle can increase its value by thousands of dollars but most basic motorcycle insurance plans pay claims based on the stock model, just as the manufacturer equipped it. If you increase your bike's value you also need to increase your coverage specific to the alterations you've made.
While some parts and accessories added to a bike are meant to increase safety, most are meant to increase performance or change the looks. Adding special tires, brakes or an alarm system (or theft tracking device) may actually be seen by the insurer as lowering your risk and might afford you a slight discount in premium cost.
However, adding new mufflers, sissy bars, luggage racks, windshields, sound systems or other electronic devices increase the insurance company's risk exposure and will more than likely increase the cost of your policy when declared. If you don't declare these upgrades, though, they won't normally be covered on most motorcycle insurance plans.
Other potential upgrades that should definitely be reported to your insurance carrier include the addition of a sidecar, custom handlebars and controls, a custom paint job, floorboards, and custom frames, forks, fenders or tanks.
When a motorcycle is involved in an accident there is almost always costly damage done to the bike and, in many cases, to the rider also. It's important to cover yourself with the appropriate type and amount of protection from one of the reputable motorcycle insurance plans on the market.