Motorcycle Insurance Articles
Appraisal Values For A Motorbike And Three Ways They Differ From Those Of A Car As Assessed By An Insurance Provider
2010-05-09
Knowing the value of your motorcycle is critical to understanding your insurance policy. After all, if you don't know how much your bike is worth from an insurer's point of view, you can't buy a reasonable amount of insurance. You could end up under-insuring the motorcycle, which could lead to a large discrepancy between your repair bills and what your insurance company is willing to pay. Unfortunately, it's far more difficult to find the appraised value of a motorcycle than it is to find the value of a car, and in fact the means that insurers use to assess this value is different, as well. Of course, if you want to have power of your insurance policy, you've got to take a few steps to understand these means.
Unlike with a car, a motorcycle's age is not necessarily a detriment, even if you've got a less expensive model. Collectability and the economy affect a motorcycle appraisal value far more than they'd affect a car's value. It's therefore more difficult to quickly gauge the value of a bike. Another factor is mileage--unlike with cars, the mileage of a motorcycle doesn't follow a strictly affect on the value. Of course, more mileage is generally a bad thing all around, but as motorcycle engines are extremely different from car engines, the effect of mileage can vary, even from one motorcycle model to the next.
The additional value of bike add-ons and custom parts can also affect the bike's total appraisal. However, custom parts and add-ons are covered by a separate type of motorcycle insurance coverage, typically called something like "custom parts insurance" (which will also be offered by your insurer). Don't neglect this type of insurance if you're into upgrading and personalizing your motorcycle--you could get a relatively small payout if you have to make a claim for the bike's value. Get all of your equipment assessed for value early and buy sufficient coverage. If you're ever involved in an accident, you'll be glad that you did.
If you're trying to buy the right amount of motorcycle insurance coverage, a private appraisal is often required to accurately gauge a motorcycle appraisal value. This is because common resources like Kelley's Blue Book are unable to provide strict guidelines for finding out the depreciation (or appreciation) of a bike as it gains mileage and years. A professional appraisal combined with a few good conversations with your insurance agent will help you to select an appropriate amount of insurance that will protect your motorcycle, even if you have to make a claim for the entire value of the bike. This background information can save you money later on.