Loss Settlement
Whether you own a stock Sportster or a complete custom ride, understanding what type of loss settlement is defined in your motorcycle insurance policy is critical.  Loss settlement is how the value of your motorcycle is determined in case your bike is irreparably damaged or stolen and never recovered.  Usually the type of loss settlement in your policy is based on the motorcycle being insured.

There are three types of loss settlement – Actual Cash Value, Agreed Value, and Stated Amount.  Actual cash value uses a third party, like Kelly Blue Book or the N.A.D.A. guides to determine your settlement; this is generally used for mass-produced motorcycles.

Stated Amount settlements are based upon a settlement amount you chose during the insurance quote process.  Settlements are based upon either that amount or a stated value from N.A.D.A. or Kelly Blue Book, whichever is less.  They’ll charge you a deductible too!

If you have a custom or classic motorcycle, and you agreed upon a settlement amount when you bought your policy, then you have Agreed Value coverage; in the event of loss, that is the amount you’ll receive.  In this case there is no deductible.

Knowing the type of Loss Settlement you have can make the difference between replacing your motorcycle or just wishing you could if something happens.  Make sure to identify which type is offered in any policies you consider.  Progressive Insurance offers some great motorcycle policies, and you can start the free quote process through this site.

Ride Hard, Ride Fast.

Physical Damage Coverage
This optional part of your policy usually includes comprehensive, collision, and custom parts and accessories coverages.  Collision generally means just what it sounds like – crashes with some type of object, although many don’t include animals as an “object.”  Comprehensive coverage handles things like theft or weather damage. 

If you’ve customized your bike much (and who doesn’t?) the custom parts/accessories section is the part you need to check out.  The standard amount of coverage included in this area can be as little as $500 up to $5000, depending on the policy, and it’s your job to find out what that amount is before picking a motorcycle insurance company.  If you’ve got a lot of custom parts on your bike, consider buying additional coverage; the few extra dollars will be worth it if something happens to your custom bags or pipes, much less those custom wheels.

Tomorrow – Loss Settlement

It also made me think about the riders I know who are going and of course my thoughts eventually turned to insurance.  Many people have asked us about finding cheap motorcycle insurance, so I thought I would share that information with you too.

Motorcycle insurance for good riders is highly competitive, so insurance companies are willing to compete for your business.  Start by going online to get motorcycle insurance quotes, and compare those to your current policy.  If you are staying with the same insurance company, see if there’s a renewal discount included in your quote.  When switching to a new company, make sure that they know that you’ve qualified for insurance before, which should help lower your premiums.

Confirm that the insurance company’s copy of your driving record is accurate.  If they get things wrong, like thinking you’ve received a ticket or been involved in an accident, it could easily affect your rates.  Just like your car insurance history, proving you are a safe rider keeps your premiums low.

How many miles do you ride on an annual basis?  This is critical in calculating your motorcycle insurance costs.  The lower the mileage, the lower your rates, so if you only ride locally on weekends, this could really pay off.

Make sure to check out more ideas for saving money on motorcycle insurance.  If you’re going to Sturgis, have a cold one for me at the Full Throttle!  And share your stories and pictures when you get back!