Just What Does Your Motorcycle Insurance Cover? – Part II

August 15th, 2007 by Brad C

Yesterday we talked about Physical Damage Coverage, including comprehensive, collision and custom parts coverage.  Today we will expand that discussion to include Loss Settlement.

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.

Listen to Just What Does Your Motorcycle Insurance Cover? – Part II
Listen to Just What Does Your Motorcycle Insurance Cover? – Part II

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Just What Does Your Motorcycle Insurance Cover? – Part I

August 14th, 2007 by Brad C

A survey by Progressive Insurance shows that most riders aren’t clear on just what the physical damage coverage or loss settlement sections of their motorcycle insurance quote actually cover.  No surprise here - the descriptions are usually written in “insurance-ese”, which usually requires an insurance agent to explain.  Since we don’t want you to get lost in translation, here is some information on just what is - and isn’t - included in each type of coverage.

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 is 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.

Next - Loss Settlement

Listen to Just What Does Your Motorcycle Insurance Cover? – Part I
Listen to Just What Does Your Motorcycle Insurance Cover? – Part I

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