TUESDAY, JULY 18, 2023
Though many bikes and motorcycles are inexpensive (as compared with cars), others can cost tens of thousands of dollars. Like with car purchases, many individuals purchase their motorcycle through a loan. There’s nothing wrong with that, but it may require you to take a closer look at the motorcycle insurance that you carry on that bike. Even if you do not have a loan, having comprehensive coverage onto your bike’s policy is important. It safeguards your investment; and ensures that you can spend more time riding and less time worrying.
What Your Loan Requires
Take the time to read through your loan documents. What you may find is a requirement there to maintain comprehensive coverage on your motorcycle. This means you’ll need to have coverage for most of the risks your bike faces while the loan is in place. This may include the following types of coverage:
- Property protection to cover the value of the bike; generally, at least the amount owed on the loan, though covering the entire value of the bike is beneficial.
- Liability insurance, which is a requirement in most states.
- Collision insurance that protects the bike in instances in which you damage it in an accident.
- Comprehensive coverage that provides protection from fires, theft, vandalism and other types of accidental or unpreventable losses.
- Uninsured or underinsured motorist coverage, which helps cover the costs related to your bike in instances where another driver does not have any or enough coverage for the damage they’ve caused.
Why does your motorcycle lender care if you have this type of comprehensive motorcycle insurance? It’s simple. They’ve invested in your bike. Your bike is the collateral used to secure the loan. If something happens to your motorcycle, the insurance policy can pay out enough to cover what you owe on the loan. It is a way to safeguard their investment in the purchase.
If you are planning to obtain a loan for your bike, be sure to look at the details to ensure all of the coverage you need is in place. Your insurance company can help you to make sure you remain in compliance with your loan contract, as well as properly protected for the investment you are making.
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NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
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