Insurance for Motorcycles
and Sidecar Rigs
(Includes some hints on damage claims at the end)
©
copyright, 2011, R. Fleischer
insurance.htm-82A
Need insurance?
Want a good price? Ready to spend some time
getting a good rate and coverage? Willing to do it every year or two or
three? Want some insider's knowledge?
Insurance questions comes up now and then and on just about every motorcycle
LIST. I only wish there was a simple answer as
to which company. I hope to give you some REAL information below!
""The truth of the matter"" (sounds like I'm a political
hack....eh?) is that insurance costs vary not only
by company, but by State and location
of your home....where the motorcycle is kept, or where you normally sleep.
Not to mention YOUR past history of traffic citations, accidents, if married, if
you have more than one vehicle or your home insured with this same company,
whether or not you have taken a driving course, etc.
The various insurance companies do not pay the same amount of attention to the same factors.
Some companies are especially interested if you are in a big city with lots of traffic;
OR, in
a no-fault insurance State or near one. Some companies are
interested in the mileage (that you estimate to them you
will do every year); seasonal use or not (some automatically include seasonal
coverage; or, by ASSUMING you ride less in the Winter and don't state this, which is fine
and dandy, if you do ride in Winter); and so on. Some companies
are interested in if you are retired or working. Almost all
want to know if you commute to work on the motorcycle. Other companies are interested
in other things.
Some care if you have had (if old enough) a 55-Alive or
similar type of driver program from such as AARP (some States,
like California
MANDATE a discount for taking the course), or have attended some sort of
motorcycle or sidecar training or safety program. Others don't care.
BUT, when getting a rate quotation, you need all these items written down in
front of you, and you MUST be sure the Agent knows of them.
Some are interested, for a discount, if you are a Member of certain
organizations....such as the American Motorcycle Association.
You need to THINK about what questions may come up, and how you
will answer them. If you COMMUTE on the motorcycle, that is
not going to DEcrease your insurance cost, but it MIGHT raise it!
You may have to ask questions about mileage affects on policy
costs. You really SHOULD ask questions about how
passengers are covered, and lots more. BE PREPARED
with pen/pencil and paper.
It is important that you ask the correct questions and check your policy, or proposed policy, for the exact wording. In some instances, some details are NOT clearly spelled out. I have especially found this to be so in the area of borrowing or renting or test riding, and for passengers. ASK!
Another example: Do you REALLY know what "medical payments" means on your policy, if you have that coverage? Did you know it is not just for YOUR medical bills if in an accident....but it is for passengers in/on your vehicle (and motorcycle passengers MIGHT be excluded...so read the policy, or ask!).
Do you REALLY want to
carry collision and/or comprehensive coverage...?? This is
an important consideration on an OLD bike, where the VALUE of the
bike (as an insurance company would view it!!), is likely to be a
lot less than you think! If you have a valuable bike,
valuable over and beyond what the same make, model, year might
normally be on the insurance companies books as to its payoff
value for a 'total loss', you
may want to consider paying the price for STATED VALUE coverage.
Discounts may well be available for age (yours and/or the machine's), for safety programs, for Membership in
the A.M.A, ETC.....so ASK. You may want to
ask about the mileage break-point, that mileage above which your premiums
increase, and by how much. You may want to ask about historic
or antique vehicle coverage. Your State may have lowered costs for
historic or antique vehicle licensing, so you might look into that too.
There are often restrictions however, on mileage, and where you can travel, and
how, for historic vehicles. Sometimes NOT!
Just how you want to have your motorcycle or sidecar rig insured
is up to you, of course.
You PROBABLY want a sidecar
rig not even to be listed as such, but covered under accessories.
Some companies (probably most) DO want it listed as an accessory...but just the
'accessory value'...., they may well NOT want the name 'sidecar'
ANYPLACE on the policy. Many companies just DO NOT
understand the word 'sidecar', heck, many don't understand nor want
motorcycles!... some go nuts when you want the policy to STATE that word
'sidecar' in your coverage. MOST of the time you...and they./..and
YOU.... will NOT want that....ask about such things, openly.
MOST companies seem to prefer to treat sidecars as
motorcycle ACCESSORIES, and may use the words "Custom Parts and
Equipment" instead of 'Accessories'......and you simply declare the value of
the 'accessories'. Some companies will pointedly, for some strange reason
(blame the not-knowledgeable underwriters?) charge plenty extra if there is a
"""sidecar""", compared to the same over-all value for a motorcycle without a
sidecar....or with Custom Accessories. Pretty crazy, since sidecarists are just about the safest
motor-vehicle (per mile traveled) on the road. This can vary by State
within the same insurance company. Some companies automatically cover, at
no additional charge, these Custom Parts and Equipment, or
Accessories, for perhaps a stated
maximum $1000 value (some to $3500). THAT is supposed to cover things like those pricey
saddlebags and tail trunk that came with your bike....and may well cover a
sidecar if it was that value or under or that was the value you wanted to use.
NOTE that if you have Custom Parts and Equipment, and pay extra for it, it is a
very good idea to be sure the insurance company, and the policy, is such that
the STOCK things, that might come under that heading, are handled as if they are
NOT custom items. That leaves you more insurance for REAL added
accessories. Let me clarify that by an example:
You have a R100RT. That
model comes with saddlebags and fairing...so don't include these as part of Custom
items. But, do include your fancy pricey custom seat, GPS, travel trunk,
and expensive modifications.
It is probably a reasonably decent idea to have coverage
that would pay to replace everything, if 'totaled'. If your bike or
rig is totaled, you may well want to negotiate purchasing it back....often
cheaply....from the insurance company. NOTE HOWEVER, as
mentioned above...that it may not pay
to have coverage for collision and comprehensive.
NOTE carefully, that the bike is worth only what the insurance on
it states.....and if not stated, then it is worth 'book value',
which the insurance company will try to use as the wholesale
value, and not with any sidecar or special accessories nor
compensate for very low mileage and showroom looks.
If you have a serious loss, or total loss, you may be negotiating
with YOUR insurance company as to cost to REPLACE WHAT YOU HAD.
Once that is settled, you can negotiate purchasing the bike from
the insurance company, after all, they then own it after a total
loss. This can be very advantageous to YOU AND THE
INSURANCE COMPANY. They really usually do not want to have
to sell your bike, and most will sell it back to you for a cheap
salvage value. YOU can determine its salvage value with a
few phone calls.
When applying for insurance, keep in mind all the things I have already mentioned...and more......
Many models of bikes are fully described by the model number.
What I mean here, is that if you have a R100RT, that describes the engine
size; carburetors, rear drive, etc........but also describes the NORMALLY INCLUDED saddlebags and full
fairing. Thus, you may well not have to declare any 'special equipment or
accessories''. Some companies will ask if you have those things, and you can say
"yes, and be sure to state that they are STANDARD on that model"...so
they are NOT really custom, and should not be charged separately for by the
insurance company.
You can declare a value to cover an expensive custom bike and/or a sidecar (don't forget pricey
sidecar subframe mounts and leading link front fork, ETC.), at an increased premium, that is
usually reasonably priced, but just how it is declared, is something to ask
about. Accessories?
You'd better have and keep pictures in your
insurance folder.
If your bike is particularly valuable (anything over its Blue Book value...and
Blue Books don't go back in time enough these days to cover all our
airheads)...then consider Stated Value insurance.
You may well want to ask about UNinsured motorist
coverage and UNDERinsured motorist coverage...;;; for medical and property
damage. Some companies will
not write it to high limits, only the State
required minimums....if any. I personally consider low limits to be
FOOLISH. Other companies are willing to write these coverage's to the same limits as your PL/PD limits.
Some companies charge outrageous premiums for such coverage's,
others do not.
This is a VERY important consideration,
as many people are driving cars/trucks around with no insurance, or only the
State-required absolute minimums. I prefer high value of insurance for UNinsured
and/or UNDERinsured motorists, in fact I have it at the same amount as my
liability insurance value.
Some companies will not write
medical coverage for bikes, or charge a tremendous amount, for a
minimal amount of coverage. You don't need medical insurance if
you already have medical coverage
without exclusions for what you are riding/driving. HOWEVER, do consider
that such insurance covers YOU, and
maybe your spouse...but
likely not other
passengers!....then, again, it may cover any and all passengers. You have
to ask. Also ASK if your spouse is actually covered, or excluded!...DO
NOT FAIL TO DO THIS!
In fact, you may want to
have the Agent show you the fine print for each and every thing
you ask about!!!!!!!!
ONE thing you had better be VERY careful about asking about,
as it CAN be tricky,
is if the insurance covers passengers and the details of such passenger coverage
(what if blood related? spouse?); and, if the insurance covers YOU.. if you drive
someone else's bike.....and if that situation is a LOANER.....or a TEST DRIVE.
I insist that my insurance cover 'guest passengers'. Those are the
two words on my own policy.
I suggest you re-read this paragraph several times...I am NOT
KIDDING!
Roadside mechanical breakdown coverage ...towing, fuel delivery
for running out of gasoline, may
or may not be what you want....without reading the fine print and
ASKING. Some
insurance policies allow you to call who you want to, and then
you later submit a bill to
the insurance company. SOME companies INCLUDE roadside assistance
and may even have a number to telephone, at no additional
charge. Some have a small charge for such. Some just carry a cell-phone
(it does not work everyplace, often not in the pretties
places. Some have towing insurance through AMA or AAA.
It does not pay
to have duplicate coverage.
While on the subject of asking about things, do NOT take the
agent's word, LOOK and READ the Policy....and ANY endorsements that come with
the Policy. ASK the AGENT to SHOW YOU where the policy
states, in writing, what concerns you!
You can certainly request a policy before purchasing it!
NOTE that coverage
for borrowing, test drives, and specific passenger information, are often
MISSING from policies!
If you have more than one rig or a motorcycle and a rig, and a car or truck or
home, etc., try to have the
same company handle them all, even if you have to phase them in, as the old
policies with another company come due for renewal. Almost all insurance
companies offer discounts for additional insured vehicles...and homeowners
with policies on the home with them;
event rentors!
Almost all offer discounts for longevity (being with that company for a
long time). If you are
getting a discount on your motorcycle (or car) insurance because you have
Homeowner's insurance (or vice versa) with that same company, be sure to take
the discount into consideration if pricing a policy with another
company. Some companies give discounts for loyalty too. ALSO, ask about
recent rate increases, and expected future increases....although
that is usually not overly valuable, from a practical standpoint.
You need to make a list of questions to ask
the company agents, and you probably should get quotations from quite a few companies. It would do little good for me to list my bikes and costs
for insurance, as it will be vastly different for the majority of the rest of
you, depending on so many factors.
If you have a second home,
consider where your cheapest insurance is, as far as legal residence is
concerned!!!
NORMALLY, your 'home' is where you SLEEP 51% or more of the time. Think it
over! If you have a second home, or some sort of
situation like that, get separate quotes for both your 'homes' as
your residence.
Obtaining insurance on motorcycles and rigs requires almost the same sort of intense
questioning and scrutiny you would do for such as purchasing a new car or home.
Do it well before
renewal. You may well want
to take into account a company's claims
history, especially in your area, the company reputation, political leanings (such as furnishing free radar detectors
to cops...), etc.
Once set up with a company, most offer discounts for staying with them,
as I have mentioned, called
Longevity; and, always for being traffic citation and accident free, etc. Once
in awhile, you may find SOME companies inexplicably raising the premiums by a
huge amount. When that happens, and you will hopefully know ahead of time when you
get your advance bill, go hunting again. I recommend doing
the insurance quotation dance yearly. It can be a
chore...or; you can look at it as a game.
What to do
RIGHT AWAY, if you have an accident?
see my article 82B. Don't wait...read it NOW, before you
have an accident!
DAMAGE CLAIMS:
Had an accident, or otherwise damaged your
motorcycle or sidecar rig, etc? SOME HINTS!
This is not a section...so far...on how to deal with yours, or
the other party's insurance company. I may add to this section
later on.
1. Before accepting your bike as being 'totalled';
think it all over...in depth. What happens in your State,
and out of your State, if you buy the bike from the insurance
company? Will the Title have SALVAGE written on it,
or be in the insurance industry database. How do you
license and register a Salvage bike in your or any other State?
Check it all out.
2. When dealing with the insurance agent, be
prepared with proof that your bike was worth what you say it is.
Remember, your bike's value is the value a similar bike in
similar condition before the accident (or theft, or?), would
bring, on average, at RETAIL.
3. HINT: ALSO ask for sales taxes you will have to
pay on obtaining a replacement vehicle, and the months remaining
on your registration fees and prorated un-earned premium!
Remember what you are after: The right insurance, to protect you and your property under all the conditions you will use it or store it; and, the best price; and with a solid good-reputation company.
Revisions:
03/08/2009: Incorporate all prior revisions and check for accuracy and
clarity.
03/29/2010: Add Damage Claims section; and update article
in other areas a bit
08/15/2010: check over
06/14/2011: clarity improvements
07/11/2011: Add note to read 82B
© Copyright, 2011, R. Fleischer