Insuring a Standard or Custom Motorcycle

Motorcycles, like cars and trucks, must be insured in order to be street-legal. For "normal" motorcycles, the kind you ride out of the dealership and don't modify, obtaining insurance is relatively simple. Most mainstream auto insurers also cover motorcycles, or can refer you to someone who does.

Typical motorcycle insurance includes many of the same components that appear in an auto insurance policy. Protection for the motorcycle itself includes collision coverage (which will sometimes reimburse up to $2,000 for the cost of safety apparel), comprehensive coverage (in case of theft or vandalism), and un/underinsured motorist coverage, while protection to you or other people includes coverage for bodily injury, property damage, medical expenses, and guest passenger liability.

Most mainstream motorcycle insurance also includes an OEM endorsement, so that any parts that have to be replaced after an accident are from the original equipment manufacturer, towing and labor, and roadside assistance.

If you have a custom bike, however, mainstream insurance may not be your best bet. We know of only two "regular" insurance companies that cover modified or customized machines: Nationwide and GEICO. They both offer limited coverage on custom parts and equipment, and limited coverage for "kit" bikes or vintage motorcycles - generally these limits are around $30,000.

If your customizations are limited to a fancy paint job and a couple of modified parts, or if your bike is an antique, this may be the way to go. If, on the other hand, your bike is highly modified or customized, you'll want to seek out a specialty insurer. One such insurer is a company called Fischer, which specializes in motorcycle insurance, but most collectible auto insurance companies will consider motorcycles as well.

There are two key points to remember when shopping for specialty motorcycle insurance:

1. You'll probably need an appraisal. Since customized bikes generally have values that are significantly higher than the book value for the base model, and likely cannot be directly compared (because all customized motorcycles are unique), an appraisal is essential. This way, you and your insurance agent will be starting on the same page, with an accurate assessment of the money and parts you've invested into your bike. If possible, get an appraisal from an independent company, and not one affiliated with the insurance company.
2. You will probably pay more. The higher the value of a motorcycle, the higher the premiums will be, and since motorcycles are high-risk methods of transportation anyway, finding "cheap" specialty insurance may not be possible. While you can use the Internet to compare quotes and gather information before you commit to a company, product, or price, you may find that customizing a bike for two or three times the initial value isn't worth the cost to insure it.

The bottom line? Motorcycle insurance is available for standard or customized machines. If you don't like the first quote you're given, be sure to ask questions, or even seek other opinions. Remember that you can often save money if you belong to a bike club, as well, so if you've been thinking about a membership, now is the time to go for it.