It’s a bad day when your bike is stolen or totaled even if you walk away without any injuries, but your day gets a lot worse if you find that even with your deductible in hand, the check from your motorcycle insurance company is not going to get you the same quality bike as you just lost. Here are a couple of ways to avoid the shock or the problem all together.
First, the fair market value of your motorcycle used by the insurance company is normally the Blue Book value of the year, make and model of your bike with a similar amount of miles. Next, although most policies include some amount of coverage for chrome, accessories and aftermarket paint jobs, whether they come on the bike when you buy it or you add them after you purchase the bike, it is often not enough. So ask your agent what amount of upgrades are included in the policy so at least you aren’t surprised when you get the check from the insurance company or if they offer a supplementary coverage option for additional upgrades.
Most standard insurance policies are a “replacement value”, which is the Blue Book value plus the limited coverage for your upgrades included in the basic policy and then of course any additional upgrade coverage you may have opted for. At some point, if you have a lot of upgrades and modifications to a stock bike or if you have a custom motorcycle, it might be worth the additional expense to get a “stated value” insurance policy.
A stated value policy reimburses you for the specified dollar amount in your policy in the event your motorcycle is stolen or totaled and the value is normally established by appraisals before the policy is written. This type of policy is more expensive, but before you spend a lot of money to buy or modify a bike or have a custom bike built, insuring it for the full stated value is an additional expense to consider.