Does Motorcycle Insurance Provide Theft Cover?

The problem with motorcycle theft is that it doesn’t take much ingenuity to steal the bike. A couple of guys can simply lift it, put it on the back of the truck, and drive off with it. Well maybe it isn’t always quite that simple, but thieves don’t need to jimmy the ignition or override an alarm system.

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Of course this it is also far more difficult for the cops to track and find a stolen motorcycle. Of the reported 46,467 motorcycles that were stolen or lifted in 2016, only a meager 39% were recovered.

What this means is that motorcycles are more risky for insurance companies to cover for theft. The fact that a bike is easier to steal and more difficult to recover than a motor vehicle means that is a higher risk to insure and therefore insurance providers will charge more.

But this does not mean that you can’t get theft cover from your insurance provider just that it is probably going to cost you more. Instead of regular liability insurance cover, you are probably going to have to take out a comprehensive insurance policy.

Comprehensive Motorcycle Cover

Couple riding motorbike on a country road

Comprehensive insurance policies should provide theft cover – but not all do. So read the policy document carefully to check if theft cover is included. In general, a comprehensive insurance policy should cover the following:

  • Collision cover for repairs or the replacement value of the motorcycle.
  • Liability cover for the cost of repairs and injuries sustained by a third party in a collision.
  • Medical cover for any injuries you may have sustained in a crash.
  • Loss or damage resulting from events other than a collision. For example, the weather, damage by animals, and theft. The theft cover may also provide for additional items such as a helmet or other motorcycle gear that is stolen with or from the motorcycle.
  • Uninsured or under-insured cover to cater for costs of repairs, replacement or injuries sustained in a collision with a driver that is not insured or where their insurance is insufficient.
  • Loss or damage of any added extras or upgrades such as a sidecar, trailer, custom exhaust, etc.

With this wide range of cover, comprehensive insurance is actually well worth the extra cost and highly recommended. However, it is still vital to check on the limits and restrictions that may be placed on the cover, and when you will be able to claim.

Insurance Limits And Restrictions

Different insurance policies may work a little differently when it comes to providing theft cover. If the motorcycle is stolen it may provide cover for the actual value of the motorcycle at the time of the theft or the replacement value of the vehicle.

Actual Cash Value vs Replacement Cost:

Replacement value is the far better option as it covers the cost of a bike to the equivalent value of your motorcycle when you first bought it. The actual value will only provide for an amount that is equivalent to the amount that it is worth after it has depreciated.

Some restrictions may also apply to the conditions of the theft under which you can claim. Some insurance policies would not provide cover if the motorcycle was parked in what they consider to be an unsafe neighborhood or area. They may also insist on some features like a tracking or anti-theft device be installed. Read the fine print and terms and conditions very carefully to understand these restrictions.

Be aware that

You may also be required to pay a deductible when you claim for the theft of your bike. The deductible may be a set amount or calculated as a percentage of the payout that you will receive. You will not receive a payout from your insurance provider until the deductible has been paid in full.

Motorcycle Theft Insurance Claims

You will need to provide several documents and complete a claim form to submit to your insurance provider to claim for the theft of your motorcycle. The materials may include:

  • A police report and a case number. You should report the theft to the nearest police department as soon as possible and ask for a copy of the report and a case number.
  • Copy of the certificate of registration for the motorcycle.
  • Copy of your current driver’s license.
  • Location, time, and date of the theft.
  • Motorcycle theft claims form.

Make sure that you complete the claims form entirely and submit with all required documents. Contact your insurance provider to make sure that they received the forms, documents and ask whether they need any further information.

It is possible to get a separate or individual theft cover policy for a motorcycle that doesn’t provide for all other incidents. However, these policies are often far more expensive and not really worth it in the long run. Comprehensive motorcycle insurance that includes theft cover is definitely the way to go to.

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