When it comes to protecting your motorcycle, getting insurance is something that is required in most states. However, if you have a classic or vintage motorcycle, then you may want to consider getting the type of insurance that is better suited for that particular need.
Vintage motorcycle insurance offers a different type of protection that may work better for a bike that you may have spent a great deal of time, money and energy in restoring.
Why You Need Vintage Motorcycle Insurance?
It must be noted that not every insurance company will cover vintage or classic motorcycles, so you will need to thoroughly check out the companies to see which one carries this type of insurance plan. The intent of this type of insurance is that your bike is protected when damaged, so it is not like liability insurance that only covers the other vehicle.
To get the best vintage motorcycle insurance, it will need to provide enough coverage that will allow you to fully repair and restore your bike to the condition it was in before any damage occurred. Plus, it will need to be affordable and fit your budget as well.
Is Classic Motorcycle Insurance Costlier than Standard Coverage?
The answer is often no, classic motorcycle insurance it not necessarily more expensive than its standard counterpart. Although this will depend on certain factors which start with the value of the motorcycle itself. However, the bigger difference is that some insurance companies actually consider certain vintage motorcycles to be less of a risk than many modern versions.
While you are still as vulnerable sitting on a classic motorcycle as you are a modern one, certain vintage motorcycles have a proven track record of safety and may be slower than new versions which in turn mean less risk and thus lower rates. However, while the actual value of your classic motorcycle may be difficult to assess, you can use an agreed value and base your payments for that.
There are a number of questions that will need to be answered before you can choose the right type of insurance for your needs which includes the following questions;
What determines the premium for your Insurance Coverage?
Basically, the premium will be set by a number of factors which include the following;
- Actual value
- Agreed value
- Custom parts and equipment
Generally speaking, the actual value of your vintage motorcycle may be quite low depending on the model. This is because motorcycle insurance rates are generally set by the risk factors in driving a particular bike on the road and not its value in terms of its demand. So for example, if your motorcycle fetches $10,000 on the collector’s market, the actual value may still be $1,000 because the actual value uses factors that are different in terms of coverage.
What is an Agreed Value?
The agreed value is determined by the collector’s value that the bike will have when sold on this particular market. The premium will be adjusted to cover the agreed value in your particular case so that you can fully protect your investment. Of course, the collector’s value will be determined by the condition of the motorcycle as well.
The factors that generally go into the agreed value include, but are not limited to the following;
- The overall condition of the motorcycle.
- The brand of the motorcycle.
- The use of new or custom parts on the bike.
- The mileage on the motorcycle.
- The overall price it will fetch on the collector’s market.
The collector’s market is a relatively finicky one because a bike that is in mediocre shape may get a higher price than one in excellent shape because new parts were used for example. So, the general value from the collector’s market must be ascertained which is usually an average of prices that similar bikes have gone for before and then they are added to the actual value of the bike along with any customized parts, equipment or accessories.
So, it is possible for example that your premium might rise because you used a specific customized part which has inherent value, but at the same time drop because it lowers its overall collector’s value. The good news is that collector’s values are generally well documented for most types of vintage bikes so the insurance company will have some basis for determining an agreed value.
The brand of the motorcycle is another important point as well. Popular vintage motorcycles such as the 1966 Honda Trail, the 1940 Indian Chief, or the Brough Superior which was most associated with T.E. Lawrence are typical of the vintage bikes where coverage costs can differ.
The deductible is another negotiating point as the higher it is, the less you will pay in insurance cost. Add to that mileage which is also an important factor. If you only drive your vintage bike under a pre-set series of miles each week, you may enjoy a healthy discount. Safety is another factor as keeping your bike locked up in the garage will lower the rates as compared to keeping it in the driveway. If you have devices installed in bike to prevent theft, you will avail discounted premium as well. Here are tips for you to prevent motorcycle theft.
Getting Affordable Vintage Motorcycle Insurance:
Finding classic motorcycle insurance starts with searching the companies that provide for it. Once you have located the right insurance companies, the next step is finding their agreed rates for the value that you place on your motorcycle. You should compare from three to five different quotes or more depending on the number of companies that you consider.
Plus, there will be some important questions to address which include the following;
- Will the insurance rates rise in case of an accident?
- How much should the liability coverage be?
- Are there mileage limitations?
- Are custom parts and equipment covered as well?
You will need to have these questions answered so that you can make the best informed decision about which insurance company to choose. With vintage motorcycle insurance, it is important that you place the agreed value as the basis for your coverage. In this manner, you can cover what you invested into the bike as well as the recognized actual value which will is usually significantly lower.