Tips for Insuring a Classic Motorcycle

You can insure your classic motorcycle through most major insurance companies, but it is often a better investment to shop for coverage with companies which specialize in the type of insurance that you need. These specialty companies know the value of your custom or classic bike, and they will offer you the right type of insurance to cover your machine against damages. Once the correct coverage for your classic motorcycle is in place, you will be protected in the event of a total loss, since you will receive the true replacement cost less any deductible amount with no depreciation.

There is one type of add-on to your motorcycle policy that you can get from most regular insurance companies and the specialty shops as well. This coverage is called "Agreed Value Coverage," and in this particular policy the insurer and insured come to an agreement on what the full collector value may be for your bike. The cost of your coverage will be adjusted to meet the replacement value of your machine accordingly. I learned about this special type of coverage when I had a 1971 MotoGuzz. I learned quite a bit about this process when researching rates for that particular bike.

Of course there are caveats to consider with these special policies, and one of those is that many insurers will demand an appraisal of the classic cycle before any policy will be written. This is handled during the negotiating phase of your insurance policy purchase, and is also the time you need to have your background information in hand so that you are as educated as possible on your insurance options.

There is one thing that is certain; unless you have the classic cycle stored in a museum or showroom and never actually drive it, then you may be able to save quite a bit on your insurance by carrying only the "Agreed Value Coverage." However, if you drive it even just once a season then you would probably still want to insure your motorcycle with liability, comprehensive and uninsured motorist coverage as well. This way you can make a claim in the event anything happens to you motorcycle when you are riding your bike or when it is in storage.

One of the primary benefits of this agreed value policy is that the coverage is not subject to a lesser payout due to depreciation, and in the event of a total loss you will be paid the full amount of what you had agreed upon with your insurance agency. Of course this will be less any deductible amounts that you have written into your policy.

When I had my 1971 MotoGuzzi I found that my regular insurer had the best deal going, since I already had my cars and home insurance with them. Since I was only an occasional rider, they found other discounts that kept my premiums low as well.

So if you have a collectible or classic motorcycle, then it would be wise to shop with both regular insurance companies and the specialty companies who deal with classic motorcycles. You may be surprised when you learn which companies offer the best coverage with the lowest rates!