Do you carry collision coverage?

[smiller]

It's always seemed to me that collision insurance for motorcycles is not very cost effective given that for many bikes it can amount to over 50% of an insurance bill and even represent a significant chunk of the purchase price of the vehicle every year. As a result I've often thought that it makes more sense to self-insure and bank the money that would be paid as insurance (note that I'm talking about only collision coverage here, not liability or UM.) The situation is better for BMW bikes and, err, mature riders who do not have to pay such high amounts for collision coverage, but still it seems like a kind a shaky proposition (depending on how many at-fault accidents you tend to have I guess.)

 

I look at insurance as something that tends to be cost effective only for catastrophic losses and so my usual practice is to maintain liability and under/uninsured (and comprehensive 'cause it's so inexpensive for BMWs) coverage on my bikes but not collision. This has paid off for me but I wonder how many others have done the numbers (which admittedly can vary quite a bit depending on who you are and what you ride) and maybe don't see it the same way?

[Voyager]

I'm glad you posted this. I was just thinking about it, having recently paid off financing for the bike. Collision & comprehensive cost me $100 per year for the bike. I need to do the numbers and find good facts on what "blue book" value I will recieve on my bike, especially as it ages. The "self insuring" concept won't work for me. If I had an extra 5-7K sitting around for replacement purposes, Id just buy a second bike

[Ken H.]

I think a bike is just like any other vehicle in this regard. You have to do the math of its current value, vs. average cost of repair, vs. premium for the coverage, vs. expected remaining longevity/ownership. Then come to some sort of an educated guess as to when it makes the most economic sense to drop the collision (and comp. for that matter) converge. My personal rule of thumb is somewhere around when the vehicle reaches 40% of its original value.

[russell_bynum]

My personal rule of thumb is somewhere around when the vehicle reaches 40% of its original value.

 

With a BMW, that's about six days after you take delivery.

 

 

j/k...they hold their resale fairly well until new models start coming out. My 1100 was doing pretty good until the 1150 came out...then it took a nosedive. Now that the 1200 is out, I'd have to pay someone to take the thing off my hands.

 

Still have full coverage on both bikes, but I'm about to change that.

 

Oh...and you geezers who pay next to nothing for insurance suck. My premiums amount to about 1/2 of the value of the bike. I don't know at what age the insurance companies decide that you are no longer a ricky racer moron who does 140mph wheelies through school zones, but apparently 30 is not it.

[DogGone]

I don't carry collision. I figure if I cause the accident then the damages to my bike are a "idiot tax".

 

...and Russell, you got about ten more years.

 

pete

[smiller]

I figure if I cause the accident then the damages to my bike are a "idiot tax".

 

That's the way I look at it too but never thought to phrase it that way...

[steve.foote]

It depends on the cost of the insurance. Personally, I won't pay more than 10% of the value of the motorcycle for collision insurance. My current policy is around $300 for collision which is approximately 2.3% of its current value.

 

Comprehensive is usually so cheap, that I keep it for the life of the vehicle. Don't forget that comprehensive covers theft.

[Tcreek]

Remember: It cost more to fix or replace one than it does to buy one." in most cases"

[ednap]

Australian insurance options are probably different than in the US?

 

Third Party Cover (CTP Green Slip) to cover the other party for medical costs is compulsory for everyone regardless of the type of vehicle you have.

 

Then you have the option of third party property (with option of fire & theft) to cover repair costs to the other vehicle or full comprehensive which covers the costs of repairs to your own and any other vehicles involved in an accident. Additional options include cover to Market value of the vehicle (as determined by the insurance company) or agreed value as agreed to by you and insurance company at the time of taking out the insurance policy).

 

Of course comprehensive agreed value is the most expensive and the individual’s premium is calculated based on the age and driving record of the driver plus the type and value of the vehicle they have. Other factors include who else is going to drive/ride the vehicle and their age.

 

A good driving record for a driver over 25 years can see a rating 1 achieved which can provide around 40% discount on the cost of the annual premium.

 

Normally if the vehicle is under finance then full comprehensive insurance is required by the finance company.

 

Specific insurance options for bikes from some companies are discounts if you are over 45, if you have an alarm immobilizer fitted or if you are prepared to state you only use your bike for occasional riding (not daily commuting).

 

Though my bike is not under any fiancé I opt for full comprehensive insurance as I do use it as my daily commute and replacement costs vs insurance premium are too high to cover out of my own pocket.

 

(It probably differs slightly from State to State as well and I may have over simplified things a little)

[Ken H.]

Australian insurance options are probably different than in the US?

In the USA what you call there "Third Party Cover" and "Third Party Property" is lumped into on category called "Liability" and in most states is mandatory. In almost all stated on a cage, in most, but not all, states on a bike.

 

Then damage to your vehicle/bike is divided into damage caused by a collision, called "Collision", or damage caused by something else (such as thief or acts of nature) called "Comprehensive." These two are optional in most states, but if the vehicle is being financed, the financier often requires them to cover themselves.

 

Then there is coverage of injuries to yourself, called "Personal Injury Protection" ("PIP"). In some states you can elect not to carry PIP when on a bike if you have other medical insurance that would cover your injuries such as a medical policy through an employer. But some of those policies specifically exclude "Recreational Activities", which riding a motorcycle (even when commuting on the street to/from work) is considered. So you have to know your employer's policy before you decided whether or not to carry PIP.

 

Then there is a couple of states (Florida for example I believe) where you can legally ride a motorcycle with no insurance at all! And some states reciprocate insurance rules and some don't. If you live in a no insurance state you can ride into some other states without it, and not into others.

 

Simple isn't it?

[Bobmws]

I carry full coverage, now including un/under-insured motorist. Last year my '03 KRS was totalled by an under-insured rider. This was a doctor on an '02 Harley who took out a Hayabusa in addition to my RS. He had 10/20 coverage which meant I could only recover $5k toward my bike and $10k medical, which they would only pay upon final release! I won't go into the details of trying to contact Bikeline/Markel!

The estimate on my bike was $17K!, Progressive paid me more than I paid for the bike (purchased used at 6 mos. old). Without my insurance I'd have been sitting there with a check for $5k, a totaled bike, and trying to sue the responsible party. How much hassle would that have been? More than what I pay for the peace of mind my Progressive premium provides me!

As for having coverage from an existing healthcare provider? Big Joke!!! When I mentioned that I had been in a motorcycle accident, the doctors in my plan said, "We don't handle cases like that"!

[Wooster]

smiller,

 

I don't know squat about Texas insurance rates but there's lots of variability across the 50 US states. In sleepy (and currently cold) NM, GEICO charges me $117 (total) for my annual oil head policy which includes $53 for collision & comprehensive. My R11RT, regardless of any blue book, is worth 7 to 8 thousand, so yearly collision & comprehensive fee is small potatos (that's potatoes for any Quayles and/or petite pomme de terre for any Francophiles). My sympathies for California, Massachusetts et al riders when insurance bills are due.

Lastly, as for geezer discount, well Smiller, I'll take any savings with a smile.

 

Wooster, who lives in a state known for frugality

[smiller]

Lastly, as for geezer discount, well Smiller, I'll take any savings with a smile.

 

That was Russell who was waiting for that... unfortunately I already get it...

[steve.foote]

One other thing to add to the insurance discussion. Deductibles!

 

You can vary your premiums substantially by raising your deductibles. Even slightly.

 

If you're a habitual non-claimer (like me ) the premium saved with a higher deductible makes sense. You remain protected for the major risk, while giving a little for the minor stuff.

 

And, as if this topic isn't already confusing enough, you can set different deductibles for each coverage. So, for example, you can set a $100 deductible for your comprehensive and a $1000 deductible for collision.

 

Play with the insurance calculators online (Progressive has one) and experiment with the effect on premium the deductions have.

[BruceWA]

I keep full coverage on both my beemer and my dirt bike (KTM 450EXC)

[Macamoose]

I am required by my state to have insurance. I do keep the full coverage but mitigate the cost by keeping a fairly high deductable ($1000) on the bike and ($500) on the cars. Unfortunately my state or more correctly 'commonwealth' sets the rates and eliminates the company's ability to attract customers by lowering them. Subsequently the insurance cost is ridiculous for everyone.

There is a safe driver discount, based on a scale starting a 15 points and going down 1 for every good year (to a min of 9) and up whenever there is a claim or moving violattion assesed. The real kicker is that they charge the higest points to the most expensive vehicle regardless of who the primary driver is, even though they're not licensed to ride. So long story short, the new GS will be insured through a separate company than our cars. See, 'common wealth'. All of the insurance companies get some of mine.

Thad

[ednap]

Australian insurance options are probably different than in the US?

In the USA what you call there "Third Party Cover" and "Third Party Property" is lumped into on category called "Liability" and in most states is mandatory. In almost all stated on a cage, in most, but not all, states on a bike.

 

Then damage to your vehicle/bike is divided into damage caused by a collision, called "Collision", or damage caused by something else (such as thief or acts of nature) called "Comprehensive." These two are optional in most states, but if the vehicle is being financed, the financier often requires them to cover themselves.

 

Then there is coverage of injuries to yourself, called "Personal Injury Protection" ("PIP"). In some states you can elect not to carry PIP when on a bike if you have other medical insurance that would cover your injuries such as a medical policy through an employer. But some of those policies specifically exclude "Recreational Activities", which riding a motorcycle (even when commuting on the street to/from work) is considered. So you have to know your employer's policy before you decided whether or not to carry PIP.

 

Then there is a couple of states (Florida for example I believe) where you can legally ride a motorcycle with no insurance at all! And some states reciprocate insurance rules and some don't. If you live in a no insurance state you can ride into some other states without it, and not into others.

 

Simple isn't it?

 

Thanks for taking time to clarify Certainly some different standards applied to the same term. Comprehensive for example. I'm glad we only have 7 States not your 50

[David]

Thanks for taking time to clarify Certainly some different standards applied to the same term. Comprehensive for example. I'm glad we only have 7 States not your 50

 

We could actually do without quite a few of them.

[ednap]

Thanks for taking time to clarify Certainly some different standards applied to the same term. Comprehensive for example. I'm glad we only have 7 States not your 50

 

 

We could actually do without quite a few of them.

Off Topic: Yeah well there are some here who suggest that our PM lives inside the the pocket of GWB so we are just about another 7 States of the US anyway

[Green RT]

We could actually do without quite a few of them.

I am tempted to make some suggestions, but that would undoubtedly lead to a major hijack.

 

PS Just noticed this thread is a week old.

[JonathanE]

The way I ride, I carry all the insurance I can get, on my bikes.

 

I carry liability only on my truck though. That's only one of the great things about driving a truck so old that it's resale value goes up and down with the gas guage needle.

[Eschelon1]

Ditto, If I had the extra money, I have another Bike.

 

[jimbo77]

Full coverage all the way! It's cheap on my ST. $239 a year gets me $250 deductibles, un/under-insured motorist (stacked from my auto policy) and 25/50/25 coverage. On the other hand, my Aprilia costs me $550 year, with $250 of the comprehensive, but $1k on the collision deductible, all else is equal. Darn Italian bikes!

 

 

It's all worth the piece of mind to me.

[Global_Rider]

I look at insurance as something that tends to be cost effective only for catastrophic losses...

 

That is exactly the way I feel about it and exactly why I get the bare minimums; no collision, fire and theft coverages.

 

Up here in the dictatorship of Ontario, one also has to carry mandatory Accident Benefits and Uninsured Motorist on top of Liability.

 

The best part, my insurance company will never have to pay out Accident Benefits to me in case of an accident. I'm covered through my workplace, yet I have to take the coverage and pay the premiums which about to more than 50% of my insurance bill.

 

31 years driving cars and motorcycles, 31 years accident and insurance claim free. So who is having all the accidents that drive rates up?