Custom Motorcycle Insurance

A great deal of time and money goes into the building of a custom motorcycle. One-of-a-kind custom bikes are usually home-built by the owner or produced in very limited quantities by specialty garages and manufacturers. Unlike production motorcycles that are mass produced, each custom bike is unique and may be highly stylized and very valuable. Expensive customs have gained popularity in recent years due to motorcycle television programs such as American Chopper, showing the manufacturing process of these bikes. Owners have numerous decisions to make with regard to bike specifications such as engine, color and accessories, but decisions do not stop after construction is completed. One of the next steps is to shop around for the right kind of motorcycle insurance. Most owners understand the risk of riding their custom bike, but want to fully enjoy their masterpiece rather than have it sit unused in the garage.

Get an Appraisal

The main reason that specialized insurance is required is that custom bikes tend to have a higher price tag. The cost of building a custom motorcycle can be very high and it is not usual for a customized bike to be over double the price of a standard bike. Since each custom is uniquely built, they also lack any recognized blue book values such as found in Kelley Blue Book. This lack of values makes custom bikes harder to register and more difficult for insurers to calculate insurance quotes. An appraisal is the first step to getting insurance in order to document any money invested. In fact, most insurers will require a certified appraisal before writing any policies and calculating any premiums. Some states also require a semi-annual or annual safety test and inspection to show that the bike is certified to operate safely on the road prior to obtaining insurance.

Specialized Coverage at a Premium Price

The attractiveness of custom bikes makes them more prone to theft. Coupled with the accident risk that motorcyclists face, custom motorcycles require specialized coverage. Regular insurance plans may only pay for standard repairs that do not take into consideration the rare details of a custom built motorcycle, while specialized plans can cover the little details to restore or replace the bike to its original condition. In addition, a standard plan generally gives an estimated depreciated value for the motorcycle, while customs often sustain their value or appreciate over time. Therefore, it is important to find an insurance plan that takes into consideration any appreciation in value that may occur as well as the full cost of the bike.

One important factor to keep in mind when customizing a bike is that higher values equates to higher premiums. It may not be worth putting that extra money into a custom unless a budget is set aside for motorcycle insurance. To help lower the cost, some insurers may only offer liability insurance that covers damage and injury to other drivers and passengers, not the motorcycles. However, the best plan will allow for the appropriate level of coverage needed at the best price, which is determined on an individual basis. Owners need to evaluate their financial situation, driving history, how often the bike will be driven, and storage and security options, in order to determine coverage needs such as liability, collision, comprehensive, and uninsured/insured motorist.

Research and Compare Before Buying

While not all insurers want to take on the added risk of offering these types of policies, owners can find companies that offer specialized coverage. It is well worth the time to research companies in order to protect the large monetary and time investment that goes into custom bikes, taking into account the full cost of the bike as well as any possible appreciation over time. Several quotes should be obtained from insurers who specialize in custom bikes before making any decisions. Talk to local garages, family and friends, and research companies online. Don’t forget to review the financial strength and customer service options of each company, so that expectations will be met in the event of questions or claims.

Buying the right kind of custom motorcycle insurance will allow owners to fully enjoy their bike on the road!

Resources for More Information

• U.S. Department of Transportation Federal Highway Administration – Provides links to state transportation web sites for further information on registering and inspecting custom motorcycles.
• American Motorcyclist Association – Covers a broad range of motorcycle riding and safety topics and includes information for custom motorcycles.