Motorcycle 101 – Useful Endorsements to Consider
If you own a motorcycle, you know about that special bond a between rider and their motorcycle.
The moment you first straddle the seat an instant connection is formed, and you know that bike is meant for you. For many riders, their motorcycle is their ‘baby’, perhaps a project they’ve toiled over in the garage for long hours.
So, when the unexpected happens and your motorcycle now needs to be repaired or replaced, it is in your best interest to make sure that your pride and joy is protected. Unfortunately, some riders are taken aback when their claim payout doesn’t reflect the value of the accessories, their gear, or the required upgrades.
Every insurance provider will have different endorsements available for you to add to your policy to make sure you are covered for what you need, such as “Waiver of Depreciation” and “Equipment and Accessories”.
Waiver of Depreciation
In the event of a total loss, you want to feel secure in knowing you will find yourself in the same financial position you were in the moment you made your motorcycle purchase. The Waiver of Depreciation endorsement helps ensure you receive the highest replacement value for your new bike. It is ideal for bikes that are five (5) years old or younger, and makes certain your insurer is liable for the lesser of:
- The cost to replace the motorcycle with a brand new one, similarly equipped
- The original purchase price
- The current manufacturer’s suggested retail price (MSRP)
The eligibility varies from Insurance Providers, differing from 24 to 60 months of coverage after the purchase date without depreciating in value. So be sure to ask your Lawrie Insurance Group Broker to shop our many Insurance Providers to find the one that offers the best to you.
Equipment and Accessories
When you purchase additional equipment and accessories to customize your ride so it is unique to you, they may not actually be covered on your traditional policy. Purchasing a new windshield, saddlebags, exhausts, even a sidecar, are considered investments that go beyond the original manufacturer. This will typically lead to an increase in value of the equipment attached and require the additional Equipment and Accessories endorsement to ensure they are protected when damage occurs.
This complements an Agreed Value endorsement discussed next.
An Agreed Value Endorsement helps safeguard your motorcycle in the event of a total loss. You and your Insurance Provider agree on the value of your motorcycle at inception, so you will know how much coverage your policy may offer well in advance.
The Agreed Value endorsement is especially useful for the passion-project you finally finished and want to grace the roads with! You likely upgraded the seat, your handlebars, maybe even the exhaust system itself. If you put several thousand dollars into it, you need to let your Broker know, so we can make sure you and the Insurer are on the same page in the event of a claim, that way there are no surprises.
Personal Effects Usual to a Motorcycle
Just like you invested in parts and accessories, overtime you likely invested in gear. The value of motorcycle jackets, vests, helmets, boots, and gloves, that you purchased to make your rides safer and more comfortable add up quickly.
It is wise to consider adding the Personal Effects Usual to a Motorcycle endorsement if you have found yourself with a clothing and accessories collection for your riding passion. Characteristically, the Personal Effects Usual to a Motorcycle endorsement has a per occurrence limit you can select at inception, with no deductible. It will give you peace of mind, knowing you can purchase the gear you need, and your Insurer will enable you to replace it or be paid out for its proper value.
If you have an automobile, you have likely heard of the Accident Forgiveness endorsement – but it is not just for your car! Accidents happen in any machine you use, and if you are found at-fault it can make your rates climb!
Adding this endorsement will forgive your first at-fault accident and preserve your excellent record for your renewal with that carrier.
Ready to review your motorcycle policy?
Talk to an LIG Broker today discuss ways to save and learn more!