Your classic or custom motorcycle isn’t standard. You’ve put a lot of work into preserving it or making it your own, which adds value to the bike. Instead of purchasing standard insurance, you should consider classic motorcycle insurance for more complete protection.
The Difference between the Two Types of Insurance
Standard motorcycle insurance typically gives you basic coverage for your motorcycle based on its blue book value. There is nothing wrong with choosing this policy if you have a regular motorcycle and the value is known. However, when it comes to classic or customized motorcycles, these vehicles have added value. They are like fine wines; only a connoisseur truly knows the value of the motorcycle. As a result, most insurance providers insure classic and custom motorcycles based on agreed values.
What is Agreed Value?
In agreed value insurance policies, you are in control of the amount your classic motorcycle is insured for with your provider. Once the amount is chosen, then your premium payments will be based on the figure you and your insurance provider agreed to.
An agreed value policy reduces the risk of you not being able to rebuild or replace your classic motorcycle in the event of a loss. A standard policy may underestimate the real value of your classic motorcycle, leaving you underinsured if something happens to your motorcycle.
Additionally, agreed value policies help you save money. If you are like most classic motorcycle owners, then you don’t ride your motorcycle every single day. As a result, your insurance provider may not benefit from calculating your mileage since it’s naturally going to be low. Absent extra risk factors like mileage, you pay for the insurance you need.
If you are ever in a situation in which you need to repair or replace your classic motorcycle, it’s important to know that you have enough insurance. Classic motorcycle insurance is the best option to reduce your financial burden following a loss.
Is your bike covered? Call La Familia Insurance at (888) 751-7511 for more information on Dallas motorcycle insurance.