Owning a vintage bike is the dream for many people, but it is important to choose the right type of classic motorcycle insurance to protect your investment. There are several things you should know before you purchase insurance for your bike.
Which Motorcycles Qualify?
The terms “vintage” and “classic” sometimes have specific meanings when they are used to discuss cars and motorcycles. Typically, a classic motorcycle is defined as being 25 years old or older. If your bike has been customized, you may need to talk to your insurance agent about whether you need classic motorcycle insurance coverage or a more specialized type of policy.
What Does the Motorcycle Insurance Cover?
With new motorcycles, the value of the bike depreciates as time goes on. With classic bikes, this isn’t the case. You will need to have your bike insured for the agreed upon value, which won’t go down over time. The insurance company will ask you for the value, and the insurer will then confirm this number. The result is your agreed upon value. If your bike is stolen or totaled, this is the value of your coverage—minus the deductible. If there are any changes to the status or condition of the motorcycle, you will need to update the value with your carrier.
Custom Parts and Equipment Coverage (CPE)
This coverage is essential for classic motorcycles. It covers the cost of any custom parts or model-specific parts for your bike. If your motorcycle is damaged in an accident, you won’t have to worry about the cost of replacing these parts. It can be hard to replace some of the more rare parts, which is why this coverage is so important. CPE coverage is typically offered as an add-on for your basic policy, so be sure to ask your insurance carrier about adding it to your policy.
Where to Get Classic Motorcycle Insurance
Not all of the major insurance carriers offer this type of coverage, but there are many that do. Progressive. Nationwide, Safeco, Esurance, and Geico all offer policies for classic motorcycles. There are also some boutique insurance companies that only cover vintage cars, trucks, and motorcycles. As with any type of car insurance, make sure to compare rates and coverage options before selecting an insurance carrier.
Choosing the right type of classic motorcycle insurance isn’t hard if you know the basics of what you will need. Once you understand this type of coverage, you can begin to compare policies and costs to determine which carrier is best for your needs.