Can insuring a custom bike be confusing? What coverage do you need? Should you have an appraisal done? What is the agreed value? These are all the questions that come up, and there is very little available information on the web and more. Many agents have little experience selling policies for modern factory-spec bikes, let alone anything else.
We will offer you a tool to discover the optimal coverage in a single location by addressing numerous facets of the procedure, aiming to alleviate your anxiety and maintain a stable blood pressure.
Sure, we have compiled a list of custom categorized bikes so that you may have a different perspective than someone else.
The phrase “custom motorcycle” encompasses almost any bike that deviates significantly from its factory stock condition. Whether you require specific insurance for your bike depends on its value and the need to replace it. This is where an appraisal and agreed value become important factors.
Custom Motorcycle Coverage
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Who Insures Custom Motorcycles?
Here is a short list of companies that offer this type of coverage. Additionally, there are several small specialty insurers that provide insurance for vintage custom bikes and custom motorcycle insurance. Many of the top insurance companies in the United States offer insurance for custom motorcycles.
If your frame has an MSO (Manufacturer Statement of Origin) instead of a VIN, some of the larger insurers like Allstate. can look these up in their systems. Keep in mind that this is a short list of the companies that offer custom motorcycle insurance. Can you imagine how much time you would have invested in shopping around for the best coverage? That’s why we offer a convenient tool where you can request and compare quotes from insurers in your area…online!
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Agreed Value for Custom Motorcycles
To completely substitute the ride, it will require you and your insurance company to pay the agreed-upon cost. It might be beneficial to obtain Agreed Value coverage to ensure you receive the full worth following an incident or theft, particularly for those components that would require manual craftsmanship if they ever need replacement. If you possess a personalized motorcycle, you are aware of its value surpassing the combined worth of its individual elements.
When you modify and upgrade your bike, the Value Agreed can be increased. If you keep the bike, the insurance company agrees to pay out the coverage amount minus your salvage value or deductible in the event of a total loss. They may request photos of the bike or receipts for labor and parts. When submitting your application, make sure to confirm the amount with the insurer’s underwriters to indicate the value of your bike accurately.
Custom Parts and Equipment Coverage (CPE)
Vintage motorcycles, which are at least 25 years old, generally have agreed value policies. In the case of more recent motorcycles, an insurance company might offer a variety of coverage options to protect your aftermarket components and alterations. It might be necessary to obtain Custom Parts and Equipment Coverage (CPE) and/or Additional Parts and Equipment Coverage (ACPE), in addition to the standard comprehensive, collision, and various medical payment insurance policies.
According to Allstate., custom components and equipment coverage (CPE) is an additional feature to your policy that provides coverage for….
“Custom parts or equipment; devices; accessories; and any enhancements and changes other than those installed by the original manufacturer that alter the performance or appearance of your vehicle and are permanent in nature.”
The coverage is distinct from your collision and comprehensive coverage, but it may have the same deductible.
In essence, this opens up an avenue for you to pay the insurer a high price. This coverage may be a subset within CPE for some companies. The usual starting amount can vary but is $1,000. ACPE (additional coverage for equipment and parts) is only added to your policy if you have a pre-determined invested value in specialty custom parts.
Appraisals for Custom Motorcycles
The fair market value, also known as the “A.C.V.” (Insurance company lingo for Actual Cash Value), is the current value of the bike as determined by an appraisal. While it is important for insurance purposes, the appraisal is not necessary for settlement, estate, evidence, or equity purposes. In some cases, both the fair market value and the cost to modify your bike may reflect a cursory appraisal.
These are referred to as comparative options. The quality, design, brand, and production year are determined by comparing them to other bikes to assess your build. The appraiser will then determine the value of the bike by evaluating the changes and aftermarket components primarily utilized in the appraisal. Multiple factors are considered when evaluating a custom motorcycle.
Generally, an evaluation is not required unless it is a kit or completely custom-made bicycle.
More Information
If you are seeking inspiration for your personalized construction, we urge you to browse through the selection of bespoke motorcycles that we have showcased on the blog. This thread on the S&S Cycle forum could be beneficial if you possess a kit construction or framework with an MSO.