How much coverage do I really NEED for a motorcycle?

Question

Next year I'll be selling my 2006 SV650 and getting either a left over 08 or new 09 Triumph Speed Triple.

My current insurance is approx $600 a year.

I went around getting quotes from Progressive and Geico, and depending on the options I choose I'm looking at between $500-$4000 per year for coverage.

My question is, exactly how much coverage should I have? the single most expensive option seems to be collision coverage, and is the main one I am interested in. If I decline Coll I can pretty much get the maximum coverage across the board (300,000 per person medical coverage on myself or anyone I may be in an accident with, 100,000 for loss of others property, etc) for about what I pay now on my SV650.

However the second I add collision coverage that price jumps by thousands depending on my deductible.

With a $500 Coll deductible it adds $1000/ year. With a $50 deductible it adds like $3000/ year.

Now the bike itself, brand new only costs $10,400 (full MSRP).

I'm not stupid enough to pay 1/3 the cost of the bike a year on insurance (which I likely will not use). It would be less expensive for me to just pay for my own damages.

I'm not really sure what my full coverage is right now, but I'm betting my coll coverage is c**p. Do I even really need collision? I mean considering the cost of coverage, I'm thinking it would be wiser (and far more economical) in the long run to simply hold myself responsible for any damages that result from a collision.

I need opinions/info from people who know more than I do about this as it relates to motorcycles.

Answer 1

How much coverage you need depends on how much of a financial hit you are willing, and able, to take. Full coverage (comprehensive) covers a multitude of potential losses such as a stolen bike, burns up, flooded, gets hit, you have to lay it down, hail damage, a piece of highway debris gets kicked up into the bike, a tree falls on it, etc., etc. One of the problems with dropping (or not getting) comprehensive coverage is that many causes of loss that comp coverage will address are causes outside of YOUR control. Even if you are a careful driver, the actions of others can cause you grief. So, weigh carefully the price-versus-I'll pay for it myself decision. Safe biking!

Answer 2

Also as a bike owner, I would prefer to have full coverage on my motorcycle at all times. You have much higher chances in getting in a accident. What if you park your bike outside of a store and your bike gets hit by a uninsured car or your bike falls down from the asphalt shinking in you kick stand, you will be s***w if you only have half coverage. You have to pay for it now or later and usually later will cost more. Hope this helps.. Ride Safe and Smart.