New Bike Purchase - should I take collision or not - $157.00 extra?? | GTAMotorcycle.com

New Bike Purchase - should I take collision or not - $157.00 extra??

nikos1965

Well-known member
Just put down a deposit for a new Bike. Very excited about it and looking forward for delivery day. I got a quote from my insurance to insure it.

All Inclusive: 841.00 yr

No Collision: 684.00 yr

Its a difference of about $160. The bikes value after taxes out the door is $5750.00

Im a fairly new rider and am unsure what to do. Would like to save a few bucks but is it worth it?
 
is it paid off, or a loan on it, if a loan/lease etc, you will need Collision no matter what

no if it's paid for, the choice is yours, you have to assess if you will need it or not, perhaps have it for the first 2-3 years, and then take it off, as the bike depreciates, and cost of repairs will be easier to pay for on your own, also what is your deductible, that could be the variable right there if you take collision or not...

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Yes.
1. You may be required by your finance company (if you finance) to have full coverage
2. Are you prepared to pay out of pocket to repair your bike if you get into an at-fault accident.
 
$160 a year is small cost to protect a new bike.
Unless you're comfortable to be potentially out of pocket for total value of repairs should anything unfortunately happen...
 
+1 full for the first few years. Then dropped it after. The savings could pay for a few bikes the longer you ride and don't have an at-fault.
 
$160 bucks to protect your $6000 purchase? Pretty easy decision. Let's say you for sure don't plan on getting in an accident.....even if you get into one every twenty years (even not your fault) it is worth it...you'll pay $3200 over the time to get back a declining balance. For 5 years at least you want collision. Once the bike is worth $2000 or less I guess it is up to you. But in terms of straight math if you think you have a 5% chance of having an accident over any period the insurance is worth it.
 
$160 bucks to protect your $6000 purchase? Pretty easy decision. Let's say you for sure don't plan on getting in an accident.....even if you get into one every twenty years (even not your fault) it is worth it...you'll pay $3200 over the time to get back a declining balance. For 5 years at least you want collision. Once the bike is worth $2000 or less I guess it is up to you. But in terms of straight math if you think you have a 5% chance of having an accident over any period the insurance is worth it.
It's a no brainer if your insurance company offers accident forgiveness -- otherwise I'm not so sure.

If you have an at fault crash without insurance, you're out the cost of repairing the bike. A total loss would get you a maximum of $5360 after paying the cost of insurance and deductible. If you crashed in October with 4K on your bike, you would probably get $3360 as the bike would have depreciated considerably in the eyes of your insurer.

Without collision you get nothing. If you didn't hurt another vehicle or person, you are also not likely to be filing a claim so your insurance will be same or lower next riding season. The tricky part is the claim -- after collecting on insurance, you become riskier to insure and your premiums will certainly jump. Expect 2 and 4x increase in the next few riding seasons. Premiums will gradually decline, but it's likely you'll have paid back way more than your got in your claim. Since you're a new rider, I'm guessing a premium jump of at least $1000 a year after a claim.

Perhaps a few folks can chime in with their 'after claim' experience.
 
Maybe i am wrong...but i don't think the insurance company charges the deductible on a total loss or if you are not at fault? And if you are charged in the accident you are going to see your insurance jump if you claim or not. And most insurance companies have replacement value for at least 2 years....so you'll get the full cost of the bike for the those years.
 
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Maybe i am wrong...but i don't think the insurance company charges the deductible on a total loss or if you are not at fault?

Not at fault you don't pay deductible. If you are at fault and don't have accident forgiveness it doesn't matter if it's a total loss, you pay deductible. MM accident forgiveness waves deductible in at-fault crash (I don't know if other companies do similar).
 
thanks everyone, good solid advice. I will remember to ask them if I have 2 year replacement on my coverage, I would hope so right. Collision it is.
 
My insurance company wanted 500+ a year for collision on a bike that i bought for 4 grand. Needless to say, I don’t have collision.
 
It's a no brainer if your insurance company offers accident forgiveness -- otherwise I'm not so sure.

If you have an at fault crash without insurance, you're out the cost of repairing the bike. A total loss would get you a maximum of $5360 after paying the cost of insurance and deductible. If you crashed in October with 4K on your bike, you would probably get $3360 as the bike would have depreciated considerably in the eyes of your insurer.

Without collision you get nothing. If you didn't hurt another vehicle or person, you are also not likely to be filing a claim so your insurance will be same or lower next riding season. The tricky part is the claim -- after collecting on insurance, you become riskier to insure and your premiums will certainly jump. Expect 2 and 4x increase in the next few riding seasons. Premiums will gradually decline, but it's likely you'll have paid back way more than your got in your claim. Since you're a new rider, I'm guessing a premium jump of at least $1000 a year after a claim.

Perhaps a few folks can chime in with their 'after claim' experience.

I don't know about your insurance, or the OP's quote, but mine covers original value, not depreciated. I forget the actual term for it, but it was a cheap option, so I took it.
 
It's all about risk management. The overall odds are that you will be ahead not to insure but can you financially and emotionally take the $6K hit if you screw up?

You don't mention the bike but is it a thief magnet?

Where will the bike be kept? Secure or condo garage?
 
Keep in mind that a hit and run accident (IE, someone knocks your bike over in a parking lot and leaves the scene), although considered not at fault so long as it's reported to the police WILL cost you the deductible fee regardless if the offender is not found.

So, in this scenario (which face it, isn't uncommon when it comes to motorcycles, there's an argument to be made for paying a few extra dollars a year for a LOW deductible. Paying $250/$500 to get your bike fixed after someone wrecked it on you and drove away is bad enough, but paying $1000 or more in the same scenario is going to sting a lot more.
 
I don't know about your insurance, or the OP's quote, but mine covers original value, not depreciated. I forget the actual term for it, but it was a cheap option, so I took it.

Waiver of depreciation (OPCF 43/43A) -- I had it on mine until I moved the bike to another provider. Cost me $100/year, and meant full MSRP back if written off.

Out of interest who are you with that is providing it for a motorcycle? When I called around it seemed only TD MM and Aviva would put it on a bike, but most will put it on a car.
 

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