Insurance coverage required when financing
- Thread starter dubz
- Start date
RockThis52
Well-known member
Collision is required
x3, full coverage is mandatory - the finance company will require proof of such (and will occasionally check to ensure it's still in place) before providing the funds to the dealer.
This is the main reason many people opt to buy an older/used bike (that they can buy outright vs finance) for their first bike when insurance is expensive enough for just liability, vs being required to carry full coverage at an even higher cost. Doing so is also a good way to avoid a huge depreciation loss on a newer bike if you decide after 1 season that riding isn't for you and you discover that you're upside down on the value of what the bike is worth to sell, vs what you owe on it.
This is the main reason many people opt to buy an older/used bike (that they can buy outright vs finance) for their first bike when insurance is expensive enough for just liability, vs being required to carry full coverage at an even higher cost. Doing so is also a good way to avoid a huge depreciation loss on a newer bike if you decide after 1 season that riding isn't for you and you discover that you're upside down on the value of what the bike is worth to sell, vs what you owe on it.
conundrum
Well-known member
But if people did that, we wouldn't have Ninja 300Rs with asking prices of $10,000...or the occasional $15,000-20,000 used GSXR-600 or CBR600RR... lol
Exactly. People forget that most places that offer financing on a used bikes are higher priced than the used market right out of the gate, and if it's a brand new bike there's a depreciation hit the second you ride it off the dealers lot. That's money you'll never get back.
