Insurance - Liability v. full coverage

[svangronR6]

Alright, I need help on this one and any advice would be helpful. I know that the state requires liability coverage at a minimum by law. Also, I understand the benefits of having full coverage (comprehensive) as well.

I am a new rider who is just getting his license and I have two points on my record right now. I would like to get full coverage just in case something happens to the bike like an accident or it gets stolen, but the cost is outrageous. I've got quotes for full coverage at anywhere from $1,100 - $1,500 / year. Liability only is about $350 / year. Yeah, $1,100 doesn't sound like a lot by itself, but when you consider I pay that much for my car each year in insurance as well, that really sucks!

What do most of you carry for insurance (full or liability only)? Who is your broker and do you know of any deals (Progressive was most expensive for me)? How much do you pay a year?

 

[jafo]

Just like with cars,I carry full coverage unless it's a roach and I can easily afford to replace it if it's wrecked/stolen.I have state farm and they charge by cc,i went from a 600 to a liter bike,my insurance tripled.Glad I didn't buy a vtx 1800 or the triumph 2400.

 

[MackeyStingray]

nothing. but i don't ride on the street.

 

[thump]

I lost track of the number of times we post recommending that new riders look not just at the cost of the bike, but at the cost of bike, rider training, gear, insurance, servicing and tires before choosing.

You picked an R6- it's gonna be expensive unless you have years of clean driver history.

Consider the consequences of being under insured. If you take California minimums, the chances are that the damage in any collision you're found at fault (or partially at fault) will easily reach to 15/30 limits your insurance will pay.

If you're not adequately insured, you'll get sued.

Others have differing views, but I'd always opt to be well insured for liability at least. If you were riding a $1,000 beater I'd say maybe skip the comprehensive.

But this isn't a surprise to you, surely. You DID make inquiries about cost of insurance before you bought the bike, yes?

And you can always sell your car to pay for running the bike.

 

[NoGall]

$1,100 is not too bad for comp. considering you are 26, and have 2 points. In other insurance related threads, I have seen figures as high as $5,000 to $8,000 a year. Since you are a new rider, I would say pay the $1,100 because the probability is high that you'll get your money's worth.

If you still owe on the bike, your loan source will most likely require you to carry full coverage.

 

[Butch]

with the low cost of liability only, I can afford to replace the bike with the money I save.

I don't crash all the time though.
I just don't see how paying extra for collision can pay. If you use it, they're gonna raise your rates so high you end up paying for a whole new bike in a couple years anyho...

 

[NoGall]

I just don't see how paying extra for collision can pay.

think lawsuit...
think what other assets you are at risk of losing...

 

[Lorry]

Incidentally, it is worth paying close attention to the details on your policy about theft. A workmate found that, despite having full coverage, his bike was only covered for theft if it was stolen from a secured garage. His gated apartment complex garage didn't count.

 

[thump]

I just don't see how paying extra for collision can pay.

Are you a home owner? Do you have a business or a stake in a business? Stocks and shares? Cash in the bank? Motor car? Stereo and CD collection?

How would you feel about losing all of those and anything else you've worked for to pay for someone's medical bills?


Now, of course if you have absolutely nothing, what do you have to lose? Well, you could have your earnings attached and end up paying over your salary to someone else for years to come....

With so many 'no win, no fee' law firms around you WILL get sued if you're not properly insured.

So get properly insured. Seriously.

If you can't afford to insure it, you can't afford to ride it.

 

[Eric in Davis]

1. Nogall and thump I think you missed the boat. He said collision, not liability. I'm with Butch. Until I own a bike that is worth more than $8k, I won't be paying $1k/year for collision.

2. svangronR6 - do you know that comprensive and collision are separate policies, and you don't have to get them together? I carry liability and comprehensive on my 2 bikes. It costs my a total of $600/year, I'm 25 with a clean record. I don't carry comprehsive because I'm gambling that I'm better off paying for my own mishaps. (Insurance is just a civilized and respectable form of gambiling BTW.)

 

[Bruce]

I've got full coverage for 520 a year,there's open rider on that as well,you never know when a buddy is going to be riding your
bike,i am happy enough with that price,thats with farmers.

 

[Wolf]

Are you a home owner? Do you have a business or a stake in a business? Stocks and shares? Cash in the bank? Motor car? Stereo and CD collection?

How would you feel about losing all of those and anything else you've worked for to pay for someone's medical bills?

He was talking about collision coverage. Collision pays for YOUR bike if YOU are at fault. Regular liability coverage pays for the other person's stuff. So if you have liability without collision, you're not at risk of having your stuff siezed if you get into an accident (provided your liability coverage is high enough).

 

[jayy178]

$1100 aint bad at all with 2 points..thas pretty good actully..i pay 1050 right now with clean record..of course.im only 23.

i think u should just go for full coverage.. and get comp cause sportbikes get stolen left n right

 

[gnahc79]

isn't full coverage liability+comp+collision? Collision is pretty expensive.

 

[shuo]

I pay $485/year for liability (25/50/25) and comprehensive. I'm 30 with not that clean record - 2 tickets and 1 accident.

 

[svangronR6]

I think I am going to have to go with the liability for now. I would like complete coverage, but I don't have shit for assets that someone could sue me for.

Also, the cost of full coverage each year would be equal to 1/6 the total cost of my bike. One of my points comes off in Dec. and I can get a 6 month policy until then and reprice it at that time.

Do you know if insurance companies request a copy of your DMV record after they sign you up? Say I didn't mention the two points or they never asked...can they come back later and jack the price and make me pay? I guess I can be a cheap bastard...but car insurance, motorcycle insurance, health insurance, dental insurance, renters insurance, etc. Where does it all end???

 

[bluenoser]

The insurance company will pull up your driving record when you sign up. They get snippy if you misrepresent yourself; technically it's fraud. It's not that they'll jack your rates, but drop you altogether.

 

[levitation]

just add comp in addition to liability, that way you are covered if the bike gets jacked or something.

 

[xxxmph]

That's allot of money period. I would probably just pay for liability and uninsured motorist if I ownded the bike. Get some sliders for your bike, and ride very carefully. Don't park your bike where it can be easily stolen, always lock it up and keep a good eye on it.

 

[gnahc79]

That's allot of money period. I would probably just pay for liability and uninsured motorist if I ownded the bike. Get some sliders for your bike, and ride very carefully. Don't park your bike where it can be easily stolen, always lock it up and keep a good eye on it.

yup. The premium for collision in Cali often isn't worth it:

- say you pay $500 extra/yr for collision
- you don't get in a wreck for 3 yrs.
- you've paid $1500 so far

you claim collision, your deductible is $250, and the damage is $2000. You've paid $1750 already and they're going to raise your rates since they're paying for the repairs.

Collision IMO is for peeps in collision-prone areas (like SF) and expensive bikes/cars. Do some math to see if you need it or not.