New Motorcycle Replacement ~ Motorcycle Insurance

New motorcycle replacement insurance, sometimes referred to as total loss coverage, can come in handy if you have a new bike!

This type of motorcycle insurance coverage typically covers motorcycles that are no more than one model year old (or two model years old, if you’re renewing your coverage).

Below is information about total loss coverage for a motorcycle, what most motorcycle insurance companies will cover with it, what isn’t covered, how much it costs, and how to choose the right coverage limits.

New Motorcycle Replacement Insurance
Total loss coverage is designed to make you whole, in the event that your new motorcycle is totaled or stolen within a certain period after you purchase it.

What Does New Motorcycle Replacement Insurance Cover
With total loss coverage, the insurance company will replace your totaled or stolen motorcycle with a new model of the same make and type (or comparable). Without this type of insurance, you’re typically only given the current value of the motorcycle, which can be significantly lower than its original purchase price (because of depreciation). Replacement motorcycle insurance eliminates this gap.

Motorcycle Totaled: If your motorcycle is a total loss, the insurance company replaces your motorcycle with a new model of the same make and type.

Motorcycle Stolen: If your motorcycle is stolen and isn’t recovered within a certain period of time, this coverage ensures that you receive enough insurance money (minus your deductible) to pay for a comparable replacement.

What Doesn’t New Motorcycle Replacement Insurance Cover
With new motorcycle replacement insurance, the insurance company provides funds to purchase a new motorcycle of the same make and model (or comparable) if your bike is totaled or stolen.

It’s important to note, however, that total loss coverage typically doesn’t cover:

• partial damage or minor repairs (you’ll need collision insurance or comprehensive insurance)
• customizations and upgrades (you’ll need specialized parts, equipment, and gear insurance)
• personal property (it just covers the motorcycle)
• standard depreciation (once your motorcycle passes the age limit on your policy, the replacement guarantee expires)
• deductible (if you make a claim, you’ll still need to pay your deductible)

Cost Of New Motorcycle Replacement Insurance / Total Loss Coverage
The cost of total loss coverage varies from company to company, but the difference between this coverage and standard coverage is typically based on the value of your new motorcycle.

How To Choose The Right New Motorcycle Replacement Insurance Limits
There’s no need to choose a coverage limit for this type of insurance – it will be the amount that you paid for your new motorcycle.

Check With Your Insurance Agent Or Company
Please note that the information provided above is for informational purposes only. For the most accurate, up-to-date, specific information, check with your insurance agent or insurance company.