Many motorcycle enthusiasts purchase older bikes because they still run well and are cheaper to purchase than equivalent new bikes from the same manufacturers. Antique bike collectors also purchase these classic bikes. If you purchase a classic motorcycle, you need classic motorcycle insurance. This insurance covers damage and theft so that you never have to worry about covering the costs of restoration if someone hurts your classic bike or decides to steal it. You may also find that classic motorcycle insurance is cheaper than standard insurance for your vintage bike because you don’t need certain coverages. You need to consider several factors when purchasing classic motorcycle insurance.
When purchasing your classic motorbike insurance, consider whether you intend to use the bike. Some motorcycle collectors use classic motorcycles as display pieces and never intend to ride them; if so, you only need insurance for theft and damages; you don’t need liability insurance. Many bikers, however, purchase their motorcycle in order to show them off; if you intend to drive your classic bike, you will need liability insurance. This type of insurance covers you if you have an accident while riding your motorcycle. Liability insurance covers property damage to other people’s property as well as bodily injury to the other people involved in an accident. However, keep in mind that many insurance companies expect you to drive your classic bike less often than your newer bikes; you may be limited to occasional use in order to get classic bike insurance.
You probably will not have to get collision insurance even if you plan to drive your classic motorcycle sometimes. Collision insurance allows you to repair your bike if it is damaged in an accident. However, some classic motorcycle collectors take pride in dings, dents and other signs of minor collisions because it makes the bike appear more used. Thus, you might not want to repair damages. In addition, since classic motorcycle are so old, standard collision policies won’t cover most repairs. If your classic bike sustains major damage requiring repair, you can usually buy used parts fairly cheaply; the money you would ordinarily spend on collision insurance could be put into savings to use in the event you need to purchase parts for your classic motorcycle.
Before determining what type of insurance to purchase, you also need to make sure your insurance company considers your bike a classic. Classic motorbike status doesn’t have to do with how high an opinion the insurance company has of that kind of bike; it has to do with the bike’s age. Most insurance companies require a bike to be more than 25 years old before considering it a classic, although some companies consider bikes that are only 15 years old to be classic bikes.
You’ll need to find an insurance company that specifically covers classic bikes if you want to get insurance on your classic motorcycle. If you purchase only a standard insurance policy on your classic bike, you’ll only be insured for the bike’s current value. This value may not reflect what the classic bike is worth because of depreciation. Bikes tend to lose value over time, and if your bike is 25 or more years old, it may be worth a lot less than it was when it was new. Most classic motorcycle insurance companies cover a flat amount regardless of depreciation.
For example, if you have a classic bike that was originally worth $100,000 but is now worth only $10,000, standard insurance policies will only reimburse you for $10,000 worth of damage. Most classic bike insurance companies, however, will cover you for the entire $100,000 worth of damage–or, if not, an agreed-upon amount that is closer to the bike’s original value.
Some standard motorbike insurance companies offer classic bike insurance in addition to standard insurance; ask your insurer. It may be in your interest, however, to purchase insurance from a company that specializes only in classic motorcycles. That way, there’s no confusion over what your insurance policy covers. You are also likely to get better service from a company that specializes only in classic motorcycles because this type of insurance company is more familiar with the needs of classic bikers than a company that insures both new and vintage motorcycles.