Collision Coverage Insurance on a Motorcycle - Do I need it? by Attorney Fran Haasch

I would like to start this article by saying thank you and Happy Holidays to all the loyal readers of Born To Ride; my sincerest wishes for health, prosperity and happiness in the coming new year.

Last month’s article addressed potential problems if you were involved in a motorcycle accident and the driver causing the accident did not have the appropriate insurance coverage to repair the property damage to your motorcycle

So, what can you do to protect yourself in this situation? Collision Coverage. Collision coverage on your own insurance policy will pay for the damage to your motorcycle or vehicle. When you are purchasing this coverage please carefully consider the deductible that you choose they generally are in amounts of $250.00, $500.00 or $1,000.00. If you decide to use your own insurance for your Property Damage (PD), your deductible will be subtracted from a “reimbursement” check you are issued to cover the damages. Some insurance companies will subrogate against the at-fault insurance company, which means your insurance company will attempt to collect your deductible for you which can take up to several months. If you have custom parts on your motorcycle, i.e. pipes, chrome accessories or custom paint, you may want to purchase extra insurance coverage in addition to Collision. Custom Accessories or Optional Equipment coverage will cover these “extras”. As a rule of thumb, figure out how much you have invested in customization to your motorcycle, for instance, if you have $5,000.00 you would want to purchase $5,000.00 in custom coverage.

If damages to a motorcycle or vehicle are approximately 80% of the value of the motorcycle or vehicle the insurance company is allowed, under Florida Law, to declare that motorcycle or vehicle a total loss. Insurance companies pay book value, not necessarily replacement value or what you might owe to your lien holder. What can you do to protect yourself in this situation if you owe more than the bike is worth? Gap Insurance, which will be the topic of next month’s exciting article.

If you have any questions about your insurance coverage or need any additional information regarding a motorcycle or automobile accident please contact our office at (727) 784-8191. We will be happy to answer your questions free of charge. You may also find any back articles on our website under the Born To Ride tab.


Attorney Fran Haasch
Palm Harbor
www.lawfran.com