Protecting Your Custom Motorcycle Investment
I have represented many bikers involved in accidents who had their custom motorcycles (especially Harley-Davidsons) totaled in an accident. I have found that many bikers assume that if they were not at fault, the other driver's insurance company automatically pays them the base value of the bike plus the full cost for every piece of chrome, accessory and the custom paint job. The problem with that assumption is that under North Carolina law the other driver's insurance company is only obligated to pay the fair market value of the motorcycle as of the time of the accident. Fair market value is the amount an average buyer would have paid for the custom motorcycle before the accident. An insurance company for the other driver may contend that an average buyer generally pays less for a custom motorcycle than the actual amount of money invested by the biker in that custom motorcycle. These insurance companies (and some dealers) have explained to me that the more a motorcycle is customized, the less chance there is of a prospective buyer liking every piece of chrome, accessory, etc. on the motorcycle. As such, these insurance companies will often value a custom motorcycle less than the biker's actual investment of money in the motorcycle.
You can, however, protect yourself from this situation. You need to talk to your insurance agent to make sure your motorcycle, the chrome, accessories, and the custom paint job are adequately insured under your own motorcycle insurance policy. By doing so, you have the option of using your own insurance if the other driver's insurance company is not willing to give you acceptable value for your custom motorcycle. I understand that no one likes using their own insurance if they are not at fault in an accident. Sometimes, however, you may have no choice because the other insurance company has determined that the fair market value of your motorcycle is much less than your investment.
This type of insurance under your policy varies from insurance company to insurance company. Your insurance agent can talk with you about making sure that your custom motorcycle is adequately insured. There are several insurance agencies that specialize in motorcycle insurance and advertise in Full Throttle magazine. Those agents have experience with the type of insurance under your policy that I discuss in this article.
Whatever you decide about insuring your motorcycle, I would encourage you to keep all records regarding the purchase of your motorcycle and all receipts for any chrome, accessories or custom paint job. I would also suggest that you have up to date photographs of your motorcycle.
If you have any questions about this article or damage to your motorcycle from an accident, please do not hesitate to call me at (800) 942-1191.
-Gary Poole
"On the Side of Those Who Ride"
