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Discussion Starter #1
Time for me to get my yearly insurance renewal. And lucky for me, Massachusetts has finally (slightly) relaxed its socialist grasp on insurance rates and has finally allowed carriers to compete, so I'm shopping around for the best price. (For those who've never lived here, for the past few decades Massachusetts has set insurance rates for all carriers, making competition meaningless and chasing out all the big carriers like Geico, Progressive, Allstate and State Farm.)

Anyway, since I no longer have a loan on my bike, I'm free to only get the mandatory insurances. I do want to keep the optional Comprehensive in case it gets stolen, but I'm not sure collision is worth it. I could save 300 or so bucks I figure off my yearly premium if I don't have it. The deductible is 500 dollars already, so I'm trying to figure what kind of situation will cause me to get more than 500 dollars worth of damage but not so much that the bike is a total loss.

Anyone else have it? Anyone else gotten rid of it?
 

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look online for the price of the parts that are likely to be damaged in a collision, then figure in labor. it may not take long to get to 500.00.
 

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move to NH, cancel all your insurance:rolleyes1:

it's a gamble... I figger it it's worth it for comprehensive, it's worth it for collision, I carry full coverage when none is required, but my bike is worth almost 20times what my annual premiun is, and that's with 100 deductables on collision and comprehensive

hard to give advice on gambliing



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Not the way I drive!

For me, the answer is an emphatic NO.

I carry liability insurance only on my 2002 Chevrolet Venture, my 2006 DL650, my 1979 CB750, and my 1965 CB77. In years past, I have not carried collision coverage on my assorted minivans and motorcycles.

Result: If the van or the Wee-Strom is destroyed, I can use the money that didn't go for premiums, buy a replacement vehicle, and still have money left over. Understand that I bought the van used, for $9000, so I was never driving a $35000 vehicle with no collision coverage.

In every insurance situation, the company must make a profit. I am emphatically among those who have fewer collisions than the average. If I bought collision coverage, the insurance company would make a substantial profit from me. I do not let that happen, and so long as I refrain from using my vehicles to hit things, the profit will stay with me.

By the way, I drive the van 12000 miles per year, and the Wee-Strom 14000 miles per year. The Hondas do not get so much exercise, and you all know exactly why! I haven't hit anything since 1966, and I haven't had a ticket since 1995 (rapping knuckles gently on skull). I think you can see that I am making a sound financial decision by risking the potential cost of replacing a costly vehicle.

Conclusion: this is a personal decision, and you need to look at your history and analyze your premiums, as well as the benefits, if any, from your coverage in the past. Insurance companies look at those figures, and then they adjust your premium so that you are likely to profit them.

You pay the $; you make the choice. Good luck in your analysis.
Keith
 

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Discussion Starter #5
I hear ya. The problem is, my current quote is something like 900 bucks a year for full coverage. Which itself is saving me 90 bucks from my previous company, and add to that the 500 or so I'll save if I switch my car's coverage over, it's not too bad, I suppose.

But I really hate living in Boston sometimes...2100 bucks yearly for car and motorcycle combined, and that's not even including my renter's insurance!
 

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I thought collision was not worth it.....until my buddy dropped his bike.
$5000 in damage and the bike was ride-able (we finished a 1,200 mile trip).


I am lucky that Comp/Collision/Liability only cost me around $210 so its a no brainer.

Now on my cars I gamble and only have Comp/Liability (my cars tend not to fall over :rolleyes:)
 

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I generally don't carry collision or comp. It's a very individual decision though, you have to weigh in a lot factors:

Cost of insurance
Amount of deductible
Book value of the bike
What you think the odds of your filing a claim are.
Your tolerance for risk.
Your attitude towards the bike. Just a toy, or essential transportation?
Can you do repair work yourself?
Can you live with a few scuffs on the bike, or would you want it perfect again?
Your overall financial situation.

and probably some others. :)
 

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I carry collision on my 2 most expensive cars, but not on my bikes. For the bikes it's liability and comprehensive only. I gave a lot of thought to dropping comprehensive, but decided I couldn't stand the psychological pain of having a bike stolen without getting some payoff. Also comprehensive covers animal collisions, and I'm more likely to hit a deer than another vehicle.

Check Markel's Bikeline division, which is who I use. Rates are very good. Not sure how good they are on claims because I've never had one, but they do advertise a lot so they must be pretty big.
 

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I would recommend talking to the insurance company and finding out what their policy is for determining value of the bike, and what % they use for totalling. This may help you in making a decision. I.e. if they value your bike at $2000 (just picking a number out of thin air), and use a 75% threshold for totalling, you'd only need $1500 in damage to total. Now, depending on how much the premiums are, you can make a more informed decision. Also, see if you can get any current info on the salvage value of the bike, as it can be worthwhile buying the bike back from your insurer and fixing it up yourself, if you plan on keeping it.

I've done this with a Miata, though it was stolen and recovered (in much worse shape), not wrecked.
 

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insurance

If I drop my collision I will save $123, which is about 40% of the entire coverage. If I have a collision all I have to lose would be some plastic to more than make up for that.
 

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Insurance is about trading volatility for stability.

You pay the company a set amount, plus the possibility of a deductible payment. For this, the company gets its operating expenses and some profit out of you. That is typically about 30-35% of the premium you pay.

So, how do you look at the question? Purely a financial decision.

If your bike is in a wreck, here are the things to consider.

1. What is the ACV of your bike? This is the "Actual Cash Value." It is determined by trying to make an assessment of the condition of your bike pre-crash, and asking what you could get for it in the marketplace. Keep all your maintenance records etc. as evidence that it was in great shape.

2. Given that #1 is the most you will get out of the insurance payment, are you willing to take that hit? You won't get a new bike, so the question you have to ask, is are you willing to accept the cost of the new bike? A DL650 used can go for 4-6k depending on condition/extras etc. So, would the insurance money be enough to offset the cost and let you pick up a new bike?
Most likely not. So focus now on the trade-off. You will be paying some amount ($130?) a year for the coverage. If you put that money in the bank, it will take a long time to make up the cost of the bike.

3. If you do get the coverage and have a crash, the coverage will come in handy, but your insurance rates will go up by potentially 15-20%. Is the additional future cost worth the $3-4000 you would get out of a total?

My personal opinion is yes, its worth it for me, because my coll. coverage costs $70 a year and I have an '08. 4 years from now, I may change my mind, as the ACV goes down to a level that I don't think I'm really getting value out of the trade anymore.

So, basically you have to answer the question for yourself. Your agent/company may be able to help by providing the basis of their ACV determination, but in the long run, its your choice...do you value the tradeoff, or would you rather risk the large loss, in favor of saving dollars on the premium.

Best of luck with your decision.
 

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Discussion Starter #12
Most likely not. So focus now on the trade-off. You will be paying some amount ($130?) a year for the coverage. If you put that money in the bank, it will take a long time to make up the cost of the bike.
Christ, I wish I was only paying 130. Right now the collision benefit I've been quoted is $319 dollars, out of a total yearly premium of $992 dollars. Collision would be a pretty nice chunk of change removed from that yearly cost.

So, I guess I'll have to call up the carriers again and see what they consider my bike's worth, and at what point do they consider it "totaled". A little more information might make the decision easier, I suspect.
 

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I just got a wee and have only 2 years riding experience and no training courses. This is my only insurance with Geico as State Farm was twice as expensive to add this bike even though i have 3 cars, bike and home with them.

I opted only for the following:
The details of the coverages and premiums for 2007 SUZUKI DL650K V-STROM are $126/year total:

Bodily Injury Liability(BI) 50/100 $47.00
Property Damage Liability(PD) 50M $17.00
Medical Payments(MED) REJ $.00
Underinsured Motorist(UIM) REJ $.00
Uninsured Motorist(UM) REJ $.00
Comprehensive(COMP) 250 $62.00
Collision(COLL) REJ $.00
Towing(TOW) REJ $.00

Collision would have cost me 374 for 500 deductible and 282 for 1000 deductible.

The biggest question I would ask is if i had an accident and had to make a claim, how much will insurance go up. Would I even make a claim of 1000 dollars with 500 deductible, i think the rates going up from that one claim will outstrip making the claim. So I would not likely make a 1000 dollar claim with 500 deductible. And would that effect my other policies if they were from the same company. I dont think so but not sure as the claim goes with the person not the vehicle, meaning the car that I am primary on would likely go up also?

I hate insurance.

Steve

So I said no
 

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<snip>
The biggest question I would ask is if i had an accident and had to make a claim, how much will insurance go up. Would I even make a claim of 1000 dollars with 500 deductible, i think the rates going up from that one claim will outstrip making the claim. So I would not likely make a 1000 dollar claim with 500 deductible. And would that effect my other policies if they were from the same company. I dont think so but not sure as the claim goes with the person not the vehicle, meaning the car that I am primary on would likely go up also?
<snip>
Ask your agent the following questions:
1. What dollar threshold is required before an accident is considered chargable?
2. Assuming I did have a claim that would be considered chargeable, what would be the impact to my premium...how long would this stay in place?

As to the other vehicle thing...if you have all your vehicles insured with the same company, any violation/accident gets tied to the vehicle for which the violation/accident occurred. The real question you need to ask, is "If I then sell my motorcycle, does the accident then transfer over to another vehicle?"

(sorry for the sloppy spelling)
 

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I figure that since my bike is new and I plan to survive any accident, collision is a wise choice. It's a small investment compared to the cost of a major rebuild after a wreck. If the concern is rising rates after a claim you can always adjust your coverage after the fact to get what you need and lower your rates at that point. A few hundred dollars to insure many thousands is a good idea. Just my opinion.

SS
 
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