To protect yourself in the event that your motorcycle is stolen, you must have comprehensive coverage. Other coverage options, such as liability and collision, do not include theft protection. If your motorcycle is stolen and you have comprehensive coverage, you will be reimbursed for the cash value of your motorcycle. This doesn’t mean they will pay you what you paid for the bike, or what a brand new version of the same make and model is worth, which is a common misconception. Cash value means they will pay you what your bike is worth at the time it was stolen, taking into account the year, make, model, mileage, and other factors that affect its value, much like if you were trying to sell it.
If you are financing your motorcycle and owe more on the bike than it’s worth, you will still have to pay off the balance of your loan. Some insurance companies, such as Allstate, offer gap coverage which you can purchase in addition to comprehensive coverage. Gap coverage will pay the difference between the cash value of your bike and what you owe on it. In other words, it will pay off whatever was left of your loan.
Custom parts and equipment are popular with motorcycles, and depending on your insurance policy, you may or may not be reimbursed for these in the event of theft. Comprehensive coverage plans will usually only cover up to $1,000 or $3,000 worth of custom parts, depending on your provider. Many major insurance companies, such as Geico, Progressive, and Nationwide, offer plans that will cover the cost of your custom parts up to $30,000, depending on your provider. To find out if your motorcycle customizations will be covered, though, be sure to speak with your insurance provider.