Ins_chrome

The Cost of Chrome

Insurance Corner

by Sue Haley

I just added $10,000 in custom paint and chrome to my bike. It looks awesome! Now I have to increase my coverage, and that is going to hurt…a lot.

Insuring custom work costs around $40 – $45 per thousand dollars of customization, and that still doesn’t give me the full amount I have in the bike in case of a loss.

Everything is depreciated, just like a car. When I first got the bike, I changed out the handlebars and pipes. That’s a given with any new bike I buy. Did I add to the value of the bike by changing out parts? No, not really. The beefy bars with 7 1/2” pull back risers costs less than the stock bar the bike came with. The pipes I substituted cost about the same.

I haven’t started on the motor…yet. But I know going in that labor doesn’t count. I was lucky that the company I am insured with covers custom paint. Not all companies do. So how do I know how much my bike is worth? I could get an appraisal, or I could begin by checking with the NADA. All the bike shops have a NADA. That will give me the “base” price. Then I add the “extra” chrome I purchase. If I substitute any parts, I’ll take the price of the part I remove and find out the difference in cost of the added part. The substitution of parts can sometimes be a wash. In my case I can also add the price of custom paint. That should give me a pretty good estimate.

But, in the event of a total loss, that is not the amount I will get back.

Remember, everything is depreciated.

There are some companies that offer “replacement” coverage. Foremost Insurance will replace any new motorcycle they insure for up to two years. When you have replacement coverage, there is no depreciation. That’s something to think about when you are shopping for insurance.

Many insurance adjusters access the Internet, query local bike shops, and review the NADA price guides to determine the worth of a bike in a claim situation. Spend a little time and figure out the value of your scoot. If you want the extra accessories and chrome insured, call your agent and discuss how much you need to add in coverage.

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