howlinhoss Posted July 22, 2014 Share Posted July 22, 2014 Hey all, I wanted to get your opinions on choosing deductible amounts when structuring your motorcycle insurance policy. Personally at the moment I have my deductibles set to $500 and I am playing around with moving up to $1000. Here is my thinking: I am not going to claim a small accident or drops when repairs can be done by myself. This keeps my annual premium lower. I think the only time you should make a insurance claim is when you go down and your bike is totalled. What deductibles do you choose and for what reason? Link to comment Share on other sites More sharing options...
Premium Member V8titanpwr Posted July 22, 2014 Premium Member Share Posted July 22, 2014 It's all down to personal choice really. I have $100 / $100 on my Shadow, but I also only pay $97 a year. As i'm looking around at insurance currently, the companies with the best prices don't really change much with $1000 deductible vs $500, i mean we are talking $5 a year, not even worth it. For me personally, i'm financing the bike (29, building my credit) so I would like a lower deductible. Even if I took the comprehensive deductible to $100 it only goes up $20 a year which is the route I will most likely take as it's a no brainer. Keep the rubber side down and the shiny side up. Link to comment Share on other sites More sharing options...
howlinhoss Posted July 22, 2014 Author Share Posted July 22, 2014 Good point V8. I overlooked the actual price savings. I was assuming it would be a substantial amount saved for the fz-07. Link to comment Share on other sites More sharing options...
missourifz07 Posted July 22, 2014 Share Posted July 22, 2014 Typically the premium savings isn't substantial enough to justify the extra out of pocket expense for the higher deductible. I usually advise clients to calculate the savings of the higher deductible premium over the time period of years owned. Then compare that to the difference in deductibles out of pocket at time of claim. It paints a pretty clear picture. Link to comment Share on other sites More sharing options...
MeanMug Posted July 23, 2014 Share Posted July 23, 2014 Typically the premium savings isn't substantial enough to justify the extra out of pocket expense for the higher deductible. I usually advise clients to calculate the savings of the higher deductible premium over the time period of years owned. Then compare that to the difference in deductibles out of pocket at time of claim. It paints a pretty clear picture. Thanks for the tip ! Glad you are here! RRokay Raggie Link to comment Share on other sites More sharing options...
Premium Member howworkclutch Posted September 4, 2014 Premium Member Share Posted September 4, 2014 It's easy to exclude the possibility of you being in a major accident. It's also dumb. Really dumb. Everyone who's ever totaled a bike had no intention of totaling a bike. That kind if thing happens. It can happen to you. So don't do your banking on the idea that you might someday drop your bike in a parking lot and half to pay for new bar ends and mirrors yourself. Most towing services/wreckers are going to get you for $250. That's your deductible. Once the tower gets his money you are finished with the accident (financially). Call around and talk to towers about different scenarios and chose that as your deductible. Don't assume that you won't be in a major accident. Assume you will and plan accordingly. If the worst happens you'll be prepared. -HowWorkClutch Link to comment Share on other sites More sharing options...
ajnin Posted September 4, 2014 Share Posted September 4, 2014 Basically insurance on a motorcycle is like insurance on a computer. The item is not expensive enough for many people to warrant the extra expense. If the worst that could happen is you would just have to buy another motorcycle and you have money for that, then insurance is not needed. After all, insurance companies make tons of money by being right about your odds of a claim. This is how Warren Buffett is a billionaire. I only carry liability insurance on my motorcycles...the minimum required by law. 4 motorcycles costs me $129 a year total. I have never had to replace a motorcycle, but with the money I have saved in insurance, I could buy a couple of new motorcycles. The other things that make insurance not quite as good as you may think it is, is when you find the insurance company won't cover something, only cover a small portion of it, or you are concerned your rates will be increased so you don't even file a claim. The last scenario happens a lot. I wouldn't personally buy a bike I couldn't pay cash for either. Yes, I am a little weird. I also don't insure my cars or home, but there again, the worst that could happen is I would have to buy a new car or home. Not a good reason for me to be spending thousands a year in insurance. Link to comment Share on other sites More sharing options...
oneyellowbird Posted April 11, 2016 Share Posted April 11, 2016 "Posted by ajnin Sep 4, 2014 at 1:32pm Basically insurance on a motorcycle is like insurance on a computer. The item is not expensive enough for many people to warrant the extra expense. If the worst that could happen is you would just have to buy another motorcycle and you have money for that, then insurance is not needed. After all, insurance companies make tons of money by being right about your odds of a claim. This is how Warren Buffett is a billionaire. I only carry liability insurance on my motorcycles...the minimum required by law. 4 motorcycles costs me $129 a year total." RESPONDING TO AJNIN: I'm getting insurance quotes for a FZ-07. I'm a returning rider and plan to pay cash for the new bike. My state requires only minimal liability. I've received quotes for 15K/30K Liability for $75. /yr and $137. /yr. Am I missing something? A quote for 25K/50K plus comp, collision (500ded), UM 15K/30K, no UIM, 3K custom equipment is $560/yr. Does it make sense to pay for the extra coverage. Link to comment Share on other sites More sharing options...
pineappleunderthesea Posted April 11, 2016 Share Posted April 11, 2016 Liability is a tricky one, probably depends how old you are and how much risk you're willing to take. If your motorcycle crashes into a nice luxury car and you're at fault, will your state-minimum liability insurance cover all the cost? If the other person is seriously injured, will the state minimum cover all the expenses? $50k can go very quickly at the hospital, and you're stuck with the rest. So in my situation with young kids, mortgage, etc, I opt for higher liability. I don't want to dip into a 401k and collège savings in order to pay damages that i caused Link to comment Share on other sites More sharing options...
twowheeladdict Posted April 12, 2016 Share Posted April 12, 2016 Unless I am financing, riding a lot of miles a year on a particular bike, or the value is very high, I opt for liability, and comprehensive. Collision is the most expensive option when I look at insurance. I like to say that knowing I don't have collision keeps my riding style in check, and emphasizes keeping my skills at their peak. Comprehensive covers animal strikes, theft, vandalism, fire, etc. 2015 FZ-07 Link to comment Share on other sites More sharing options...
Premium Member xcarbonsteelx Posted April 12, 2016 Premium Member Share Posted April 12, 2016 My $.02. It's called an accident for a reason not an on purpose. Your deductibles should be something you can pony up in the unlikely event something does happen. Everyone is in a different financial situation and only you know what you can afford. Personally, I have a $100/$1000. - xCarbonSteelx Link to comment Share on other sites More sharing options...
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