Custom Motorcycle Appraisal: The First Step To Getting A Specialty Insurance

There are a number of insurance companies that wouldn’t insure a custom motorcycle. For those that do, one thing is always required – an appraisal report. Since a custom motorcycle is usually a one-of-a-kind type, insurance companies mostly offer specialty insurance on them. To increase your chances of getting one though, you must first carry out a custom motorcycle appraisal.

What A Custom Motorcycle Appraisal Entail

In appraising a custom bike, care must be taken to document every part of it. This is very useful especially if the appraisal was for insurance purposes. Failure to fully document every part of your bike might leave you exposed whenever you have to file a claim. Thus, all visible and hidden parts such as the air suspension should be carefully documented.

The main objective of a custom motorcycle appraisal is to determine the cost of all the modifications done to the bike. In other words, the appraisal report could be referred to as a comprehensive list of all the material and labor that went into customizing the bike.

After the cost of modification have been determined, the appraiser then tries to find a fair market value for the bike. He does this by comparing it to other bikes on the market, drawing similarities based on year, make, and model.

What Are Your Insurance Options?

As a custom motorcycle owner, you might not be eligible for the regular insurance policies that other vehicle owners get for their property. Even if you are, you might want to get specialty insurance as regular insurance policies do not provide optimum protection to you and your bike in the event of a loss.

Agreed Value Insurance

Most custom bikes often cost far more than other similar bikes. This is because, some of the parts added to custom bikes are hard and expensive to get. In fact, some of these parts are hand made and thus really scarce. In cases like these, you and your insurance company might have to agree on an amount that it would pay to you should there be a total loss. 

For the above-mentioned cases, the agreed-on value would be higher than the bikes fair market value. It would however be justified by the appraisal report presented to the insurance agency. And the insured would also have to pay higher premiums.

Custom Parts and Equipment Coverage (CPE)

Only bikes that are 25 years or older are eligible for agreed value insurance. So, in the event that your bike isn’t, or you don’t want that policy, you might decide to take out a custom part and equipment coverage (CPE).

CPE coverage basically covers all devices, accessories, and any enhancements or changes that are not factory-fitted and that are permanent in nature.

A custom bike owner even after getting a collision and comprehensive coverage might also have to buy CPE coverage.

In summary, a custom motorcycle appraisal report is useful for many purposes. If its purpose is to get an insurance policy, however, let the appraiser know before-hand so he could tailor his report to meet the specific needs.