Buying a new motorcycle... do they make you get full coverage insurance?

[notfred]

If you buy a new motorcycle with a loan, do they make you get full coverage insurance? I don't want to pay several hundred $/month for a $4000 vehicle. I could always pay for one with a credit card or something...

 

[notfred]

Quick quote from progressive.com:

liability only: $642/year
Comprehensive: $2486/year

You see why I don't want comprehensive coverage.

 

[AgaBoogaBoo]

Hehe, if you paid comprehensive, that would be more than half the cost of the vehicle. Isn't that a little high?

 

[notfred]

I could probably find a better rate, but I could probably find a better rate for liability only, too. This was just a quick comparison of the two.

I don't even have a motorcycle at this point, but I want to see if it's feasible to get one. I'm certainly not paying $2500/year to insure one.

 

[TheNinja]

I can only tell you that where I grew up (in Iowa) they did not require full coverage. I highly doubt any state would require it b/c if something happens to the bike and you don't have full coverage it is your loss not anybody else's. So, I would say yes, liability is required so that when you splat into someone's car you can pay for the damage to their vehicle and the people inside of it....and no, full isn't required....just make sure you have your own medical

 

[Vic]

Originally posted by: notfred
If you buy a new motorcycle with a loan, do they make you get full coverage insurance?

Yes.

 

[Vic]

Originally posted by: Staley8
I can only tell you that where I grew up (in Iowa) they did not require full coverage. I highly doubt any state would require it b/c if something happens to the bike and you don't have full coverage it is your loss not anybody else's. So, I would say yes, liability is required so that when you splat into someone's car you can pay for the damage to their vehicle and the people inside of it....and no, full isn't required....just make sure you have your own medical

Reading is Fundamental.

 

[notfred]

Originally posted by: Staley8
I can only tell you that where I grew up (in Iowa) they did not require full coverage. I highly doubt any state would require it b/c if something happens to the bike and you don't have full coverage it is your loss not anybody else's. So, I would say yes, liability is required so that when you splat into someone's car you can pay for the damage to their vehicle and the people inside of it....and no, full isn't required....just make sure you have your own medical

I mean when you're getting a loan to pay for the bike, similar to when you get a loan to pay for a car and the bank requires full coverage insurance.

 

[notfred]

Originally posted by: Vic

Originally posted by: notfred
If you buy a new motorcycle with a loan, do they make you get full coverage insurance?

Yes.

In that case, I'm either saving up for one, or finding some other type of loan.

 

[bigrash]

I think full coverage is required if a third party is involved. Since you're getting a loan, I think you're supposed to get full coverage.

You can also get a loan from a separate bank and not tell them that you're using it for an automobile purchase, that way you get to avoid full coverage, since you'll just pay the whole thing at once. That's what I did when I bought my car

 

[vi edit]

The bike is the collateral. If the bike is totaled, and there is no insurance to replace it (or pay for it) the bank no longer has any collateral to sieze in the event you don't pay up on your loan.

Any lender I've ever worked with will make you pay for full coverage.

 

[whaleskinrug]

yes, until you own the bike

 

[Viper GTS]

For a $4K bike I'd probably use a credit card. The extra $200 a month will go a long ways towards paying down the CC balance.

Plus if you have shoddy credit there's a pretty good chance the interest rate on your CC will be better than the bike loan.

Viper GTS

 

[Vic]

If you get the loan specifically for the bike, meaning that you use the bike as collateral, then the bank will require full coverage. That's how they work. They don't want to end up like amnesiac's girlfriend's lender, where the vehicle is totalled without coverage and with thousands still left owing. Experience has taught lenders that loans in that situation have a ridiculously high default rate (almost 100%) with almost no hope of recapture (because the collateral is destroyed).
You could use a credit card for the purchase or you could get a personal unsecured loan.

 

[TheNinja]

Originally posted by: Vic

Originally posted by: Staley8
I can only tell you that where I grew up (in Iowa) they did not require full coverage. I highly doubt any state would require it b/c if something happens to the bike and you don't have full coverage it is your loss not anybody else's. So, I would say yes, liability is required so that when you splat into someone's car you can pay for the damage to their vehicle and the people inside of it....and no, full isn't required....just make sure you have your own medical

Reading is Fundamental.

DOH...didn't read the part about the LOAN . In that case, YES you must have full coverage

 

[Crazymofo]

Get a used bike if its your first bike... i made the mistake of getting a new bike for my first. And Viper is right if you have bad credit a credit card will prolly be the best route because motorcycle loans screw you. As do motorcycle salesman!

 

[malbojah]

Get a used bike, like a 99 Busa or a ZX-12R

 

[Dulanic]

Wow thats rough, State Farm only wanted an extra 300/yr for me to insure a bike along with my car. Thats full coverage.

 

[notfred]

Originally posted by: Crazymofo
Get a used bike if its your first bike... i made the mistake of getting a new bike for my first. And Viper is right if you have bad credit a credit card will prolly be the best route because motorcycle loans screw you. As do motorcycle salesman!

I probably will get a used bike, but I'd like to get something decent, and not more than maybe 5 years old, so I'll still probably need a loan.

 

[jorken]

There are other types of loans out there, you don't need an autoloan ya know. Get a personal loan, the rates might be a slightly higher but you won't to pay that rediculous comprehensive price.

 

[notfred]

Originally posted by: jorken
There are other types of loans out there, you don't need an autoloan ya know. Get a personal loan, the rates might be a slightly higher but you won't to pay that rediculous comprehensive price.

Yeah, that's why I was asking, I didn't know if motorcycle loans were treated the same as auto loans, or more like personal loans since they're generally for smaller amounts.

 

[DrPizza]

Originally posted by: notfred

Originally posted by: Vic

Originally posted by: notfred
If you buy a new motorcycle with a loan, do they make you get full coverage insurance?

Yes.

In that case, I'm either saving up for one, or finding some other type of loan.

Bingo... rates are low enough right now that it won't vary that much from an auto loan to a personal loan.... It may be a percent or two higher, but for that price, it won't make much of a difference overall. And, you'll more than make up for the difference in interest with the savings on insurance. That sounds kinda high for liability though... But, I think that's because around here (NY), you can only ride your motorcycle for a fraction of the year.