Comprehensive Physical Damage Insurance For Motorcycles

Custom Parts and Equipment (CPE) Coverage

Motorcycle accessory coverage, also known as CPE insurance, covers damage specifically to custom parts and accessories.

Your comprehensive insurance policy might include some CPE coverage―typically $500 to $1,000―but you have the option to purchase more coverage for extensive accessories. For example, if your motorcycle is highly customized, sporting $5,000 worth of customized parts, you should considering purchasing up to $5,000 in CPE coverage. That way, in the event of theft or a total loss accident, you will be compensated for all motorcycle accessories, in addition to bike itself.

Motorbike Insurance Settlement Types

In the event of theft or a total loss accident, you will be offered a loss settlement. The type of settlement you are offered depends on the type of motorbike you own.

For example, if you own a fairly new factory bike―such as a Honda Crossover―you will typically be offered a settlement for the actual cash value (ACV). This means that, in the event of a total loss accident, you will compensated for the Kelley Blue Book value of the motorcycle, minus the deductible.

If you have purchased additional accessory coverage, you will be compensated for your accessories as well.

On the other hand, if you own a classic bike―such as a Harley Davidson FLST Heritage―typically you will be offered a settlement for the agreed value or stated amount. The stated amount represents the value of the bike as stated by the bike owner at the time of policy purchase, and the agreed value is the value of the bike as agreed upon by you and your insurance company when the policy is written.

Any custom equipment or accessories added after the policy is written will only be covered by CPE insurance.

Obtaining CPE and Comprehensive Coverage

You can compare motorcycle insurance rates and policy types online, or by contacting the Insurance Department in your state.

When shopping, be aware that the more coverage you purchase, the higher your annual premium will be, however it costs less to maintain an insurance policy than to pay for repair and custom part expenses out of pocket.