Collision insurance worth it? | GTAMotorcycle.com

Collision insurance worth it?

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Vontwowheels

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I'm picking up a new (used) bike for myself hopefully in the next week. A 15' cbr650F that I'm getting for around $4500 cert.
Insurance is less then expected, with a 500 deductible, near barrie, about 190/mo full coverage.
Without collision though its $22 less a month.
Is collision worth it on a bike under 5K?
I'm not sure how insurance comes up with a payout in bikes, I assume similar to automotive there's a prescribed value of the vehicle that they pay? I just would hate to spend the extra money on collision and have them pay out $2500 cause thats what they say the bike is worth minus deductibles.

Any thoughts?

I just know if I had a car I paid 4K for I wouldn't be putting collision on it ....

Thanks!
 
Vontwowheels said:
I'm picking up a new (used) bike for myself hopefully in the next week. A 15' cbr650F that I'm getting for around $4500 cert.
Insurance is less then expected, with a 500 deductible, near barrie, about 190/mo full coverage.
Without collision though its $22 less a month.
Is collision worth it on a bike under 5K?
I'm not sure how insurance comes up with a payout in bikes, I assume similar to automotive there's a prescribed value of the vehicle that they pay? I just would hate to spend the extra money on collision and have them pay out $2500 cause thats what they say the bike is worth minus deductibles.

Any thoughts?

I just know if I had a car I paid 4K for I wouldn't be putting collision on it ....

Thanks!
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I would say no if it was just protecting you from the loss of the bike. The biggest upside to collision insurance is it protects you from the tow-truck mafia, guard rail damage, etc. Those costs can easily eclipse the value of your bike and are basically non-negotiable, pay up or get sued (and probably lose).
 
$22/month isn’t much. For me I gauge it on the overall vehicle value. I probably don’t need collision coverage to replace a $2k bike in the event I wreck it. If it’s the other person’s fault their insurance replaces it.

What is your personal number for replacement? Rhetorical question.


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Hack said:
$22..?
You probably spend more than that at Tim's in a month.
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Or use it towards increased liability or AB coverage. At $264/yr, he could also use it to cover maintenance costs, or new gear every once in a while.

I purposely decline collision as a deterrent to keep myself from doing (really) stupid ****. I can't see any condition where I'd make a claim on my collision if it were my own fault - cheaper to take my licks than have a collision claim on my record. If someone else is involved, they're covered by their own insurance. I have "property damage" included under liability in my policy, as well as "direct compensation - property damage" - does that take care of stuff like the guard rail? And of course if it's not my fault at all, my insurance company will take care of me. At least, that's how I understand it - never had to find out!
 
Relax said:
I have "property damage" included under liability in my policy, as well as "direct compensation - property damage" - does that take care of stuff like the guard rail? And of course if it's not my fault at all, my insurance company will take care of me. At least, that's how I understand it - never had to find out!
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Good question. @NFP Moto any insight?

If you are on secondary roads, you can probably avoid the tow truck mafia (unless you are in an ambulance in which case it will suck as you will have towing plus storage plus ....). If you are on the highway, I don't think you have a way to avoid extortion. Obviously for both of those scenarios assuming that there wasn't another party involved that stuck around so you can get it covered without collision insurance.
 
Never thought of that point of tow truck mafia. Even in my non-at fault accidents, I've gotten someone to grab my own truck and brought the bike home first.

Agree with what others have said, my bikes have always been in that price range and for me personally I looked that if it was my own fault, I should punish myself to pay for a replacement and repair out of pocket.
However, my new bike is much more in cost and so I've paid for the collision as a peace of mind.
 
Collision/Upset covers damage to the bike that is either your own fault or that you couldn’t blame on another person (a single vehicle accident for example). Without Collision coverage you know ahead of time that you dump or ding up your own bike you’re taking care of it outside of insurance or live with the dent. You as a rider are covered the same way if you got hurt or hurt someone else. These are two levels of coverage for the bike itself. If you are not financing the bike you have both options. If you are financing the motorcycle the bank or financing institution requires full coverage on it as it is partly their bike.

I will be honest, I do not carry collision coverage on my own street bike.
 
NFP Moto said:
Collision/Upset covers damage to the bike that is either your own fault or that you couldn’t blame on another person (a single vehicle accident for example). Without Collision coverage you know ahead of time that you dump or ding up your own bike you’re taking care of it outside of insurance or live with the dent. You as a rider are covered the same way if you got hurt or hurt someone else. These are two levels of coverage for the bike itself. If you are not financing the bike you have both options. If you are financing the motorcycle the bank or financing institution requires full coverage on it as it is partly their bike.

I will be honest, I do not carry collision coverage on my own street bike.
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So where do tow truck/guard rail repairs get covered? I would assume that tow truck would be part of collision if it was your fault but I don't know for sure.
 
GreyGhost said:
So where do tow truck/guard rail repairs get covered? I would assume that tow truck would be part of collision if it was your fault but I don't know for sure.
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It really is a simple as that. If the damage came from a TOW TRUCK, meaning operated by an actual person, with a drivers license, and NOT the riders fault that is a NOT-AT-FAULT claim that wont affect your insurance. The claim gets paid out to you but then behind the scenes the insurance company goes after the tow truck driver /tow truck company's liability insurance to collect some $$$. Fault rating goes on the tow truck driver.

In the case of the rider running into a guard rail (no one pushed you, no one else to blame) you would need the collision/upset coverage to be able to put in a claim. The insurance company cannot collect $$ from a guard rail of course. That being said, it can affect your future rate as again all single vehicle accidents are rated as AT FAULT with a few exceptions (huge pot holes or street conditions that the government did not put a warning sign on, getting run off the road by another vehicle, etc)
 
For me the delta has always made me think for the matter of $250 - $300 do I really want to be facing that decision in the event I do the damage. It's not a lot of money to separate with so I take the collision coverage and don't think about it much more.
 
NFP Moto said:
It really is a simple as that. If the damage came from a TOW TRUCK, meaning operated by an actual person, with a drivers license, and NOT the riders fault that is a NOT-AT-FAULT claim that wont affect your insurance. The claim gets paid out to you but then behind the scenes the insurance company goes after the tow truck driver /tow truck company's liability insurance to collect some $$$. Fault rating goes on the tow truck driver.

In the case of the rider running into a guard rail (no one pushed you, no one else to blame) you would need the collision/upset coverage to be able to put in a claim. The insurance company cannot collect $$ from a guard rail of course. That being said, it can affect your future rate as again all single vehicle accidents are rated as AT FAULT with a few exceptions (huge pot holes or street conditions that the government did not put a warning sign on, getting run off the road by another vehicle, etc)
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I was more thinking of the rider getting in an at-fault collision and the tow-truck picks up the bike and hands them a $1000 bill. The guard rail was with respect to the municipality sending you a bill to repair their guardrail/sign, send fire trucks etc.
 
NFP Moto said:
It really is a simple as that. If the damage came from a TOW TRUCK, meaning operated by an actual person, with a drivers license, and NOT the riders fault that is a NOT-AT-FAULT claim that wont affect your insurance. The claim gets paid out to you but then behind the scenes the insurance company goes after the tow truck driver /tow truck company's liability insurance to collect some $$$. Fault rating goes on the tow truck driver.

In the case of the rider running into a guard rail (no one pushed you, no one else to blame) you would need the collision/upset coverage to be able to put in a claim. The insurance company cannot collect $$ from a guard rail of course. That being said, it can affect your future rate as again all single vehicle accidents are rated as AT FAULT with a few exceptions (huge pot holes or street conditions that the government did not put a warning sign on, getting run off the road by another vehicle, etc)
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So what do "property damage" (listed under liability) and "direct compensation - property damage" cover?
 
Relax said:
So what do "property damage" (listed under liability) and "direct compensation - property damage" cover?
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Property damage covers the claim /payout for damage that you might do to SOMEONE ELSE'S property (their car, fence, dog, etc). Claim is paid out right away and then it gets sorted out behind the scenes between the insurance companies.

Direct Compensation is the WAY the claim is handled in Ontario. This is different from the way it works in the USA where everyone just sues each other (ever seen Judge Judy?). In many States you have to wait UNTIL the insurance company has collected from the other party /or other party's insurance to get your claim or vice versa. In Canada you get that cheque quick and the insurance company then goes after the at-fault party which can take months. Imagine someone that has a huge accident in Florida, is in the hospital needing rehab (sorry, no OHIP down there) waiting for months and months to even be able to pay for the treatment? totally different system up here and also main reason why its more expensive in Ontario.
 
NFP Moto said:
Collision/Upset covers damage to the bike that is either your own fault or that you couldn’t blame on another person (a single vehicle accident for example). Without Collision coverage you know ahead of time that you dump or ding up your own bike you’re taking care of it outside of insurance or live with the dent. You as a rider are covered the same way if you got hurt or hurt someone else. These are two levels of coverage for the bike itself. If you are not financing the bike you have both options. If you are financing the motorcycle the bank or financing institution requires full coverage on it as it is partly their bike.

I will be honest, I do not carry collision coverage on my own street bike.
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The rider is covered in the same way as the bike? So if without collision, there's a single vehicle accident, and an ambulance ride is required without collision that cost isn't covered under the other existing coverage for the rider?
 
NFP Moto said:
Property damage covers the claim /payout for damage that you might do to SOMEONE ELSE'S property (their car, fence, dog, etc). Claim is paid out right away and then it gets sorted out behind the scenes between the insurance companies.

Direct Compensation is the WAY the claim is handled in Ontario. This is different from the way it works in the USA where everyone just sues each other (ever seen Judge Judy?). In many States you have to wait UNTIL the insurance company has collected from the other party /or other party's insurance to get your claim or vice versa. In Canada you get that cheque quick and the insurance company then goes after the at-fault party which can take months. Imagine someone that has a huge accident in Florida, is in the hospital needing rehab (sorry, no OHIP down there) waiting for months and months to even be able to pay for the treatment? totally different system up here and also main reason why its more expensive in Ontario.
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I had a mishap near Sudbury 30 years ago and slightly relocated a fire hydrant with my van. I got a bill for over $3,000 from the city. I sent it to my insurance company and never heard anything afterwards.

The van was a write off and I got a cheque.
 
Decline coverage. If you crash and make a claim they might pay you out $4000 less your deductible. Yeehaw a new bike.

Then you’re no longer claim free, watch them recover their payout 3times before your rates get back to what they were preclaim.
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