People who own classic motorcycles in Royal Oak, MI, sometimes have questions about the different types of motorcycle insurance they need. That’s because the motorcycle insurance you have for your everyday bike is different from what you want if you’re talking about a classic bike.

For a newer bike, a standard motorcycle insurance policy is usually totally fine. These policies pay out based on depreciation. But if you have a restored 1972 Honda CB350 or a numbers-matching Triumph Bonneville, you’ve got a whole different situation on your hands. Depreciation doesn’t tell the story behind these collector bikes. That’s when you need to talk with High Favor Insurance about agreed value policies.

What Is Agreed Value Motorcycle Insurance?

When you have a standard motorcycle insurance policy, your payout when a bike is totaled is based on its actual cash value. The insurance company looks at a few different things to determine that. Age, mileage, confidence, market comparisons. Then they factor in depreciation.

But that formula doesn’t work for classic motorcycles. It would never reflect the bike’s actual value. In this situation, an agreed value policy is your best bet. You and your insurer agree on a value when you get your policy. If something happens to total the bike, that’s what they pay.

Why This Is Important for Classic Bike Owners in Royal Oak, MI

The value for classic motorcycles can fluctuate over time. Bikes that have been restored, or those with original matching components, usually have a value that’s far above what your standard depreciation formula would give you. Royal Oak bikers put serious time and money into their bikes. They need motorcycle insurance that reflects that.

A Professional Appraiser Determines Your Bike’s Value

Most of the time, agreed value policies need the help of a professional appraiser. They’ll set the motorcycle’s value, and your insurance company locks in the number. So it’s important to keep good documentation of your bike’s condition, and also things like original parts and aftermarket additions. High Favor Insurance will walk you through the entire process.

Partnering with Pros Makes All the Difference

You’ve invested a lot into your classic bike. Blood, sweat, tears, and probably a lot of money. Be sure you’ve got motorcycle insurance coverage that protects that investment. Get in touch with us today.