Do You Have To Carry Insurance On A Motorcycle If You Are Financing It?
I know in WA state where i live you aren’t required to carry motorcycle insurance, but i am curious if you need to have insurance if you are financing a bike?
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Full coverage untill the bike is paid-off.
The lienholder always stipulates in the financing contract that you are required to either obtain material damage lines on the collateral (the bike), or they will purchase it and add the amount they spend on it to the amount of the loan.
So. Either you purchase comp & collision from your insurer, or they will force “single interest” insurance on you that costs about 4 times what you could get it for yourself, and you’ll have to pay it off with interest because it will be part of the loan amount.
So make your choice and shoot your wad bubba.
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Yes. When you finance, the bank owns the bike, not you. It’s an investment on their part, trusting that you’ll pay the bike off with interest before destroying it.
That said, they want to make sure their investment stays safe, which means that they will require FULL coverage on any financed motorcycle. If you wad it up after a year, they will make sure that YOU will take any losses, not them.
YEP!!!
It’s the same in Florida. You don’t need M/C insurance period. At least, I was never asked to get any up front. I financed my last two bikes (H-D’s both.) through HDFSI and had to get my insurance through H-D on my own, and not through the dealer. It’s only because I know better that I ride with full coverage, including medical, which I don’t have to carry either. It just common sense, and peace of mind.
If you carry at least $10,000 of medical, you don’t have to wear a helmet in Florida. Not wear a helmet! No me! I wear a lid, a dead cow that weighs about 8 pounds, worse when wet, a big ‘ol pair of Milwaukee M/C boots, and gloves. (Hands bleed alot, almost as bad as scalp woulds.) Never wear shorts. What leather don’t cover, heavy denim does. 95 degrees out in the summer here? Tough. Sweat washes off. Road rash is forever. The protective stuff is my idea of cheap insurance. Pay once, take care of it, and done.
To return to your question, again, I was never asked to provide insurance up front. Now this may have been a factor. I’m over 40, (WAY over 40!) both bikes were used, and both were for commuter use, not recreation. I’m not sure if that is a Florida thing, like the 10 grand no helmet biz. And I lived in Washington many years ago. (Early 80’s.) You didn’t have to have car insurance either! (Not a new car.)
Been riding many moons, in many places. Everyplace is different. The best bet for the info you need is to call the dealership. They will know what the rules and regulations are for the state they sell in, and if you can get any combination deals for financing and insurance. Good luck, take care, and ride safe. Ciao!
Let’s look at it this way…if you totaled the bike, you still owe the money to the lender. You will be paying for something you can’t ride, or may not even have anymore. What if you damage someone else’s car or injure another person. Do you have the money in the bank to cover their loss or medical bills? It doesn’t make sense to ride a bike without insurance.
Yes
Well in TX if you are financing any kind of vehicle you have to have insurance. But you might want to go the safe route and get insurance any way.
Yes, the motorcycle is the security against the loan and the finance co. will insist it be covered for loss or damage.
If for some crazy reason you don’t want to insure it you could use your homes equity line of credit to buy the bike instead of financing through a bank or dealership.
Oh heck yeah. This one I can chisel in stone for you — if you are financing ANY type of vehicle (car, truck, motorcycle, boat, airplane, etc.) you MUST have insurance. Most states require you to have full coverage on any vehicle that is being financed until it is paid off.
Folks – IT DEPENDS ON THE FINANCING COMPANY/BANK!!!!!!!!
MOST banks will require full coverage, but NOT all. Interest rates are typically higher, but they do exist. Talk to the finance/business manager at your dealership.
I worked 4 years in a major motorcycle dealership, and a number of my customers financed their bikes without a requirement for full coverage. I personally think it’s stupid, but the option exists.One girl with a bad insurance history was quoted $14,000 per year (No kidding!!) for full coverage, so it was cheaper to take a more expensive loan without full coverage requirement.