Personalizing motorcycles is almost second nature to many: They want to make the bike reflect their personality, so getting a custom paint job or adding flashy saddlebags is a simple way to do this. Adding accessories and parts is easy, but do you know if your insurance policy covers those added items?
How Insurance Defines Custom Parts and Equipment on Motorcycles
A basic motorcycle insurance policy outlines what situations and types of damage are covered for your motorcycle. Most motorcycle policies also define what types of parts and equipment are covered, but if you add parts — sissy bars, custom exhaust, alarms, etc. — they may not be covered without purchasing additional coverage.
Motorcycle policies often define CPE as equipment, devices, accessories, enhancements and changes, other than those that the original manufacturer installed, that alter the appearance or performance of the motorcycle. The definition is fairly straightforward, but simply put, if you add something to your motorcycle that the maker didn’t originally have on it, and it changes how your bike looks or rides, you’ve added custom parts and equipment to your motorcycle.
Often, a basic motorcycle policy will provide coverage for CPE up to a specific limit, such as $1,000. However if your accessories or parts are valued at more than $1,000 or whatever amount is automatically covered by your policy, it’s a good idea to add additional CPE (or Accessory coverage, depending on your state) to your policy so those parts are covered in case they’re ever damaged.
Do You Need CPE/Accessory Coverage?
Look at the amount of CPE on your bike to determine its value, then check your insurance policy to see how much CPE coverage is automatically included with Collision and Comprehensive coverage. If the value of your CPE is more than the included coverage, consider purchasing additional CPE/Accessory coverage to protect these valuable pieces of equipment.
You may be able to purchase up to $30,000 of CPE/Accessory coverage, depending on what your state offers. You also may need an inspection completed depending on the type or amount of CPE you have. Your insurance company should notify you of this when you purchase CPE/Accessory coverage.
Finally, remember to keep all receipts of your custom parts and equipment, and take pictures of your bike with the equipment permanently installed on it. This can help expedite a claim if you ever need to make one.
