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  • Writer's pictureTom Fowler

Does Insurance Cover a Stolen Motorcycle?

Motorcycle riders around the world may argue that cruising on a motorbike is one of the most exciting and liberating means of transportation. However, motorcycles are more prone to thievery than cars, for one simple reason. They are lighter and more portable than cars, therefore easier to steal, dismantle, and sell for parts in a short span of time.

According to the National Insurance Crime Bureau (NICB), the motorcycle theft rate is on the rise over the last few years, with an astounding 30% increase in 2020 compared to the previous year. In addition, the statistics show, motorbikes are less likely to be found and retrieved than automobiles.

So, with such alarming facts, many motorbike owners are left wondering: “Does insurance cover a stolen motorcycle?” The answer is yes, but only with a certain motorcycle insurance policy.

Types of Insurance Policies

Types of Insurance Policies

All U.S. states, except for Florida, require motorcyclists to get insurance as a form of financial credibility. Motorcycle insurance protects riders in case of accidents, sustained injuries as well as vehicle damages. However, most motorbike owners are unaware of the fact that different types of policies can greatly influence compensation fees.

Depending on the type of insurance and its price, certain situations do not fall into consideration, such as theft. Thus, riders should carefully read offers from insurance companies and understand what circumstances are covered by their policy.

Liability Insurance Policy

Liability insurance is a type of policy that covers the expenses of trauma and damages sustained by others in an accident the policyholder caused. In most cases, liability coverage is the basic and least expensive package.

Accidents are pretty common because of the fact that motorcycles are sometimes hard to see while on the road.

Collision Insurance Policy

Collision insurance is useful in situations when a rider crashes into another vehicle or objects such as railings and banisters. The insurance company covers repair fees for the damages to the insurer's motorbike.

Comprehensive Insurance Policy

Comprehensive coverage offers compensation in cases of fire, vandalism as well as robbery. The insurance company should pay for the stolen motorcycle or damages to the vehicle prior to it being found. Most states do not demand this type of policy unless the motorcycle is leased or financed.

Some insurance firms also include coverage for custom bike parts, equipment, or embellishments. However, when it comes to insurance packages, there are several factors that influence their prices. The size and power of a motorbike, younger age of a rider (25 and less) along with prior insurance claims can cause an increase in fees.

It is important to mention that home and renter insurances do not include coverage for motor vehicles in their policies. However, in some instances, they may pay for motorbike-related objects such as helmets, if they are stolen from the insured property.

Having insurance cover your motorcycle is extremely necessary, especially if you are considering someone else to borrow your vehicle.

Theft Claim Steps

Motorcycles go missing from time to time, it is inevitable. But what comes after is crucial. Filing a motorcycle theft claim can be a delicate process and every step needs to be done properly.

When a motorbike gets stolen, the first step is to call the police. Without a police report, the insurance company will dismiss the theft claim. Time is of the essence. The longer the wait, the lesser the chance that the police will find the stolen vehicle. Furthermore, it is necessary to provide the police officers with an accurate description of the motorcycle (brand, model, color, markings) as well as mileage, license plates, along with the date and time of the robbery.

Only after the police had issued a report or an FIR (First Information Report) can a motorcycle theft claim begin. As with the police, the owner must provide all the necessary information about the vehicle and the circumstances of the theft. Additionally, an insurance adjuster may ask for further documentation to determine the value of the settlement.

After the estimate, the insurance company may offer a settlement deal. In some cases, they may agree to buy another motorbike for the equal or lower value of the stolen vehicle.

However, if the stolen motorcycle is found after the claim process has finished, the insurance company owns the vehicle. In these circumstances, the firm can allow the rider to repurchase the bike.

No matter the situation, it is recommended that motorcycle riders check if their insurance policy includes comprehensive coverage. Without it, they cannot seek compensation and will have to pay for a new bike out of their own pockets. Also, it is important to note that the insurance company will pay for the stolen vehicle only if the owner provides an active motorcycle insurance policy.

If you need help getting a claim for your stolen motorcycle, a motorcycle accident attorney in Des Moines will be more than capable of providing you with one.


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