Collision insurance on motorcycles is very expensive for what it covers. Unless your bike is a high end Ducati, Bimmer, or Cruiser. I just would not pay the money to insure it against collision.
Think about what you are insuring. You are insuring against a crash or mishap that would be your fault. Let's say your bike is worth $10,000. From what I gather a collision rider costs between 3% and 10% of the value of your bike. If you crash your bike and cause $2500 worth of damage. You will have a deductible to pay ($300? $500?) and your insurance rates will sky rocket. I would bet that half the people in this situation would just fix the damage out of their own pocket. Now let's look at a more serious crash. You are riding along and you crash hard. Your bike is a write off and it is your entire fault. Not to mention the shape you are in. You could be hospitalized or worse. Your bike is covered and now you have to deal with ICBC. You also have to talk to ICBC about lost wages and your road to recovery. Everyone knows how difficult ICBC is in these types of situations.
Why rely on a corporation that will offer you a ridiculously low settlement? Sure you can get an accident lawyer and fight for more money. That will get you more money in the end but you will have to wait 3-5 years. Bills and medical expenses will pile up during this time and who are you going to rely on to pay them? Family? Your wife? Your girlfriend? You and your family are put in a tough situation. Not only would your financial situation be changed, you would change others as well.
Instead of paying $500 to insure your motorcycle against collision, put it toward an insurance policy that insures your body for a collision.
What do you think is worth more to you? Your motorcycle or your ability to make money and live independently?
There are three ways to go about insuring yourself; Disability Insurance, Critical Illness Insurance, and Long Term Care Insurance. All have different definitions and cater to different situations.
Disability Insurance covers your ability to work. If you are unable to do the daily activities of your job due to an accident or sickness a monthly benefit will pay out. This policy is typically the most expensive since it has the most liberal definitions. The average 25 YO, non-smoking male will pay around $75/m for $2000/m coverage.
Long Term Care Insurance is defined by your inability to do two out of the six tasks of daily living; bathing, dressing, feeding, toileting, transferring, continence. If you were to break your leg badly (multiple fractures requiring a long recovery time) you would be covered. The average 25 YO, non-smoking male will pay around $35/m for $2000/m coverage.
Critical Illness protects against 21 critical conditions; Heart Attack, stroke, life-threatening cancer, Alzheimer's disease, aortic surgery, benign brain tumour, blindness, coma, coronary artery bypass, deafness, heart valve replacement, kidney failure, loss of independent existence, loss of limbs, loss of speech, major organ transplant, motor neuron disease, Multiple Sclerosis, Paralysis, Parkinson's disease, and severe burns. If one of these critical illnesses were to happen to you and you survived the diagnosis for 30 days, the benefit would pay out. The average 25 YO, non-smoking male will pay around $50/m for $100,000 one time payout.
All policies are tailor made to what you need and want to be covered for. All benefits paid to you are deposited in your bank account and are tax free.
If you are paying insurance premiums, look at what they cover. Then ask yourself if they benefit you the most. Insuring yourself and your ability to work should be your priority. It is your most important asset.
If you have any questions post up here or send me an email.