Collision Insurance CoverageBrett Haworth
Let’s talk about the collision coverage in your vehicle insurance policy, especially when it comes to motorcycles.
Financing a Motorcycle
These days, motorcycles cost a lot of money, and many of us finance that purchase. As you probably know, your finance contract is going to require that you maintain collision coverage on that vehicle for the duration of the loan.
Naturally, the collision coverage is designed to pay for the repair of any damage to the vehicle that results from a collision. It doesn’t matter whether it collided with another vehicle or with a stationary object.
The collision coverage makes sure that the motorcycle, which is the collateral for your loan, is properly maintained and serviced. This ensures that the value of the collateral is protected during the life of the loan.
Regulations about Using OEM Parts For Repair
Here’s something that comes up frequently, particularly here in Indiana. There are people who have damaged vehicles — whether they’re motorcycles or cars — and they want to use original equipment manufacturer or OEM parts for the repair of their vehicles.
The thing is that whether the repair company is required to use OEM parts is actually dictated by an Indiana statute. According to that statute, if your vehicle is five years old or newer, then you must be given the option to use OEM parts as opposed to third-party or aftermarket parts.
The Advantage of OEM Parts
We find that OEM parts are specifically designed and engineered for that bike or that particular vehicle. They have the highest quality and performance value as compared to many of the third party or aftermarket parts that are cheaper and more readily accessible for repair shops.
If your vehicle is more than five years old, on the other hand, then the repair shops and the insurance companies don’t necessarily have to use OEM parts.
Pay Attention to Your Insurance Coverage
In any event, which parts can be used will depend on the specific terms and provisions of your collision coverage in your insurance policy. So, if using OEM parts and only OEM parts is really important to you if your vehicle or your motorcycle should require repairs, then you need to check with your insurance agent.
Make sure that your policy requires OEM parts, or at least requires your insurance company to get your permission before using aftermarket parts. After all, we put a big investment into our bikes. They may cost as much as $25,000, $30,000, even $40,000 now. In fact, they cost as much as or even more than any other vehicle we may purchase. Your motorcycle may be the biggest purchase you make.
So pay close attention to what your insurance policy requires and what it provides for. Know what you purchase and purchase what you want when it comes to insurance coverage.
If you have any questions or problems, you’re welcome to reach out to me. We’ll get on the phone and I’ll help you sort it out.