Insurance Corner: Chrome parts and equipment

Chrome, chrome, and more chrome…. can any of us leave a dealership without it? Nothing comes cheap when you buy a motorcycle, so when you add a piece of chrome here, and a piece of chrome there, the total cost of the bike increases as well.

Ask yourself this question, “If my bike were stolen, or there was a total loss to my bike, how much would I get from the insurance company?” Remember, to the insurance company, your bike is an automobile.

Read your policy. At the top it clearly states, “Texas Auto policy.” Unlike your auto policy, insurance companies will allow you to add additional coverage for Chrome, Parts, and Equipment (CPE). The cost of additional coverage may vary depending on the company you are insured through.

Look at PROGRESSIVE for an example. They allow $1,000 of CPE coverage at no cost to you. They charge approximately $30.00 per thousand for any additional CPE coverage. So, if you have a total of $5,000 in additional chrome, parts, and equipment (CPE), you need to add $4,000 to your policy. The cost will be approximately $90 – $100 added to your total premium for the year.

It is also important to remember that in case of a loss, the CPE will be depreciated. My advice is, keep track of how much CPE you have invested in your bike. Keep receipts, and take pictures of your bike at least once a year of both sides and the front. It makes the insurance adjusters job easier to determine the value of your bike.