You're giving insurance companies WAAAAY too much credit. Reality is:
Say if you just bought the bike for 7k, owe about 8700 on it and you total it on the way home from the dealer, your ins. will payoff it's actual VALUE. Meaning, once you pulled it out of the showroom, that 7k bike is now worth about 5800. THAT'S what the insurance co. will pay YOU. They don't care what you owe on it or what you paid for it. If you want loan protection insurance, talk to your lender. It's insurance that will payoff your loan if you lose the collateral (bike) lose your job, or die.
"It's easier to get forgiveness than permission."