Liability insurance and financing? - Sportbike Forum: Sportbike Motorcycle Forums
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post #1 of 22 (permalink) Old 09-09-2007, 05:05 PM Thread Starter
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Liability insurance and financing?

Hey..

I'm looking into financing a 07 CBR from one of the local dealers. At the paperwork table A few of the dealers directly implied that I can get away with liability insurance depending on "how i finance" or something to that extent.

My dads telling me it's BS, and that maybe i'll get out the door with liability but as soon as the insurance co/bank finds out they will re-adjust the insurance to full coverage.

My question is weather or not it's possible to have liability insurance on a financed bike, and if possible what is the trick some of the dealers have me believing?

Sort of off topic, but i'm from NY and there isn't much riding season left(maybe 1.5 months), whats your guys opinion on buying the bike this season or waiting till next season? are there better deals to come? there giving 8.9% fixed apr on a 36month loan, which seems pretty good to me since i'm 19 and have had credit history for less than a year.

Last edited by slaya; 09-09-2007 at 05:08 PM.
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post #2 of 22 (permalink) Old 09-09-2007, 05:38 PM
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Who the hell buys a new bike, either with or without finance, and then doesn't fully insure it???????




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post #3 of 22 (permalink) Old 09-09-2007, 06:51 PM
 
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Quote:
Originally posted by cookeetree
Who the hell buys a new bike, either with or without finance, and then doesn't fully insure it???????
What he said.

If you can't afford full insurance on a new bike, you can't afford the bike. Sure would suck to have that loan payment and nothing to ride for it. Considering the risks of motorcycling, that's not a far-fetched scenario.

Last edited by Whoaru99; 09-09-2007 at 06:53 PM.
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post #4 of 22 (permalink) Old 09-09-2007, 07:59 PM
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Sounds like you've got one of those dealerships that's NOT looking out for your best interests.

Why not used - and why not after season close?

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post #5 of 22 (permalink) Old 09-09-2007, 08:50 PM Thread Starter
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Quote:
Originally posted by cookeetree
Who the hell buys a new bike, either with or without finance, and then doesn't fully insure it???????
Becuase after a month it's gonna be sitting in a garage for 7months..

Not sure if you know how to count but that's almost $3,000 in insurance on a bike that won't touch the road.

So, back to my original question?
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post #6 of 22 (permalink) Old 09-09-2007, 09:15 PM
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Originally posted by slaya
Becuase after a month it's gonna be sitting in a garage for 7months..

Not sure if you know how to count but that's almost $3,000 in insurance on a bike that won't touch the road.

So, back to my original question?
So, you're not going to ride it at all before putting it into storage? If so, I can understand where you're coming from. However, if you're going to ride it at all, don't run the risk. It just ain't worth it.

Can you change your policy after a the season ends? Down here, I can chop and change my policy as much as I like, as often as I like.

You must understand that my riding season is 365.25 days long.




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post #7 of 22 (permalink) Old 09-09-2007, 09:54 PM
 
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Quote:
Originally posted by slaya
Becuase after a month it's gonna be sitting in a garage for 7months..

Not sure if you know how to count but that's almost $3,000 in insurance on a bike that won't touch the road.

So, back to my original question?
In the garage. That's right where my bike was when the thief broke in & rode it to Mardi Gras...'Nuff said
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post #8 of 22 (permalink) Old 09-10-2007, 01:02 PM
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Originally posted by Rundog
In the garage. That's right where my bike was when the thief broke in & rode it to Mardi Gras...'Nuff said
We have two types of coverage down here; "full comprehensive" and "3rd party, fire and theft".

The second would be perfect for you guys who need to store their bikes. You're covered for damage to other people or their property, if your vehicle catches fire, or if it's stolen. It just doesn't cover damage to your vehicle in the event of an accident.




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post #9 of 22 (permalink) Old 09-10-2007, 03:49 PM
 
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Your dad is right. The loan company is going to make damn sure that you have insurance to cover THEIR bike. In Michigan you can get storage insurance that will cover the value of the bike due to the garage burning down, the bike spontaneously exploding, etc. You still have to get permission from the loan company to allow that kind of coverage. The risk of not having proper coverage, that others have stated, is that you could be making payments on a bike that is in the junk yard.

I'm not sure what kind of talk the dealership is giving you. The only thing I can think of is that they would get you a raw deal on financing (huge required down payment, high interest rate, etc.) to offset the potential loss on coverage. Still, I don't see why any finance company would do that. The dealer is trying to move a bike, and once you buy it you have to live with the contract.

Last edited by Thermide; 09-10-2007 at 03:52 PM.
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post #10 of 22 (permalink) Old 09-10-2007, 08:15 PM
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Never heard of lender that did not absolutely require full coverage insurance on the financed vehicle. Think about it, how much sense would it make for somebody to lend you thousands of dollars on an uninsured (or underinsured) vehicle?

Your dad's right- its bullshit.

"Fat, drunk, and stupid is no way to go through life son." - Vernon Wormer.- Dean, Faber College.
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