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Discussion Starter #1 (Edited)
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.
 

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cookeetree said:
Who the hell buys a new bike, either with or without finance, and then doesn't fully insure it??????? :huh:
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.
 

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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?

threemo
 

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Discussion Starter #5
cookeetree said:
Who the hell buys a new bike, either with or without finance, and then doesn't fully insure it??????? :huh:
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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slaya said:
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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slaya said:
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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Rundog said:
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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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.
 

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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.
 

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Discussion Starter #11
I spent the entire day researching the situation.

Apparently there are 2 types of loans. Since i'm dealing with Honda i'll talk about those.

1) Honda Installment Plans (regular loan, with a lein on the title)
2) Honda Revolving Credit Plans (simply a Honda credit card, with a few % higher on apr, but liability insurance will suffice)

I called up Honda finance directly, and they told me option (1) would be exactly what you guys are talking about, but they directed me to option (2) which I wasn't able to speak with someone as of yet, but will find out tomorrow.

My Honda dealer told me if it's under 10grand honda doesn't care? not sure, i guess i'll find out when i speak to Honda.
 

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slaya said:
I spent the entire day researching the situation.

Apparently there are 2 types of loans. Since i'm dealing with Honda i'll talk about those.

1) Honda Installment Plans (regular loan, with a lein on the title)
2) Honda Revolving Credit Plans (simply a Honda credit card, with a few % higher on apr, but liability insurance will suffice)

I called up Honda finance directly, and they told me option (1) would be exactly what you guys are talking about, but they directed me to option (2) which I wasn't able to speak with someone as of yet, but will find out tomorrow.

My Honda dealer told me if it's under 10grand honda doesn't care? not sure, i guess i'll find out when i speak to Honda.
Still not buying liability will suffice...

If the bike gets stolen or otherwise wrecked at no fault of Honday, they're not going to just suck it up and say "oh well, that the way it goes sometimes..."

They may be totally correct that liability is not required to secure the credit under the card option, but that doesn't necessarily mean you're off the hook to make the payments if something happens.

You have to ask the right question to get the right answer, or you can ask a question in a way that drives the answer you want to hear.

So, it's really two questions.

1. Do I need full coverage or just liability to get the credit?

2. If the answer is liability, then the next question is "Who pays if something happens to the bike with only liability insurance on it?"

I cut back on insurance every year for storage. During the time I use the vehicle I have full coverage. When I store it for the winter, I drop the coverage to comprehensive which covers fire, theft, etc. and also drops the premium quite a bit. However, as mentioned, whether the lien holder allows that is something else - I don't have a lien on the vehicle I'm using for the example.
 

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I ride an 86 kawi, if my bike gets stolen then I have no bike and no insurance money, however full coverage for a year is more than I paid for the bike, so buy used and you don't have to worry as much.
 

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If your riding a bike thats fairly new, may as well fully insure it.

I bought my bike used at about 1/2 of what a new bike costs.... Put full coverage on it, got in a wreck - bike was paid for... plus they gave me more than enough to cover the few years of insurance on it... All in all, I now have a bike which was free - and rode it for a few years for free....


The first few years though I didn't see the point... Now looking back I would have shot myself in the foot had I not had full coverage on it after being in a wreck... And I wrecked not doing anything stupid, no stunting... just hit a patch of sand in the road.


Now after the bike has been more then paid for I lowered my insurance off of full because they won't give me a dime more for my bike until I fix it... And well, I"ve "Fixed" it to their liking but they aren't willing to pay for the same parts that they already paid for - so it doesn't make sense anymore.


Full Coverage is worth every penny though - ESPECIALLY on a new bike - :2cents:
 

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Insurance

Well, here is what i have to say about that...there is a company that does not require full coverage insurance...kawasaki's good times card is a credit account, not a loan and they do not maintain insurance records because it is just as if you had used a regular credit card to pay for the bike (the good times card is an HSBC card like sears cards, retail store cards, etc.) I would not recommend that you only maintain liability insurance, but i own a 2007 ninja that was purchased with one of these cards so i can tell you first hand that insurance is not an issue there. Thanks.
 

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slaya said:
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.
One crown jewel , is to get an extended warranty, just in case dude
 

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This I know is an old thread but last week I had a similar experience.

My local Yamaha dealer just told me as long as I finance $9,999.99 or less I can hold liability on the bike. Supposedly both GE/Yamaha and Capital One allow this. Going back Thursday to pummel them with questions.
 

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I spoke with two other dealerships. One was a part of a big franchise.

The second two I spoke with I was told that there are no finance companies that allow you to have liability only, it's just that they don't check for insurance coverage at all and salesmen tell people about this when they (like me) are hesitant to buy after mentioning full coverage being too expensive.

All-in-all I filled out an app today online and handled everything by phone and am going to pick a 2012 R1 up tomorrow some time and to give them money down for it.

I still am hesitant though with how to insure this with Progressive and will get it insured before I sign the papers. I am 22 and no car on the policy and am afraid they won't insure me at all and I don't want to be stuck with it. I also don't want them to request the title or anything showing I own it. I am screwed if so and will do everything to avoid this.
 

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Got my bike.

Financed with Capital One and purchased liability with Progressive for a year.

The sales manager told me he had been working for the dealer for over 10 years and assured me I was not the first to ask about liability on a new bike. He couldn't tell me for sure I would never run into problems but he did say in his time working there he has never heard of any customers being contacted by the lender asking for proof of full coverage.

My take on how some get away with it is like this.

You have installment loans and you have revolving loans like a line of credit.

With an installment loan the bike is the collateral and revolving loans are basically unsecured loans w/ the title still being held.

If I run into problems I will report back.
 

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