Many motorcycle shoppers plan to finance their purchase, but the question often arises: do you need insurance to finance a motorcycle?
The answer is YES. Most motorcycle financing companies will require the borrower to not only carry motorcycle liability insurance, but also collision or comprehensive coverage. Why? Because if the bike is damaged, stolen, or totaled, they want to be compensated financially. After all, the finance company effectively purchased the bike (less your down payment), and owns the bike (less the amount you have already paid off).
If you are planning to finance a motorcycle which is expensive to insure, such as any of the 1000+ cc sportbikes, you must factor in the extra expense of comprehensive motorcycle insurance coverage. Obviously, it is significantly more expensive than standard, state-minimum liability coverage. To pay the least amount possible, we recommend that you compare motorcycle insurance quotes from leading insurers – online!