A Guide to Custom Motorcycle Insurance in Texas

For many Texans, a motorcycle is an extension of the owner’s personality and unique style. These personalized rides need personalized protection. Custom motorcycle insurance is specialized coverage designed to protect your unique investment and the passion you pour into your ride. At Rollo Insurance, we understand that your custom bike is one-of-a-kind, and we’re here to help you secure coverage that’s just as unique. 

What is Custom Motorcycle Insurance?

Custom motorcycle insurance is a type of motorcycle insurance specifically designed for bikes that have been modified, built from scratch, or are considered rare and valuable collector’s items. It goes beyond a basic policy to properly value and cover the unique parts, labor, and artistry that make your bike special.

Unlike standard motorcycle insurance, which usually pays the current market value (often a depreciated amount) for a stock bike, custom motorcycle insurance aims to cover the true cost of your personalized ride.

What are Unique Risks and Considerations for Custom Motorcycles?

Custom bikes face specific risks that make specialized insurance essential:

• Higher Value: The money you’ve invested in parts, paint, and labor can make your bike worth far more than a stock model.
• Specialized Parts and Labor: If damaged, repairs often require hard-to-find components and highly skilled, specialized mechanics, which can be very expensive.
• Theft Magnet: Unique and high-value custom bikes can be very attractive targets for thieves.
• Safety Concerns: Some modifications, especially performance-related ones or those that alter the bike’s structure, may be viewed as increased risk by insurers. Modifications that remove safety features (like mirrors) or violate legal standards can also complicate claims.
• Transportation Risk: Damage can occur even when transporting your custom bike to shows or events.

How Does Custom Motorcycle Insurance Differ from Regular Motorcycle Insurance?

The main differences are how your bike’s value is protected and what’s covered:

1. Agreed Value Coverage:

• Custom Motorcycle Insurance: This is often a key feature. You and the insurer agree on your bike’s value when you buy the policy. If your custom bike is stolen or totaled, you get that full agreed-upon amount, no matter how much it might have depreciated on a standard scale.
• Regular Motorcycle Insurance: Usually covers your bike for its Actual Cash Value (ACV), meaning replacement cost minus depreciation. This means you’d get less than what you paid for it or for its custom parts.

2. Custom Parts and Equipment (CPE) Coverage:

• Custom Motorcycle Insurance: This is specifically designed to cover the high cost of your custom parts, accessories, and modifications. Standard policies might only include a small amount (e.g., $1,000) of accessory coverage. Custom policies allow you to increase this coverage significantly (often up to $30,000 or more) to match your investment in upgrades. This coverage usually does not depreciate your custom parts.
• Regular Motorcycle Insurance: If you have any CPE coverage, it’s usually a small, built-in amount, often subject to depreciation.

3. Valuation Process: For custom bikes, insurers may ask for detailed records like receipts for parts and labor, installation invoices, photos, and sometimes even a professional appraisal to confirm the agreed value or the value of modifications.
4. Cost: While you might expect it to be much more expensive due to value, custom motorcycle insurance can sometimes be surprisingly affordable because many custom bike owners ride less frequently and tend to be very careful. However, the cost per dollar of coverage can be higher due to specialized parts.

What Does Custom Motorcycle Insurance Cover?

A comprehensive custom motorcycle insurance policy combines standard coverages with specialized protection for your unique build:

• Agreed Value or Custom Parts & Equipment (CPE) Coverage: As explained above, this is critical for protecting your unique investment.
• Liability Coverage: Protects you if you’re at fault for injuring someone or damaging their property in an accident. This is legally required to ride on public roads in Texas.
• Collision Coverage: Pays for damage to your custom motorcycle if you hit another vehicle or object.
• Comprehensive Coverage: Protects against non-collision damage like theft, vandalism, fire, natural disasters (like hail or floods), and falling objects. Theft is a major concern for custom bikes.
• Uninsured/Underinsured Motorist (UM/UIM): Protects you if an uninsured or underinsured driver causes an accident.
• Original Equipment Manufacturer (OEM) Parts Coverage: Some policies pay extra to ensure repairs use parts from the original manufacturer if applicable.
• Carried Contents Coverage: Covers your personal belongings (like helmets, gear, phones) if they are damaged or stolen with your bike.
• Roadside Assistance: Essential for custom bikes and allows for proper towing if needed.

What is the Average Cost of Custom Motorcycle Insurance in Texas?

The cost of custom motorcycle insurance in Texas varies significantly. It depends on factors like:

• The Agreed Value or Total Custom Parts Value: The higher the value, the higher the premium.
• Your Riding Record: A clean driving record is crucial.
• Your Location: Rates vary by city and ZIP code.
• Mileage Limits: Choosing lower annual mileage limits can reduce costs.
• Storage: Secure, enclosed storage (like a locked garage) can help.
• Type of Customization: Performance modifications (engine upgrades) can sometimes increase rates more than cosmetic changes (paint jobs, chrome) due to perceived higher risk. However, cosmetic changes can increase replacement cost.
• Deductibles: Higher deductibles mean lower premiums.

To give a very broad idea, annual premiums for comprehensive custom motorcycle insurance in Texas could range from approximately $600 to $1,500+ per year. Keep in mind that a standard bike might be $300-$700, so custom can be 2-3 times more, but still very affordable compared to the investment. For extremely high-value, rare builds, costs can be significantly higher.

Keep Your Ride Protected

Your custom motorcycle is a unique creation, built with care and individuality. Protecting it with specialized insurance ensures that its full value is recognized on the road or at events. At Rollo Insurance, we provide coverage tailored to the specific needs of custom bike owners. Reach out today for a custom quote and let us help you safeguard what makes your ride truly one of a kind.