Progressive Insurance

lkraus said:

I think dpmonk's bike was covered under "Total Loss" coverage. More common is "Comprehensive" coverage, in which factory-installed options are covered as part of the bike, and dealer- or owner-installed farkles are accessories. Progressive's comprehensive coverage has limits:
LIMITS OF LIABILITY
1. The limit of liability for loss to a covered motorcycle or non-owned motorcycle is the lowest of:
a. the actual cash value of the stolen or damaged property at the time of the loss reduced by the applicable deductible;
b. the amount necessary to replace the stolen or damaged property reduced by the applicable deductible;
c. the amount necessary to repair the damaged property to its pre-loss condition reduced by the applicable deductible; or
d. the Agreed Value shown on the declarations page for that covered motorcycle.

Without special provisions, Progressive typically covers up to $3000 in accessories.

Progressive also offers the optional Total Loss coverage:
INSURING AGREEMENT-TOTAL LOSS COVERAGE
If there is a total loss to a motorcycle shown on the declarations page and you have paid the premium for this coverage, then subsection 1 of the Limits of Liability provision under this Part IV will not apply to that total loss and the following shall apply:
The limit of liability for a motorcycle shown on the declarations page for which Total Loss Coverage has been purchased is as follows:
a. we will pay the Manufacturer Suggested Retail Price of a current model year motorcycle that is the same make and model as the motorcycle for which this coverage is shown on the declarations page.

Being based on the value of the bike at the time of loss, comprehensive would not cover the depreciation that occurs the instant the bike leaves the showroom. The value of the bike is based partly on used bike values, which typically are not affected very much by the cost of factory options. Total Loss could replace a three year old bike with a new one.

For a new bike, where options can easily be 25-30% of the bike's cost, I'd talk to an attorney before accepting a base model as a "Total Loss" replacement. I think an argument could be made that the VIN number on the declarations page defines the model and as such includes all the factory installed options.

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