Now that you know a little about the standard types of motorcycle insurance coverage, you may want to consider purchasing additional protection for a brand-new bike.

Why do I need extra insurance on a brand-new bike?

Like other vehicles, motorcycles tend to lose value over time, according to National Appraisal Guides. And standard collision coverage and comprehensive coverage factor depreciation into the amount you are reimbursed for a covered claim.

The coverage limits on comprehensive and collision coverages are the bike's actual cash value. That means the maximum amount your policy would pay if your bike were totaled would be the bike's depreciated value immediately before the covered claim.

So, if your motorcycle is totaled while it's still nearly new, the actual cash value of your motorcycle may not be enough to replace your bike with a similar model. Also, if you're financing a totaled bike, its actual cash value might not be enough to pay off your loan. That's where additional motorcycle insurance coverage may be helpful for a brand-new bike.

Types of additional coverage for brand-new motorcycles

These additional types of coverage may be available as add-ons to your motorcycle policy. Some insurers may offer these coverages as a package to help protect your investment in your brand-new bike:

New motorcycle replacement coverage
If your motorcycle is totaled, new motorcycle replacement coverage helps pay to replace the totaled vehicle with a new motorcycle, rather than paying you the actual cash value (which may be lower) at the time of the accident.
Repair provision coverage
If your new motorcycle is damaged in a covered claim, this type of coverage helps pay for repairs without taking depreciation into account.
Loan/lease gap coverage
This coverage helps pay off an underwater loan or lease if your new motorcycle is totaled. Gap coverage works in conjunction with comprehensive or collision coverage. It helps pay the difference between your motorcycle's actual value and what you still owe on your loan or lease.