Patti (whipartist) wrote,

Insurance insanity

I just called my insurance agent to set up coverage on the motorcycle I'm picking up tonight. It's about a $3K bike, but just for fun I had him quote me a price for collision and comprehensive as well as just liability.

The difference in price between the two is $283.56/year. That's basically 10% the price of the bike. It's easy to do the math here... is there a 1 in 10 chance that the bike will be totalled or stolen in one year of riding? Hell no.

As an aside, I once did this calculation and had it come out the other way. It was my first motorcycle, and a pretty cheap one. However, the difference in price between liability and full coverage was pretty small, and it came out to needing a little better than a 1 in 30 chance of destroying the bike in one year. Given that I was a new rider on a bike with a lot of (expensive to replace) plastic, lived and worked in San Francisco, and parked on the street, I thought that the odds were in my favor. I took full coverage. Two or three years later the bike got stolen, and the insurance company paid out more than I expected.
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