Does Motorcycle Insurance Cover Theft?

If you’re concerned about whether motorcycle insurance covers theft, the answer is yes. Apparently, motorcycle theft is a huge problem in the US; according to NICB, there have been 54,736 motorcycle theft reports as of 2022.

Further trend analysis reveals that over 50,000 motorcycles are stolen annually across the country. Plus, ever since 2019, motorcycle theft has increased by 25.1%. Given the widespread nature of this issue, it is essential to ensure that your motorcycle insurance policy includes theft coverage.

Types of Motorcycle Insurance that Cover Theft 

When it comes to financially protecting your motorcycle against theft, there are two types of insurance policies that provide the necessary coverage, which include comprehensive insurance, and gap insurance.

Each of these policies has a unique role in safeguarding your motorcycle, and here’s how they work.  

If you’re looking for cheap motorcycle insurance that covers theft, along with other accidental damage, consider checking our affordable insurance solutions.

Comprehensive Insurance

After your motorcycle gets stolen, the comprehensive insurance policy will cover its market value minus deductibles. If you decide to buy a new motorcycle after your current one gets stolen, with comprehensive insurance, you can pay for the new motorcycle up to the coverage limit.

In case your motorcycle gets recovered, but some parts are damaged or missing, comprehensive insurance will cover the replacements of those parts, along with the repair expenses required.

For example, if your motorcycle is currently worth $10,000, and you have a deductible of $500, so your comprehensive insurance will cover up to $9,500.

Gap Insurance

Gap insurance covers motorcycle theft as well, but only for motorcycles that have been purchased on loan. If your motorcycle is stolen and you owe more on your loan or lease than its market value, gap insurance covers the difference.

For example, if your motorcycle’s current market value is $8,000, and if you still owe $10,000 for purchasing it on loan, then the gap insurance will cover the gap of $2,000, which means you’ll get a total compensation of $10,000. So, by applying the gap insurance, you can protect yourself from any outstanding debt after your motorcycle is stolen.

Plus, you also get compensated for the motorcycle fully, which saves you from the risk of detrimental financial loss. Simply put, if you’re purchasing the motorcycle on loan, or if you’re financial it on lease then you should definitely consider the gap insurance.

How to File a Motorcycle Insurance Claim After a Theft?

Claiming motorcycle insurance after a theft is pretty simple, but to ensure that you get the coverage, it is essential to follow the steps as follows.

• Report the Theft to the Police: It is legally necessary to file a police report immediately after the motorcycle theft. The insurance company will follow up and verify the police report to determine whether you’re legally eligible for the coverage. After reporting it to the police, make sure to note down the police report number.
• Gather Necessary Information and Documents: Before contacting your insurance company, make sure you have the police report number, a copy of the police report, your policy number, your motorcycle’s registration number, and your vehicle identification number (VIN), along with the date, time, and location of theft.
• Contact Your Insurance Company: You can either call your insurer, contact them by email, or visit their office in person, whichever is more feasible for you to inform them of the theft, and claim your motorcycle insurance. Initially, provide your policy number, police report number, and details of the theft. Your insurance company will guide you through the claims process, which may involve submitting additional documents and a statement.

Remember, the sooner you report the theft to the police, and contact your insurance company the faster you can initiate the claims process. On average, it takes most insurance companies about 30 days to verify the insurance claim of your stolen motorcycle.

In some cases, it can take longer, depending on whether there are any additional complications involved, or the number of verifications your insurer is due to process.

According to Coalition Against Insurance Fraud, it was reported that 10% of all insurance claims are fraudulent which leads to insurance fraud theft of $308.6B per year.

In many cases, motorcycle thefts are intentionally staged to acquire money from insurance companies, and that’s why most insurance companies have a rigorous verification process to identify the legitimacy of the claim.

Don’t worry, if you have followed the steps mentioned above, you shouldn’t face any problems at all. You would have a valid police report to back up your insurance claim, along with the essential documents and information to assist your insurer with the verification process.

According to NICB, as of 2022 more than 40% of stolen motorcycles have been recovered by law enforcement agencies. So, there’s also a high chance that you may get your stolen motorcycle back. Regardless, you should claim your motorcycle insurance as soon as possible to mitigate the risks.

Does Home or Renters Insurance Cover Motorcycle Theft?

It is a common misconception that home or renters' insurance covers motorcycle theft, but it does not. Your home or renter’s insurance only covers assets or items in your home or around it, it does not cover motor vehicles.

If your motorcycle gets stolen from your home’s yard, parking space or garage, it will not be covered by your home or renter’s insurance. The only way to ensure that your motorcycle is financially protected against theft is to have active motorcycle insurance, typically comprehensive insurance, or gap insurance.

Although home or renter’s insurance does not cover motorcycles, but it does cover accessories and related items such as:  

• Helmet
• Gloves
• Jacket
• Vest
• Boots

Well, there’s another common concern, does motorcycle insurance cover medical bills? Yes, it does, but for that you will have to get other coverages such as liability insurance, personal injury protection insurance, medical payments (MedPay) insurance, or uninsured/underinsured motorist coverage.

Top Motorcycle Models Targeted by Thieves

There are certain brands of motorcycle that are common targets of theft. According to recent trends, the following includes the most stolen motorcycles in the US as of 2022.

• Honda: 10,631 thefts
• Yamaha: 8,358 thefts
• Harley-Davidson: 6,333 thefts
• Kawasaki: 6,260 thefts
• Suzuki: 4,886 thefts

Tips to Prevent Motorcycle Theft

If you have a motorcycle, or if you’re about to buy one, it is essential to take the necessary steps to prevent motorcycle theft. On average, 4,651 motorcycles are stolen throughout the US.

So, this means if you don’t take adequate security measures, then your motorcycle might get stolen as well. Not to mention, by ensuring effective security measures, you reduce the risks of motorcycle theft, which can also help you benefit from reduced motorcycle insurance premiums.

Here are some effective tips that you should follow to protect your motorcycle from theft.  

• Make sure to park in well-lit areas, lock your ignition, and remove your keys.
• Lock your motorcycle even if it’s safely parked in your home’s enclosed garage.
• Invest in sound alarms for motorcycles, this can instantly alert you or anyone nearby.
• Install a CCTV camera in your garage or parking space or keep your motorcycle under the purview of any CCTV camera nearby.
• Install a GPS tracking system on your motorcycle to actively locate it. This can help you recover the motorcycle and also prevent an attempted theft.  
• Place unique marks or designs on your motorcycle, so if it gets stolen, you can use that to identify it.

Final Tip: Stay Insured to Protect Yourself Financially from Motorcycle Theft

Unfortunately, there is a high chance of motorcycle theft throughout the country. While some neighborhoods are safer, there’s still a substantial risk that your motorcycle may get stolen.

Not to mention, you will also ride to other places, and you would eventually have to park your bike somewhere, which may be less secure. So, there’s always a risk here. The most effective way to protect yourself financially from motorcycle theft is to ensure that you have the right policy that covers motorcycle theft, which includes comprehensive insurance, and gap insurance.

As these two policies are optional, you can get either one of them, or you can get both of them for increased protection. Although, you would only require gap insurance if you have financed your motorcycle on a loan or lease. So, that note, comprehensive insurance is the ultimate policy to cover motorcycle theft.

If you need help getting motorcycle insurance that covers theft, you can find our nearest available agent, or you can contact us for a free quote. Our agent will answer your questions and suggest the best insurance options that cover motorcycle theft within your budget.

Frequently Ask Question

What insurance covers theft if your motorcycle is stolen?

Comprehensive insurance, and gap insurance are the two types of motorcycle insurance policies that cover theft. The difference is that comprehensive insurance will cover your motorcycle whether it’s purchased in full payment or is financed on loan. On the other hand, gap insurance also covers the additional amount that you owe if your motorcycle gets stolen after acquiring it on a loan or lease.

Does full-coverage motorcycle insurance cover theft?

Typically, full-coverage motorcycle insurance includes comprehensive insurance. As long as your full-coverage motorcycle insurance has comprehensive insurance in it, it will cover motorcycle theft.

What does comprehensive motorcycle insurance cover?

Comprehensive motorcycle insurance covers any accidental damage that is beyond your control or is incurred by a natural outcome. It covers financial compensation for your motorcycle due to theft, vandalism, fire hazard, and natural disasters like floods, earthquakes, and storms, among others.

Should I claim insurance right after my motorcycle is stolen?

Yes, but first you should file a police report, as it is a legal requirement, and it will also boost your chances of getting the insurance coverage. After filing the police report, contact your insurance company as soon as possible to claim motorcycle insurance for theft. The sooner you claim it, the higher the chance of getting financial compensation, plus it will also help you recover the financial loss faster.