For many motorcyclists, the allure of their ride extends far beyond transportation. A motorcycle can represent a canvas for self-expression and the pursuit of enhanced performance. From custom paint jobs to aftermarket exhausts to comfort upgrades, there are countless ways to make a motorcycle one’s own.
But how do these ‘mods’ align with insurance coverage? Here’s what your RideLife customers need to know when it comes to customizing their motorcycles.
James Reid, Senior Manager, Product Development, in Aviva Canada’s Lifestyle department is no stranger to motorcycle mods. As an avid rider himself, he says most brands offer a range of factory-authorized or aftermarket modifications and accessories.
“Some brands, such as Harley Davidson and BMW, have extensive catalogues with hundreds of options. You could easily spend $25,000 on a bike and another $10,000 on customizations,” he said.
Common options include custom exhausts for the performance enthusiast, heated hand grips for longer touring trips, windshields to reduce blast and pebbles for highway drivers, and custom seats and mirrors for increased comfort and visibility.
How do these mods affect insurance coverage? “If they don’t significantly alter the performance or characteristics of the motorcycle, it’s not an issue,” said Reid.
Acceptable customizations include:
- minor custom paint, mural, or graphic effects
- dealer-installed original manufacturer parts and accessories at time of purchase
- minor aftermarket customizations, including:
- larger or smaller windshield/screen
- saddlebags
- pegs, grips, footrests
- aftermarket mufflers or exhaust systems
- aftermarket air, oil fuel filters
- custom or extended seats
- frame sliders
- raised handlebars—if they conform to provincial regulations
- non-OEM tires—if they’re designed for use on a motorcycle.
Unacceptable modifications include:
- extensive custom paint job or mural, and/or graphic effects that exceed $5,000 in value or 20% of the motorcycle’s value, whatever is lesser
- custom-built gas tank, wheel fenders, altered frame or customized frame, or any other specifically designed components intended to replace the OEM parts, aside from items listed above
- any modifications that significantly alter performance or handling of the motorcycle, including:
- extended forks
- stretched or shortened frames (e.g. choppers)
- billet aluminum wheels or custom wheels
- use of automobile tires
- turbochargers, superchargers, or nitrous oxide systems
- bikes built with automobile engines or any use of automobile parts
- modifying the bike to be powered by any other fuel than that for which it was originally manufactured
- anything that does not meet provincial or federal vehicle safety regulations
- anything that exceeds more than 50% of the manufacturer’s suggested retail price
The importance of reporting customizations to an insurer
Reid says many mods improve the value of the motorcycle, and insurers need to know about them to make sure they’re appropriately covered for the investment made. In most provinces, RideLife has an optional endorsement for modifications that has a minimal effect on the premium.
“If there’s a total loss, the value of the modifications will be included in the settlement cheque. If we don’t know about them, we can’t fully indemnify the policyholder,” said Reid.
“We’ve unfortunately had situations where people have totaled their bike and are happy with the settlement and process until it’s realized that they haven’t reported customizations, and we can’t calculate the cash value on second-hand parts. They might walk away unhappy.”
Brokers play a crucial role in guiding clients through this process, helping them navigate the complexities of customization and insurance to secure the best possible coverage.
For more information about RideLife coverages, visit aviva.ca/ridelife.
