Motorcycles are a hefty investment. While it may seem that motor
vehicles are what we have to deal with the most, motorcycles are
rather expensive and valuable as well and it is important to insure
motorcycles just as we would any other type of motor vehicle. This
type of thing does not only apply to motorcycles that are already
owned; motorcycle dealers need motorcycle insurance as well, to
protect the investment that they have made into their dealership.
While the reasons for having motorcycle dealer insurance are a
bit different than the reasons for having regular motorcycle insurance,
the need is still the same and the law still holds statutes for
those individuals who sell motorcycles as well.
Usually, there are some requirements for those dealers that wish
to purchase motorcycle dealer insurance. Insuring motorcycle dealerships
is often a big risk, and it is important to decrease the risk in
every way possible. Fulfilling certain requirements not only decreases
the risk for being turned down for insurance, but it also decreases
the amount that motorcycle dealers have to pay in premium, which
is proportional to the risk that is being taken on by insurance
First of all, it is important that you maintain your motorcycle
dealership year round. Normally premiums are paid for a whole year
of coverage, and not smaller increments like are done with regular
personal motorcycle coverage or vehicle coverage. If your dealership
is operated year round, you have a better chance of obtaining affordable
deals on motorcycle dealer insurance.
Secondly, having a good credit rating and a motorcycle dealership
business in good standing is another way of obtaining an affordable
premium for motorcycle dealership insurance. If your credit is
fair and your business is in fair standing, the risk on the insurance
company is a great deal less and you are that much more likely
to not only be able to obtain coverage, but affordable motorcycle
dealer insurance coverage at that.
Motorcycle dealer insurance coverage protects against liabilities
that arise out of the operation of motorcycles on the dealership
property as well as liabilities that arise out of the ownership
of the dealership, like test drives. In addition, many motorcycle
dealer insurance policy grantors require that full coverage be
obtained by the purchaser before the bike is taken off of the lot
after purchase, thereby decreasing the risk on them once again.
Motorcycle insurance and motorcycle dealer insurance are all about
risk, and transferring risk from person to company, so on and so
forth. The less the risk that you are trying to transfer over to
the insurance company, the more likely they are going to be to
grant you an affordable insurance policy premium.