Collision insurance covers repairs for damage sustained to your motorcycle in a collision accident, including a collision with another vehicle, a mailbox, sign, utility pole or any other obstacle or stationary object. Unlike liability motorcycle insurance, which is mandatory (except for some vehicles like ATVs and dune buggies in some states), collision coverage is generally optional and only required in specific circumstances, such as if your bike has a loan.
If you own a motorcycle, ATV, UTV, dune buggy, or scooter that is worth more than it would probably cost to fix, it is probably worth buying collision coverage for your vehicle. If your bike is worth less than it would cost to fix, on the other hand, you most likely do not need collision coverage. This is because your insurance policy will only compensate you for what the vehicle is worth.
You may also be required to carry collision coverage if your bike is financed. Collision and comprehensive insurance are often a condition of financing for the life of the loan.
You should always know the value of your motorcycle, how its value changes over time and the value of customized parts and accessories to make sure you get adequate coverage.
Along with collision insurance, you may want to consider accessory and accessory coverage if your bike is very customized. This type of coverage is called custom parts and equipment (CPE) insurance, which covers damage to custom equipment.