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Discussion Starter #1
Is it mandatory that you have full coverage on a financed bike, or can you have just liability. Im trying to get on this promotion kawa is having but I been gettin insurance quotes for like 5600$ a year. Im 21 with a fairly clean record[:I]. I been searching old post but no one really made it clear or not that it was a must to fully cover an financed bike. This is the first thing I will be insuring by myself, so I know very little bout the rules and regs. of insuring.
 

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You will be required to have full coverage on a financed bike, its usually in the terms of your financing/loan from Kawi or whatever bank it was through.

State farm is normally the cheapest, but only if you have a clear record. If you have tickets any insurance company is going to have you "grab your ankles."
 

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Discussion Starter #3
Okay second question. I read on an older post that if you purchase with a credit card its like using cash an you won't have to carry full coverage. Is that true?
 

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Originally posted by bosshogg337

Okay second question. I read on an older post that if you purchase with a credit card its like using cash an you won't have to carry full coverage. Is that true?
yep since you paid the lein holders on your credit the lein holder will be you...it depends on who you have your loan through on wether or not you have to have full coverage i don't have full on mine...but mine is through household whereas kawasaki requires full coverage...i'm in the same boat 21 but i have a shitty driving record.
 

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Yes that is true but I wouldn't want to get stuck with a ridiculous credit card intrest rate.

You should consider the option of getting a personal line of credit from a bank and then using that to pay for the bike. That way the intrest rate will be similar or even less to what you would have got had you financed. Also, you won't have to pay a set payment on the PLC, you can pay whatever you want as long as its over the minimum monthly payment (much like a credit card).

Then you can just get liability on the bike although I would recommend that you get some sort of theft coverage at least.
 

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That is correct, since a credit card has no collateral. Financing takes the bike as collateral to the loan while a credit card is unsecuritized.
 

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if you use kawasaki credit you wont need to get full coverage, but the interst is going to be about 17.8%. however if go you with their 0-0-0 plan(finace), you will need to get full coverage. im 20, turning 21, and i paid $500 for liability this year on my 01. i payed through a VISA credit card however when i bought the bike.
 

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Does the bank require you to show proof of insurance? Just because you "SAY" you'll carry full coverage doesn't mean you "HAVE" to. They just want to be sure that if you wreck the bike, they will still get their money out of you, or the insurance company.
 

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Originally posted by TommyV

Does the bank require you to show proof of insurance? Just because you "SAY" you'll carry full coverage doesn't mean you "HAVE" to. They just want to be sure that if you wreck the bike, they will still get their money out of you, or the insurance company.
When I bought my bike, the financial company I got my loan through wanted to be listed as the lienholder on the insurance until I paid off the loan. This is something that is in my contract and was required before they'd fork over any money. So, they are requiring me to carry full coverage and they will also know if I make any changes to my insurance coverage because they are the lienholder. I'm assuming this is how all the other financial institutions do it as well. So, basically, when I bought my bike, the dealer had to call Progressive to make sure I had full insurance and then they called my financial company to make sure they were going to pay the money. Hope this helps...
 

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i dont know about other places but when i bought my bike this year in new york and i went with the kawasaki 3.9% financing for 36 months through household bank they made me get fire and theft for a full year and the liability i can pay for either 6 months or 12 months. they said that household would require me to get collision if the total sale price was over $10,000.00, which it wasnt and i didnt get. if i got collision on my bike they wanted like an extra 4000 a year.
 

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maybe the best thing to do for us young guys is to get $2k saved up and use that a down payment and put the rest on the kwai card or other credit card with low interest.
 

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Discussion Starter #12
yeah art thats pretty much what i plan on doing now, put 1500$ and get an low intrest credit line. 'preciate all you guys help too. hopefully soon i'll really be part of the club.
 

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I got my bike with no money down and only have liability. MBNA will usually give lines of credit up to $25,000 to just about anyone. I went to LendingTree.com and MBNA called me back. UNSECURED line of credit (meaning I have the title to the bike) in under 2 hours. Bike was mine. Only downside is if I dump it, I'm still stuck paying $150 a month for a bike I can't ride. I would really recommend LendingTree and going with a line of credit (most MC loans require full coverage) -- don't go with a bank, they suck. Just my two cents...
 

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Laws will vary from Stae to State but basically just to clarify what a few people said.

Kawasaki Credit Card: Lienholder - Full coverage
Bank/Finance Company Installment Loan: Lienholder - Full coverage

Revolving Credit Card: No lienholder - Liabilty coverage
Line of Credit: No lienholder - Liability coverage

If you can't tell, look at your registration. If it shows a lienholder, you'll need full coverage. No lienholder, you'll just need liability.

Another way is who has the pink slip? If you got it, liability only. If some company still has it, full coverage.

Best way to have your insurance come down is stay with same company if you can to establish tenure, keep your driving record clean, and well, age a little helps too.

Also, check to see if can get multi-vehicle discounts by insuring car and bike with same company. Or, some places, like State Farm in certain areas will give a multi car discount if you live under with same roof (Parents for example) with someone else insured by them. Doesn't have to be joint policies, just under same roof. Doesn't hurt to ask.

Also double check your deductables. Some places have deductables at 100, 250, 500, 750 and 1,000. And on exotics (cars mostly) as high as 2,000 and 5,000. Sometimes altering the deductable can have a big variance on your premium. For example, maybe have the comprehensive at 100 or 250, but have collision at 750 or 1000. Don't have your deductables too high that you couldn't swing them if a claim had to be filed.

Usually the younger you are the higher your deductables have to be, opther wise it's too expensive. As you age and rates drop you can usually lower the deductables.

Good luck you guys.

-Flash
 

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so with the kawi credit crad, we still need full coverage? i thought it was only if we got it finaced through them?
 

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Arturo,

Correct, the Kawasaki Retail Credit Card is carried by a finance company doing business under the name "Retail Services" and if you use that card your lienholder will be "HRSI Revolving" out of Carol Stream, Illinois.

-Flash
 
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