Does Motorcycle Insurance Cover Custom Parts in Arkansas?

Custom handlebars, an upgraded exhaust, saddlebags, chrome accessories, custom paint, and performance upgrades can make your motorcycle uniquely yours.

But those upgrades can also add thousands of dollars to the amount you have invested in your bike.

So what happens if your custom parts are damaged in an accident, stolen, vandalized, or destroyed in a covered loss?

The answer depends on your motorcycle insurance policy.

At My Neighborhood Insurance in Farmington, AR, we help riders throughout Northwest Arkansas compare motorcycle insurance options and understand how their bike, including aftermarket parts and accessories, may be protected before a claim happens.

Are Custom Motorcycle Parts Automatically Covered?

They may be, but you should never assume that every modification is fully covered.

Motorcycle insurance policies vary between insurance carriers. Some policies may include a limited amount of coverage for accessories, aftermarket equipment, or custom parts when the motorcycle carries comprehensive and collision coverage. Other policies may require additional Custom Parts and Equipment coverage, often called CPE coverage, or another endorsement.

The important question is not simply whether your policy provides custom parts coverage.

It is how much coverage you have compared with how much you have invested in your bike.

Custom motorcycle equipment can include:

  • Custom handlebars
  • Aftermarket exhaust systems
  • Custom paint or graphics
  • Chrome accessories
  • LED lighting
  • Upgraded wheels and tires
  • Custom seats
  • Saddlebags and luggage systems
  • Audio or electronic equipment
  • Windshields and fairings
  • Suspension upgrades
  • Performance modifications

If you have invested several thousand dollars in upgrades but your policy only provides a limited amount of accessory coverage, you could still face a significant out-of-pocket expense after a covered loss.

How Does Custom Parts Coverage Work After a Claim?

The type of coverage that applies generally depends on what caused the damage.

Collision coverage can help pay for damage to your motorcycle after a covered collision with another vehicle or object, subject to your policy terms and deductible.

Comprehensive coverage generally applies to certain non-collision losses, such as theft, vandalism, fire, storm damage, falling objects, or other covered events.

Your policy’s Custom Parts and Equipment coverage or accessory coverage may then determine how much of the value of your aftermarket equipment can be included in the claim.

For example, imagine you have added $6,000 worth of custom equipment to your motorcycle. If your policy only provides $2,000 of applicable accessory coverage, you should not assume the entire $6,000 investment would be reimbursed after a covered loss.

Exact claim payments depend on your carrier, policy language, coverage limits, deductible, and the circumstances of the loss.

That is why reviewing your coverage before something happens is so important.

Arkansas Motorcycle Insurance Requirements

Arkansas requires motorists to maintain liability insurance. The state’s current minimum liability limits are:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

These limits are commonly referred to as 25/50/25.

However, liability insurance is designed primarily to protect you financially when you are legally responsible for injuries or property damage to someone else.

It does not provide the same protection as collision or comprehensive coverage for damage to your own motorcycle.

If protecting your bike and its custom equipment is important to you, you should review your physical damage coverage and any applicable custom parts or accessory limits in addition to meeting Arkansas liability requirements.

You can also learn more about similar vehicle coverage options on our car insurance page.

What Happens If Your Custom Parts Are Worth More Than Your Coverage Limit?

This is where motorcycle owners can run into an expensive surprise.

Your motorcycle may have started as a stock bike worth one amount, but years of modifications can significantly increase the money you have invested in it.

Your insurer does not necessarily know that you added:

  • A $2,000 exhaust system
  • $1,500 custom wheels
  • A $1,000 seat
  • Custom paint
  • Upgraded suspension
  • Additional electronics or accessories

Unless those modifications are properly accounted for under the terms and limits of your insurance policy, you may not have enough coverage to replace everything after a loss.

This is also why understanding concepts such as actual cash value and replacement cost can be helpful when reviewing how different types of property may be valued after a claim.

Keep Records of Your Motorcycle Upgrades

Documentation can be extremely helpful if you ever need to file a claim involving custom motorcycle equipment.

Keep records such as:

  • Purchase receipts
  • Installation invoices
  • Before-and-after photographs
  • Current photographs of the motorcycle
  • Manufacturer and model information for major upgrades
  • Records of professional custom work
  • Appraisals, when appropriate

You should also tell your insurance agent when you make significant changes to your motorcycle rather than waiting until your next claim.

A modification that changes the motorcycle’s value or performance may affect the type of policy, coverage limit, or carrier that makes sense for you.

Review Your Custom Parts Coverage as Your Bike Changes

A motorcycle insurance policy that was appropriate when you purchased your bike may no longer provide the protection you need after several years of customization.

Consider reviewing your policy when you:

  • Add expensive aftermarket equipment
  • Complete a major custom build
  • Install performance modifications
  • Change the motorcycle’s appearance substantially
  • Purchase new saddlebags, electronics, wheels, or accessories
  • Significantly increase the amount you have invested in the bike

Even smaller modifications can add up over time.

An annual insurance review gives you an opportunity to compare the value of your current upgrades with the limits shown on your policy.

Highly Customized Motorcycles May Need Special Attention

Not every customized motorcycle fits neatly into a standard insurance policy.

A motorcycle with relatively common aftermarket accessories may be treated differently from a heavily modified bike, custom-built motorcycle, kit bike, or motorcycle with major structural or performance changes.

Carrier underwriting guidelines also vary.

An independent insurance agency can compare available options instead of assuming that one carrier’s rules will work for every motorcycle.

Why Work With an Independent Insurance Agency?

My Neighborhood Insurance is an independent insurance agency, which means we are not limited to a single insurance carrier.

That matters for motorcycle owners because carriers may differ in:

  • Custom parts and accessory limits
  • Available endorsements
  • Comprehensive and collision options
  • Deductibles
  • Eligibility for modified motorcycles
  • Discounts
  • Policy pricing
  • Coverage for additional equipment

Our team can help you compare available motorcycle insurance options instead of simply looking at the lowest premium.

We serve riders in Farmington, Fayetteville, Prairie Grove, Lincoln, Greenland, West Fork, and communities throughout Northwest Arkansas.

If you also insure your home, car, or other vehicles, it may be worth reviewing whether your policies can be coordinated or whether multi-policy discounts are available.

You can learn more in our guide to bundling home and auto insurance.

Protect the Motorcycle You Actually Ride

Your motorcycle today may be very different from the motorcycle that originally left the dealership.

Your insurance should reflect that.

If you have invested in custom paint, exhaust, wheels, seats, performance upgrades, electronics, saddlebags, or other aftermarket equipment, review your policy before you need to make a claim.

My Neighborhood Insurance can help you review your current motorcycle coverage, identify potential gaps, and compare options from multiple insurance carriers.

Call us at 479-935-1817 or contact My Neighborhood Insurance in Farmington, AR to request a motorcycle insurance review or quote.

We will help you understand your options so the coverage you choose better reflects the motorcycle you actually ride.