As you enter the dealership financing office when closing your motorcycle purchase, you may not only be offered a motorcycle loan. There are a variety of auxiliary products offered by motorcycle dealers which include products like extended warranty, pre-paid maintenance, theft protection and lo-jack.
One of the questions many motorcycle buyers ask frequently is “Do I really need a Theft Protection device or deterrent if I a purchasing theft protection insurance?” To answer this question you really need to analyze what each of the products covers.
Most thief protection option offered through motorcycle dealerships come in two forms: Theft Deterrents and LoJack.
Theft Deterrents
A theft deterrent or etching typically comes in the form of data dots and/or warning labels which are placed on your motorcycle to help police identify it in the event it is stolen. These labels also deter thieves from taking your bike in the first place.
The way these labels typically work is that if they are pealed off your bike they leave an adhesive mark that is only identified by a black light and is smaller than a sand grain. This helps police identify your bike when it is stolen and thieves have no idea it is even there.
The benefit of a theft deterrent is that if your bike is stolen there is typically some financial protection for you that will help you replace your motorcycle if it is not recovered in 30 days.
For instance, you may get 3 years of product protection if your bike is stolen and reimbursement up to $5000 if police can not recover it in 30 days. This benefit is typically good towards a new motorcycle purchase or paying off your motorcycle loan.
LoJack
Lo Jack is a technologically advanced theft deterrent that uses radio signals to help police pinpoint where your motorcycle is after it is stolen. This security system is completely proven to work so much that LoJack guarantees it can get your motorcycle back in 24 hours. Due to LoJack’s advanced capabilities and effectiveness, it is a bit more costly than a basic theft deterrent.
To decide if a theft deterrent is right for you, it is important to consider your motorcycle insurance coverage and the likelihood of your vehicle being stolen. If you have full theft coverage on your motorcycle insurance policy you may feel a theft deterrent is not necessary.
However, you must remember that motorcycle insurance will only pay you for the depreciated NADA value of your motorcycle. If you have a motorcycle loan your motorcycle theft insurance may not pay off the full value of your motorcycle loan.
As a whole, considering the rate at which your motorcycle will depreciate and how this compares to the rate you will pay down your loan is a very important in deciding if a theft deterrent is a wise financial decision.
Remember a theft deterrent will only deter thefts from stealing your bike in the first place which overall is the best situation for you.
Posted by Administrator in Insurance