Insuring a custom bike: agreed value explained
Why a one-off motorcycle needs different insurance, the difference between market value and agreed value, and what to tell your insurer.
By Chris ·
Insuring a one-off motorcycle isn't the same as insuring a standard bike off a dealer's floor. Get it wrong and a claim could pay out a fraction of what the bike is worth, or not pay out at all. Here's what to understand before you buy.
Why customs are different
Standard insurance works out what a bike is worth from its make, model and year. A custom built on a 1982 BMW R100 might be worth three or four times a standard R100, because of the parts, the paint, the hours and the builder's name. A standard policy has no way of knowing that.
Market value vs agreed value
Market value is what most policies pay: what it would cost to buy the same bike again at the time of the claim. For a one-off, there's no "same bike", so the insurer may fall back on the value of the standard model it was built from.
Agreed value means you and the insurer agree what the bike is worth when you take out the policy, usually backed by photos and a valuation. If the bike is stolen or written off, that's the figure the insurer works from, rather than a figure argued over after the event. For a custom, it's usually the one to ask for.
Policies differ, so always read the wording on how an agreed value is paid and when it needs renewing.
Declare every modification
Insurers ask about modifications because they change the risk and the value. Leaving something out, even something that seems minor, can give the insurer grounds to reduce or refuse a claim. Make a list with the builder: engine work, frame changes, brakes, suspension, wheels, exhaust, lighting, paint, seat. Keep it with your build sheet and receipts.
Get a valuation
An independent valuation from a recognised provider supports an agreed-value policy and gives you confidence in the price you're paying. It's worth getting before you insure, and updating every few years as values change.
Other things worth asking about
Limited mileage cover: cheaper if the bike is a weekend or summer machine.
Laid-up cover: reduced cover for the months the bike is in storage.
Club membership discounts: some specialist insurers offer them.
Where the bike is kept: secure garaging, ground anchors and trackers can all bring premiums down.
Cover while it's being delivered: check who insures the bike in transit, and when it becomes your responsibility.
Use a specialist
Comparison sites are built for standard bikes. Specialist motorcycle insurers, especially those used to classic and modified bikes, understand agreed values and modifications and are usually the better route for a custom.
Saddle Row is working with specialist insurers so we can point buyers in the right direction. In the meantime, read how buying works and our guide on what to check before you buy.
This is general information, not insurance advice. Always check the policy wording with the insurer.
