Does financing a motorcycle through a bank force you to need full coverage insurance?

Question

Im about to buy a bike and I dont know whether or not full coverage is needed on a finance. I cant afford full coverage because the bike is a Yamaha R1 and the payments are high. Would taking a loan instead be beneficial in my case?

Thanks for any help.

Answer 1

Hate to be brutal but if you can't afford the insurance you shouldn't buy the bike. Most dealers wont let you drive off the lot without full insurance if you have financed it. Perhaps find a cheaper bike. Not what you want to hear but its the most sensible thing to do.

Answer 2

i'm not sure where you are?

in australia, full cover insurance is not compulsory.

however, if you are taking out a secured loan, then yes, the conditions of that loan will state you must have insurance - so if anything happens to the bike, the finance company will get their money back from the insurance company immediately.

if you get an unsecured or personal loan from a bank or other lender - security  by way of insurance is not required.  the only thing there is, the interest is normally higher.

Answer 3

most financial institutions will require full insurance on any vehicle. You will need to give them a copy of the policy number as well to prove its covered. if you you take a personal loan rather than finance then they dont care