In most Auto insurance policies the value of the motorcycle or scooter is determined by the model year, the number of miles on it, and it’s MSRP (Manufacturers Suggested Retail Price) or “Kelly Blue Book,” cost.
This method of price estimation is only effective for vehicles manufactured during the last 10-20 years of production. Those vehicles tend to be commuter or family vehicles and are typically not owned for more than 15 years, and the automobile industry diligently monitors the costs of current vehicles on the market. This is not true for classic motorcycles, scooters, or other vintage vehicles.
When it comes to vehicles produced before the 1970s, the real cost of replacement can easily exceed the bike’s MSRP ( original retail price) or its ‘actual replacement value’ as estimated by the insurance company. The factors that determine the real-world value of a vintage or collectible motorcycle or scooter include, but are not limited to Original Cost of the vehicle, costs for restoration, costs of customization, and rarity of the model.
When all of the above factors are taken into consideration, it’s very easy for a classic motorcycle or scooter to be worth much more than the actual value, or more than the normal benefit amount of a standard full coverage insurance policy.
In the real world, classic motorcycle or scooter owners want agreed-upon value worked into their policy because it is the only way to positively guarantee that if something terrible happens to your baby, you receive insurance benefits that reflect the current real value of that vehicle.