Why collision insurance?

[Honclfibr]

I keep reading these threads where a rider crashes, and the bike is damaged enough to be totalled, but they're unsure of whether it's worth it to claim it under their collision insurance because of the increase in rates this would cause.

My question is, why have collision then? Why pay 2-3x as much for your insurance when you could carry only liability/ comprehensive and put the few hundred a month you save into a bank account in case you crash?

[benVFR]

Probably cause they have a loan which requires collision insurance...

Ben

[Honclfibr]

Ahh, I didn't realize you had to carry collision if you had a loan. Probably because I never have had a loan. I need to buy newer bikes

Makes sense though, I suppose they don't want you crashing your bike and then ditching the loan, leaving them with no collateral...

[sahd03]

ahhh. but if the loan is a home equity loan or a secured loan (i.e. they use something else other than the bike as collateral), then collision is not required. only if it's a bike or auto loan, where the collateral is the machine you are buying.