Custom Parts and Equipment Coverage (CPE)
Custom parts and equipment coverage pays to repair or replace aftermarket add-ons you've fitted to your motorcycle or vehicle, such as exhausts, seats, paint, luggage and electronics, when they're damaged or stolen in a covered loss, up to a dollar limit you choose.
Actuarial & Contractual Mechanics
A standard motorcycle policy values your bike as the manufacturer built it. Anything you add afterward (a $1,200 slip-on exhaust, a $900 custom seat, $2,500 of paint, hard luggage, a GPS) is covered only through custom parts and equipment coverage. It works as a sub-limit that sits on top of your collision and comprehensive coverage. Many policies include a small amount automatically, and you can buy more. The Insurance Information Institute warns that standard policies often limit accessory coverage and advises checking your insurer's limits before you add upgrades. Losses are paid minus your deductible, and often at depreciated actual cash value unless your policy says otherwise. This coverage decides how much you actually get back in a theft claim. See does motorcycle insurance cover theft. It also matters in a total loss, as the financed motorcycle total-loss scenario shows.
Marcus's sport bike is worth $9,000 stock, and he's added $4,000 of parts: an exhaust, levers, a tail tidy and new bodywork. His policy includes $1,500 of CPE coverage and a $500 comprehensive deductible. When the bike is stolen, the insurer pays $9,000 + $1,500 − $500 = $10,000. Marcus loses $2,500 of upgrades he paid for. Raising his CPE limit to $4,000 would have added only a small amount to his annual premium.
Under-declared modifications are one of the most common reasons riders feel short-changed after a claim. If you don't raise your CPE limit to match your receipts, you're self-insuring the difference. And if you fail to disclose major modifications such as performance tuning or derestricting, some insurers may treat it as misrepresentation, which can put the whole claim at risk. Keep receipts and photos, and update your limit every time you add a part. Compare with how full coverage protects the rest of the bike in full coverage vs liability-only motorcycle insurance.
What Counts as Custom Parts and Equipment?
It typically includes aftermarket exhausts, seats, handlebars, levers, lighting, custom paint and graphics, chrome, fairings, saddlebags and luggage, sound systems, GPS units, sidecars and trailers, depending on the policy. Riding gear such as helmets and jackets is often a separate optional coverage. On ATVs, it covers winches, plows and racks. See quad bike & ATV insurance. On dirt bikes it covers suspension upgrades and graphics. See dirt bike insurance coverage.
How to Set the Right CPE Limit
Add up your receipts for every non-factory part, round up, and set your CPE limit at or above that total. Re-check it after every upgrade and at renewal. Store photos and receipts in the cloud, not on the bike. For how these choices move your premium, see average cost of motorcycle insurance, and for the full coverage menu, visit the motorcycle & powersport insurance hub.
Frequently Asked Questions About Custom Parts and Equipment Coverage (CPE)
Clear definitions, policy implications, and related coverage calculators.