A survey of 1,000 motorcycle owners has determined that manydon't understand important policy information, an insurer reportedtoday.

That finding came from Mayfield Village, Ohio-based ProgressiveGroup of Insurance Companies, which describes itself as the largestmotorcycle insurer in the country.

The bikers' lack of knowledge can cost them thousands if theyhave a claim, Progressive noted.

In its survey the company focused on two key facets of amotorcycle insurance policy: physical damage coverages and losssettlement types.

Progressive said with many owners interested in individualizingtheir machines, it was surprising to find that more than half--56percent--of all those surveyed don't know how much protection fortheir bike's custom parts and accessories comes with their physicaldamage coverage.

Of 44 percent surveyed with more than $3,000 worth of customparts and accessories on their motorcycles, 51 percent didn'tpurchase additional coverage.

The physical damage portion of a motorcycle policy generallyincludes comprehensive and collision and custom parts andaccessories coverages. Most motorcycle policies with comprehensiveand collision include some custom parts and accessories coveragefree with the option to purchase more, Progressive noted.

The insurer added that comprehensive, collision and custom partsand accessories are optional coverages and are subject to adeductible amount.

Progressive's survey also found that more than 45 percent ofmotorcyclists surveyed didn't know which loss settlementtype--actual cash value, agreed value or stated amount--theirpolicy provides, and 68 percent of those confuse the benefits ofagreed value and stated Amount settlement types.

The company said many policyholders mistakenly believe thatstated amount guarantees a preselected total loss settlement amountin writing in the event a bike is declared a total loss or isstolen and not recovered.

Insurance companies generally do not offer all three losssettlement types--instead, the loss settlement type available topolicyholders is based on the type of motorcycle they own,Progressive said.

According to the insurer, if a policyholder owns a mass-producedmotorcycle that has a resale value generated by a third party likethe N.A.D.A. appraisal guides or Kelley Blue Book, they willgenerally be offered an actual cash value (ACV) settlement option.This means that, in the event of a total loss or if their bike isstolen and not recovered, they will generally be paid the ACV, lesstheir deductible amount.

Progressive pointed out that if a customer owns a custom orclassic motorcycle with certain characteristics, they might findthat some companies won't insure their bike. But, it said, manyinsurers that specialize in motorcycles will insure these types ofbikes and will generally offer one of two loss settlement types:agreed value or stated amount.