You need to pay heed to what Ray has told you above. W/a new bike, you need full coverage - plain & simple.

 

The dealer sell you the bike and making a mark up/commission on it. The finance dept. may or may not be in house is separate department. Selling agent really don't care...now depending how much your loan is? But I doubt it is a significant amount borrowed that justify a court order for you to buy full coverage. Therefore, as long as you have insurance, even though just liability, it's good enough. You only risk that fact that bike can be stolen or crashed and you are left with a loan but no bike. Full coverage cost is ridiculous...especially if you are young. If you can afford full coverage, why not just store the bike in your living room and not buy any insurance, but use this amount to pay towards the bike.

In your scenario, it's tricky because you already put yourself in a hole without a rope to pull yourself out.

Try to get rid of the bike first. If you are unable to return the bike, and cannot afford full coverage, then bite the bullet and just buy liability for now. Take extra caution when riding, parking, storage...lock it up. Just be extra careful because you have no full coverage. Now use what ever money you saved from not buying full coverage to pay extra monthly towards the bike. This way you pay off your loan faster...I'm pretty sure if you can pay like $200 extra on top of your minimum payment, you'll pay off bike 1-2 years faster.

BTW: make sure you get the lowest APR on the loan too...you can refi

 

What state do you live in? There are several insurance carriers that deal specifically with motorcycles. But they tend to be regional. Here on the east coast, we have Riders Insurance, my carrier. Full coverage on Yolie is $520 / year. On Ororo, my old F4i it was $220 a year. And no, my lowside didn't up my rate. I tripled my coverage.

Despite the name, I've heard Pirate Insurance Services LLC is pretty good on the west coast (I think). The final option, one that will prolly kill you, is not to ride it. If the bike is not being ridden, is in storage, you might not be required to have insurance at all.

 

What everyone said before is true. I've passed up a bunch of deals on good cars in the past because of needing to have full coverage for them.

When you go look at a bike (or car for that matter), always get the VIN and shop around for insurance quotes beforehand. Tough lesson to learn but I guarantee you won't do it again .