Motorcycle Insurance

WHAT YOU NEED TO KNOW ABOUT MOTORCYCLE INSURANCE
Although it is not frequently discussed, the fact remains that you need motorcycle insurance to protect you from the overwhelming loss that can occur in an accident. Well thought out coverage ensures no great loss of income or economic burden that could disable you financially after an accident. There are different kinds of coverage that pay for different kinds of loss. This is what confuses many riders when they buy motorcycle insurance. Not having the right kind of coverage can be devastating. It is like going into battle with holes in your armor.

Bodily Injury Liability Insurance
Bodily injury liability is another type of coverage that you are required by law to carry in most states. Legal minimum in many states is as little as $10,000 per person, per accident. Your coverage pays for injury to others when the accident is your fault.

If you are involved in a motorcycle accident and the other driver is at fault, then the other driver's property damage liability coverage pays for your motorcycle damage. Property damage liability insurance is required by law, but the legal minimum amount for this coverage in some states is only $5,000 per accident. So, if a driver with the $5,000 minimum totals out your $15,000 bike, his insurance company will pay you only $5,000. How will you get the other $10,000? If the other driver files for bankruptcy, you end up with nothing.

Underinsured Coverage
If you purchased underinsured property damage coverage, you may be able to collect the other $10,000 to fix your bike. This insurance is used to "fill the gap" between the actual amount of damages and what the other driver's insurance paid, but only if the other driver caused the accident and only if you purchased limits high enough to cover all of the remaining damage. In other words, if the legal minimum requirement in your state is $5,000 for property damage liability, and you drive a $15,000 bike, you should have at least $10,000 limits on you underinsured property damage.

Underinsured motorist coverage picks up where the other driver's insurance runs out. This type of insurance is very important. If you are injured in a motorcycle accident, break you leg, spend a week in the hospital and are off work for six months and experience a great deal of pain and suffering. You need coverage high enough to pay for your damages. The other driver only has a minimum policy of insurance (ie) $15,000. You will be left holding the bag. It is common that the injured persons medical expenses and wage losses are higher than the other persons insurance. Also nothing is left for pain and suffering or permanent disability.

Therefore, you need underinsured motorist coverage to pick up the difference. This type of coverage is strongly recommended because of its importance. It is suggested that you carry a minimum of 100/300 coverage (100 per person/300 per accident) this will also protect your passenger.

Uninsured motorist coverage is the most important insurance you can buy. In many metropolitan areas the other drivers are uninsured. These uninsured drivers can make up as high as 40% of the drivers on the road! As you know, the motorcycle driver is not at fault in most accidents. Therefore, you have a high probability of being hit and injured by a driver who has no insurance. The only way you can protect yourself is to purchase uninsured motorist coverage. Uninsured motorist coverage pays for medical expenses, property damage, and pain and suffering (however, there are limitations in no-fault states). We strongly recommend that you purchase this insurance and do not drive without it. Many riders mistakenly believe uninsured motorist coverage pays only for medical bills, and that they do not need it because they carry health insurance. WRONG!-- it pays for medical expenses, as well as loss of earnings, and pain and suffering.

It is a good idea to talk to your agent, or talk to several agents, to determine the best coverage that will provide the most protection against loss. You need to remember that different insurance companies have different exclusions to their insurance policies. The most common for motorcycle policies is the passenger exclusion, which means that your insurance company will not pay for injuries to, your passenger under your bodily injury liability coverage if you were at fault. There are other types of exclusions that, unless you ask, you may never know about until it is too late. Therefore, the most important thing you can do is to fully understand you entire coverage.

Collision Coverage
Collision coverage will pay for damages to your bike, less your deductible. This coverage applies without regard to fault. Even if the damage is your fault the coverage will apply. You also can use this coverage when you have been hit by another person and they are at fault.

Comprehensive coverage will pay for theft, fire and vandalism. This coverage is subject to a deductible.

The time to find out about coverage and exclusions on any policies is before you buy it. Before you sign anything, ask your insurance agent if there are any exclusions or notice requirements in the policy. Always ask to have all exclusions and notice requirements explained to you before ou buy any insurance.

RECOMMENDATION

The most important insurance for bike riders is uninsured and underinsured motorist coverage. This type of coverage is more important than liability insurance, because 2/3 of motorcycle accidents are caused by the other driver.

You need to protect yourself just in case your injury is more than minor, such as a broken leg or foot. Hospital bills, loss of wages, and pain/suffering together can easily be greater then the minimum liability coverage in All States. In that your losses are frequently much greater than the other persons coverage.

You should purchase Uninsured/Underinsured coverage of 100/300 limits. That means $100,000 per person, $300,000 per accident. The insurance carriers require you purchase liability insurance at the same level. This is not a problem because additional coverage is not a lot of money, usually $90 to $110 per year.