Not All Motorcycle Insurance Will Protect You, Your Family or Your Bike!

Written by: Kenneth Hardison

Not all Motorcycle policies are the same. Just having Motorcycle Insurance doesn’t mean you or your family or even your bike are adequately protected.

It’s important that you understand YOUR policy and know what it covers and what it doesn’t!  A careful examination of your policy may surprise you.

Unfortunately, insurance policies can be complicated and hard to understand, with lots of fine print and exclusions.  It’s easy to assume you have more coverage than you actually do. And many people unknowingly fail to adequately protect themselves – especially if they have opted for the most basic coverage available, such as a minimum limits liability policy.

 

INSURANCE COMPANIES AREN’T YOUR FRIEND–  Insurance companies are in the business of making money – and that includes your own insurance company. Insurance policies are often written in ambiguous terms and contain numerous exclusions and clauses that can significantly alter the actual coverage contained in the policy.

Many people do not fully understand the insurance coverage they are paying for. Unfortunately, many people think they have far more protections and coverage within their policy than they actually have — and don’t find out until it’s too late!

After an accident occurs is NOT the time to learn about what your policy covers and does not cover.  It’s important to know, up front, what kind of insurance coverage you have, so that you can make the intelligent choice to change your coverage or add additional protections BEFORE you need them!

Free Insurance Policy Review

We have been handling Biker injury cases for years and are very familiar with motorcycle insurance policies. We also aren’t trying to sell you insurance – we have no skin in that game.

But, we can look at your policy and honestly tell you what kind of coverage you have, and to what extent it will protect you or your loved ones in an accident.

Let us look at YOUR policy FOR FREE – and give you an honest appraisal of what kind of coverage you have and help you determine what other kinds of coverage you need.  Just give us a call and schedule an appointment today. Don’t wait!

 

Need to Know Motorcycle Coverage Options

To better understand Motorcycle Insurance policies, let’s look at the various types of coverage offered by most insurance companies.

Liability insurance: Liability coverage pays for bodily injury and property damage for which any individual covered by the insurance policy is held legally responsible.  So, if you or anyone else named in the policy, or someone you have given permission to use the bike, is involved in an accident and cause injury, or damage to someone else – this kind of insurance kicks in to pay the other person for their damage up to the amounts specified in the policy.

There are 3 different types of Liability insurance: Bodily Injury Liability, Property Damage Liability, and Supplementary Payments.

Bodily Injury Liability: This coverage pays for injuries and or damages suffered by others as a result of an accident for which you, or someone covered by your policy, is held liable. Damages may include medical expenses, lost wages, disability, pain and suffering, as well as lawsuit settlement and legal expenses if necessary.

Property Damage Liability: This coverage pays for damages to property belonging to others involved in an accident for which you, or another driver covered by your policy, is held responsible. These damages may include auto repairs, the actual cash value (ACV) of the other individual’s vehicle or property and legal expenses.

Supplementary Payments: This coverage provides payments for accident-related expenses such as bail bonds, loss of earnings due to court attendance, hearing or trials requested by your or another insurance provider, emergency first aid and other expenses incurred at the request of the insurance company or companies involved.

In many states’ liability insurance is the only type of motorcycle insurance that the state requires you to purchase. Unfortunately, that means many Bikers assume this is the only type of insurance they need, but this assumption often leads to a harsh reality check.  To be clear:

If liability insurance is all your policy covers,

then it will NOT cover YOUR injuries or damages

if you are in an accident!

With liability coverage alone, you will be paying insurance premiums, but if you are in an accident, you will still have to pay for ALL damages and repairs to your motorcycle, as well as any medical bills or other expenses you incur as a result of your accident.

Additional Types of Insurance Coverage that you can purchase include:

Collision Insurance: Collision coverage pays for damage to your covered motorcycle as a result of an impact with another vehicle or object. It typically pays for the lesser of the cost of repair or the actual cash value (ACV) of your covered motorcycle.  If your bike is financed, the lender typically requires that you carry collision insurance until your loan is payed off.

Comprehensive Insurance: Comprehensive coverage pays for the cost of repair or the actual cash value (ACV) of your covered motorcycle, minus the amount of your deductible. Comprehensive coverage is just that – comprehensive. While Collision Insurance only covers your bike if it is involved in an accident, Comprehensive covers damage other than collision or impact with another vehicle or object, and  may include damage caused by:

* fallen objects

* fire

* theft or larceny

* explosions

* earthquakes

* windstorms, hail and water damage

* impact or contact with an animal, such as a deer or bird

* glass damage or breakage

 

Custom Parts:  If you have a custom bike, with customized parts, pay careful attention to the particular kind of collision or comprehensive coverage that you have.  Although Collison or comprehensive coverage may pay for a part of your damaged custom parts, you may need to purchase additional coverage if you have additional non-stock options.

Uninsured/Underinsured Motorists Coverage (UM/UIM):  These types of coverage are usually not required but can prove to be VERY IMPORTANT if you are involved in an accident!

Uninsured Motorist’s Coverage ( UM): This coverage protects you when you, or anyone covered under your policy, (like a family member, or someone riding with you) is injured in an accident and the person who caused the accident doesn’t have any  insurance.

Remember, just because the law requires people to carry basic liability insurance, doesn’t mean that they actually have valid insurance at the time of an accident. Far too many Bikers are injured on the highway by someone who didn’t have insurance.  UM is designed to protect you if the person that causes your accident doesn’t have valid liability insurance and kicks in to cover your expenses up to the amount of coverage you have purchased.

Underinsured Motorist’s Coverage ( UIM): This coverage is designed to protect you if the person that hits you and causes the accident has liability insurance, but the amount is too low to cover losses sustained by those injured in the motor vehicle accident. This type of coverage pays a maximum of the difference between the underinsured driver’s liability limits and your UIM coverage limits.  For UIM to kick in, the other motorist must be found legally liable for the accident. UIM does not cover property damages.

UIM coverage can make all the difference in the world if you, or a covered loved one, is seriously injured in a motorcycle accident and the negligent driver that caused your accident was only carrying the bare bones minimum of liability insurance. Scary fact:

Many States only require $30,000 of liability coverage. If someone hits you with THAT coverage, then that’s ALL there is to collect from their policy. Yes, even if you have $100,000 in medical bills as a result of injuries you suffered!

Umbrella Insurance Coverage: this is coverage that is designed to act as an “umbrella” of protection for YOU and your assets. So, if you cause an accident, and the resulting damages are enough that your insurance coverage isn’t enough then this kicks in.  For example, let’s say you have a minimum limit $30,000 Liability insurance policy that covers you and your motorcycle, and you have personal assets worth $100,000.  If you or someone covered by your motorcycle policy causes an accident, the other person can go after your assets if their expenses (auto repairs, medical bills, etc.) exceed $30,000. So, unless you have an umbrella policy that insures you for liability damages, they can hire an attorney and come after your property.

Will Your Motorcycle Insurance Policy Cover You?

Most people learn too late that their policy will not cover their injuries and damages after a serious motorcycle accident. Motorcycle Injury lawyers are on the front line, defending bikers and demanding compensation from insurance companies. In far too many cases they see insurance agents selling inadequate insurance coverage that won’t pay for medical bills and loss of income.

Don’t let this happen to you!

We are committed to representing bikers’ rights. Click here to find an experienced lawyer in your local market that will review your policy FOR FREE and give you a no-nonsense assessment of the coverage you have — and help you determine what additional kinds of coverage you need.  Make sure your family, bike, and finances are protected.

 

Ken Hardison
Ken practiced injury law for over 27 years and built one of the largest Personal Injury Law Firms in the state of North Carolina.