The necessary insurance coverage for motorcyclists varies from state to state; while it is necessary for legal purposes to carry insurance it is also essential. Motorcycle crashes can result in serious harm and having enough insurance for the bike is important. Even though the each state requires a minimum insurance coverage level it is better to have enough coverage, along with uninsured and underinsured coverage added to the policy.
The severity of harm that can occur during a bike crash is often above the limit of coverage an underinsured driver has and with uninsured drivers without the extra coverage in the motorcycle insurance policy for these drivers it could be financially devastating for the person hurt and their family.
Having adequate insurance coverage when it would be difficult or impossible to recover compensation for injuries, lost wages, damages to the bike and other expenses is crucial. In order to choose the right insurance for riding motorcycles it is important to understand the different elements of coverage. We at Ehline Law Firm PC have put together information about insurance terms commonly used to provide a clear understanding of what each means.
Liability insurance coverage is a type of policy that protects anyone you may injure and property damages in a motor vehicle collision. The insurance coverage is to protect you as a driver and is generally the type of policy that is required by states. This is a type of policy that has various levels of protection in case of an accident where bodily harm and property damage occurs, but state requirements to satisfy the laws are generally a low amount and an accident with serious injury can be much higher than the insurance policy covers when going with the basic coverage for bodily injury liability and property damage liability.
Collision Coverage Policies
Collision coverage is an optional type of insurance coverage in a policy that according to the National Association of Insurance Commissioners 72 percent of drivers has this additional policy. This additional insurance coverage will pay for motorcycle damages when there is a collision with stationary object, such as a wall or median. It should be made clear this kind of insurance covers the motorcycle in the event an accident takes place involving even hitting a pothole resulting in a mishap. The insurance will not cover the object that was hit, but within your regular policy the property damage liability coverage will apply.
This type of insurance coverage will pay for the motorcycle when it is damaged, stolen or in the event of a collision. The damage can be due to causes other than an accident, such as hail, vandalism, theft, broken glass on the bike, floods, earthquakes, collisions with animals and other mishaps. It is generally referred to by policy holders as full coverage insurance. The damage or theft of the bike will be valued by the insurance company at the time of the incident and the data from the National Association of Insurance Commissioners shows approximately 77 percent of drivers carry comprehensive insurance or full coverage.
Uninsured and Underinsured Motorists Policies
One of the most important additions to a motor vehicle insurance policy is for underinsured and uninsured drivers. This is protection that can provide relief if a collision occurs with a driver that either does not carry enough insurance or none at all. It can also be protection for the person injured or has property damage in the event of a hit and run crash. Without having this type of addition to an insurance policy when a driver is underinsured, uninsured or in a hit and run it will mean there is no way to recover an insurance company settlement for the damages.
Personal Injury in Insurance Policies
Personal injury protection in insurance policies is referred to as PIP, and is usually sold in states that are non-at-fault states. This is included in the policy to compensate up to a specific amount of money for medical costs when the driver is at-fault in a motor vehicle collision. This money may also be used to compensate for other issues related to the crash such as rehabilitation, therapy, loss of wages, necessary daily care services, babysitting and other personal monetary problems because of the mishap. One of the other things this could be used as compensation for is funeral expenses.
Medical Payment Insurance Coverage
This is coverage that is called Med Pay and is sold in states that go by traditional tort insurance laws. The coverage is for injuries caused to the motorcyclist or passenger and includes hospital bills, physician expenses and funeral costs. This type of coverage in a state using tort insurance laws does not matter what driver was at-fault and will pay up to the limit of the policy. In some states Med Pay may be optional and the injured motorcycle rider or passenger may choose to depend on their own health insurance coverage for medical care costs. The amount of coverage included in the policy will be up to the driver to choose what they feel is affordable.
Property Damage Liability Coverage
Property damage liability insurance coverage is a part of the policy that will cover payment to the limit of the policy for damages to another person’s property. The coverage can be paid out for damages to motor vehicles, utility poles, buildings, garages and other damage done to physical property.