Motorcycle Insurance – A Necessary Investment
No one likes to spend money on insurance. It’s a monthly expense that can be quite significant, and further, it’s for a product that you hope you never need to use. But it is important to keep in mind that you may at some point need it, and when you do, you want it to protect you to the fullest. Below we discuss four important things to keep in mind when starting the dreaded task of motorcycle insurance shopping.
Number One – It’s The Law
As motorcycle injury lawyers, we consider some of the reasons listed below, perhaps even more important. We will start off by saying that carrying insurance on your motor vehicle is required by law. You will need to show proof of California’s minimum liability coverage (15,000 per person, 30,000 per accident) to register your motorcycle.
If you are pulled over (or worse, wreck) without insurance, you will likely have your bike impounded and be assessed fines. If you are injured in an accident that was not your fault, you will not be able to recover money for “non-economic” damages, which include pain and suffering, in the state of California.
Number Two – It is Worth it Not to Cheap Out
Liability insurance protects other people when you cause an accident. As stated above, California’s minimum bodily injury liability coverage is $15,000 per person, $30,000 total per accident. So if you injure more than one person, the total available is $30,000, and it will have to be split up among the injured parties. The minimum required insurance coverage for property damage in California is a minuscule $5,000 – which could be entirely consumed by a barely dented Lexus bumper. And if you have had the misfortune of seeing an emergency room bill lately, you will know that $15,000 could evaporate with one visit to the hospital, without even staying overnight.
If you have significant assets outside of your motorcycle, you will want to protect them by biting the premium bullet and paying higher limits. Otherwise, if you are determined to be underinsured, you could be paying for the remainder of the sedan you dinged, or a month-long hospital stay, out of your own bank accounts.
Another important reason to shell out for higher limits is discussed below in Number Four.
Number Three – Liability Coverage: Cheap / Collision Coverage: Not Cheap
Liability coverage for a motorcycle is often cheaper than that for a passenger vehicle. This is likely because a bike will do less damage to a larger vehicle and its occupants than a collision with another passenger car will.
However, paying for collision and comprehensive coverage is going to cost you more. Collision insurance will pay for repairs to your bike even if the damage was caused by your own fault. Comprehensive coverage pays when the motorcycle is damaged or destroyed by things such as flood or fire. It will also pay if your bike is stolen. A younger rider will pay more for collision coverage as many bike crashes involving young people are determined to be the rider’s fault, so the insurance companies price their risk accordingly. The cost of such coverage on a new, expensive sportbike could be outside of reasonable. You could save money on collision and comprehensive coverage by buying a used, older bike or one with a salvage title.
Number Four – Insure Yourself
Here is another reason it is important to pay for the higher liability limits discussed in Number Two. In California, you can only purchase uninsured/underinsured motorist (UM/UIM) coverage in an amount equal to or less than the limits of your liability coverage. In other words, you cannot insure yourself for more than you insure others. There are many uninsured motorists on the road, and if one hits you and you do not have UM/UIM, your medical care will be left to your own health insurance, along with all of its limitations and out-of-pocket deductibles. UM/UIM coverage for a motorcycle is also expensive, given the greater potential for severe injuries in a collision. But, again, it is worth it if you ever need it. If supplemental coverage known as Medical Payments is offered at a price you can afford, it is recommended that you pay for that as well.
Watch the YouTube video uploaded by a rider who used to sell insurance with his tips for buying motorcycle insurance.
Ride Safe and Insured!
Fair Oaks Motorcycle Accident Attorney
I’m Ed Smith, a Fair Oaks motorcycle accident attorney. Motorcycle collisions can cause terrible injuries. If you or someone you love sustained injuries caused by a negligent driver, my firm is happy to dispense compassionate, free, and friendly advice. I have been a motorcycle and car accident lawyer in the Fair Oaks, California area for nearly 40 years. Please look at our Yelp, Avvo, and Google reviews and then give us a call at (916) 921-6400 or (800) 404-5400.
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