Motorcycle Insurance Coverage Recommendations
Are you looking at getting motorcycle insurance and you wanted a little advice from an injury attorney about what is the best type of motorcycle insurance, keep reading below.
As a Chicago motorcycle accident lawyer, I’ve worked on a lot of motorcycle cases. So I’m trying to share some information about things that motorcycle riders should, and shouldn’t do a before and after an accident.
In this blog I want to talk about motorcycle insurance coverage. It’s not sexy, but it’s super important.
Whenever I get a call from somebody who was just in an accident, they almost always say they have ‘full coverage.’ Almost inevitably they end up not having full coverage.
There’s a misconception about what full coverage motorcycle insurance means.
Almost every state has mandatory insurance limits. In Illinois, riders have to have $25,000 in insurance.
Six Types of Motorcycle Insurance You Should Have
There are six types of motorcycle insurance that I think that every motorcycle rider should have.
The first type of insurance is liability insurance. But liability insurance is just the tip of the iceberg. That is the type of insurance we are required to have.
If you cause damage to somebody else while riding on your motorcycle, chances are the other party may have some property damage, but they’re not going to get hurt. You’re the one that’s going to get hurt.
So, it’s critical to have these next types of insurance.
Uninsured & Underinsured Motorist Coverage
So, the second type of insurance you should have is uninsured and underinsured motorist coverage – sometimes called UM or UIM. This is actually the single most important type of insurance a motorcycle rider can have.
There’s a huge number of people driving on our streets that are uninsured altogether. And a lot of the rest of the people have the minimum insurance limits. If you get hit by a car that has $25,000 insurance, that might not even cover the medical bills of someone hit while riding a motorcycle.
So, how do you recover for your pain and suffering, lost wages and more? This is why it’s critical to have UM and UIM.
A lot of insurance companies don’t push this because insurance has become a commodity and they try to sell you the cheapest package to keep you from going from Geico to another insurance company.
Don’t fall for it. UM and UIM are critical. We recommend that you have at least $100,000 in coverage (more if you can afford it).
Collision & Comprehensive Coverage
The third type of motorcycle insurance every rider should have is collision and comprehensive coverage.
I can’t tell you how many times I’ve gotten a call from somebody who said that they were involved in an accident. And they went to their own insurance company to get the property damage fixed, and they didn’t have collision coverage. That’s why collision coverage is so important. And it’s not that expensive.
Comprehensive coverage covers you if you’re not involved in an accident with another vehicle. Say for example a tree falls and hit your bike.
Medical Payment Coverage or PIP Coverage
The fourth type of insurance you should add is something that I’ve seen a lot of videos and they tell you it’s not important. It’s called med pay medical payment coverage. In some states it’s called PIP or personal injury protection coverage.
The idea behind med pay is that the first $2,500 or $5,000 or $10,000 of your medical expenses are covered by your insurance – no questions asked.
A lot of people think if they have insurance health insurance, they don’t need it. Well, you’re still going to have co-pays and those can be expensive, especially if you’re going to physical therapy. You may have to pay $20 or $40 every time you got to go.
Insurance coverage type number five is rental insurance. If your bike goes down, what are you going to ride while the bike is being repaired?
Check your policy to see if you have this type of coverage. And if not, see if you can add it.
The sixth type of insurance you’re going to want to have in your insurance policy is GAP insurance. It stands for guaranteed asset protection.
Sometimes you get this from State Farm or Allstate, but oftentimes you can get it at the dealership when you buy your bike.
Here’s the thing about GAP coverage. If you buy a $30,000 Harley, the second you take it off the showroom floor it loses value. Let’s say six months later you’re driving the bike, get in an accident the bike is totaled. The insurance appraiser says the ‘actual cash value’ of the bike is $22,000.
That leaves an $8,000 balance that you owe the finance company. Who is going to pay that if you don’t have gap insurance coverage? You are. GAP insurance is really inexpensive. So, consider getting it if you haven’t already.
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