GET A TUNE-UP BEFORE YOU RIDE!
By RALPH C. BUSS, Attorney for Motorcyclists
Spring has sprung and motorcycle riding season is upon us, but before you dust off the saddle and head out on the highway, be sure to give your insurance a Tune-Up to make sure you’re properly covered in case some “cager” isn’t used to looking out for motorcycles yet.
Nobody likes to think about insurance, or about having an accident and needing it. But, bike or car, you've got to be prepared with the right information, legal advice, and above all, the right insurance.
"But I've got full coverage," you might say. Well chances are that you don't, not unless you have HIGH LIMITS of uninsured/underinsured motorist, and the right kind and amounts of other important coverages!
In my law practice I’ve had many clients who thought they had “Full Coverage” insurance, but that doesn’t necessarily mean that you, your passenger(s), your property or that of the other party’s are always covered, or fully covered. If that sounds complicated, well so is insurance, and that’s why you should always read your policy and know what you’re covered for.
For example, you can tell your insurance agent that you want Full Coverage insurance, but the policy you wind up with may not include Uninsured/Underinsured Motorist coverage, arguably the most important coverage, because in Ohio they are not required to even offer it to you. Also, while you may believe that your bike is fully covered, you may discover some day to your misfortune that it was only insured for market value (“Blue Book”), or that your add-ons and custom accessories are not covered.
So go get your policy and let’s take a look at the various coverages that you need to be concerned with. If you have any questions, or want to change your policy after you read this, you should contact your agent or insurance provider.
Uninsured/Underinsured Motorist (UM/UIM): By far this is THE MOST IMPORTANT COVERAGE you need, bike, truck, or car. Buy the highest limits you can. This protects you, typically your passenger, and even relatives in your household for injuries in any UM/UIM wreck for medicals, pain and suffering, lost wages, and future losses. You still need a lawyer to wring the money out of your own company, but at least there will be something there to get at, if you have high limits. UM/UIM is used when it's someone else's fault, and they either have no insurance, or not enough insurance to cover your damages. Ohio only requires "12.5-25", the lowest in the country, which covers bodily injury up to $12,500 per person/$25,000 per accident; not enough in most bike accidents. For example, the average hospital stay for a serious leg fracture is around $50,000.
WHAT TO BUY: As much UM as you can. Not less than $100,000 per person, more if you can. It is not too expensive. One way to pay for more UM is to raise the deductibles (your "co-pay") in your collision and comprehensive policies.
Liability: Also known as "BI" (bodily injury). Your BI pays for someone else's injuries, not yours, only if an accident is your fault. Likewise the other guy's BI pays you if it's his fault. This is for all damages, present and future, including pain and suffering, except for property damage. Ohio only requires "12.5-25", or up to $12,500 coverage for each person's claim per accident, and only $25,000 for all claimants combined for each accident. That's very inadequate.
WHAT TO BUY: Get at least "50-100", preferably "100-300" or even more. If you hurt someone else on a bike, it is likely to be your passenger. You want that person to get a decent monetary recovery if there's a serious injury. And whoever is hurt, you don't want their lawyer to come after you personally and take your property, just because your BI insurance limits were too low.
Property Damage (P/D): Your PD pays for damage you do to someone else's property. Ohio requires a minimum of $7,500. Buying more doesn't hurt, since most new cars and bikes cost more than that these days. This does not cover your own bike. That's under either Collision, Comprehensive, or UM/PD.
Uninsured Motorist for Property Damage (UM/PD): It's a good buy, and usually fairly cheap, but if you already have collision coverage, it's probably not necessary. As the name implies, UM/PD covers damage to your bike if it's the other driver's fault and that driver has no insurance. UM/PD may also pay for your leathers and helmet damage, while collision ordinarily won't. Also, UM/PD typically has no deductible.
Medical Payments (MedPay): is personal injury protection, but may not provide a lot of protection because of the cost and the fact that most companies only offer small amounts (typically only up to $500 -1,000, though your carrier may offer higher limits). MedPay is a stopgap coverage that pays whatever your health insurer doesn’t (up to the purchased limit), which may be a lot.
Collision: Just covers your bike, minus a deductible, for damage from a crash of any sort, regardless of fault. Not required, except by finance companies to protect their loan if you finance a new or used vehicle. It's not cheap, but the higher your deductible, the cheaper the premiums.
Comprehensive: Also just covers the bike, but for other losses, such as fire and theft. Not required by law, but usually worthwhile to add. Again, most finance companies require “Comp/Collision” coverage. Higher deductibles also get you cheaper premiums.
Accessories: Most insurers will offer additional coverage for your accessories, but such insurance is not intended to cover chrome replacement parts or custom paint jobs, but will cover add-ons such as saddlebags, tool kits and even your helmet and leathers. Premiums are usually based on a percentage of the value you wish to insure your accessories for.
Premiums: Once you figure out what types of coverage you want for your bike or car, be sure to compare rates with other carriers. They can and do vary widely, and it pays to shop around. Call agents, including your own, and some independent brokers.
Ride Safe, Ride Protected!