If you own a motorcycle or ever ride on someone else’s motorcycle it is extremely important to purchase the proper insurance coverage before going on a ride. All too often, bikers believe they have “full coverage” for their motorcycle, only to learn later that that they could have had better coverage and been fully protected after a tragic accident. Since injuries from motorcycle accidents can be catastrophic or even fatal it is necessary to review your insurance policy and make sure you properly comprehend the coverage you are receiving.
Liability Coverage
Liability insurance covers the injuries and damages you may cause to another while in an accident that is your fault. Utah Law requires everyone to have this coverage with a minimum limit of $25,000 per person and $65,000 per accident. Meaning, one person’s claim cannot exceed more than $25,000 and if two or more people are injured in the same vehicle, their combined claims cannot exceed $65,000.
Collision Coverage
Collision Coverage Insurance covers any property damage inflicted on your vehicle from a collision. However, this type of coverage will cover damage done to another’s vehicle involved in an accident that was your fault. Deductibles are offered on collision coverage to help lower the cost of your overall premium. Typical deductibles are $250, $500, or $1,000.
Comprehensive Coverage
Comprehension Coverage Insurance covers damages to your vehicle caused by something other than a collision. Comprehensive Insurance can cover damages caused by falling objects, like a tree that falls during a windstorm and crushes your motorcycle.
OPTIONAL INSURANCE COVERAGE*
* Although this coverage is “optional,” it should be considered as mandatory for every motorcycle owner in Utah! No biker in Utah should take their bike for a ride without having this coverage in place.
Personal Injury Protection (PIP) or Medical Payment Coverage (Med Pay)
Personal Injury Protection (PIP) and No Fault Insurance are the same type of insurance coverage. Under Utah state law, you are required to purchase insurance that will cover your medical bills and lost wages should be involved in a traffic accident. These benefits are available to you whether or not you are at fault for the accident. This law allows you to receive immediate medical attention after your accident without having to wait for the at-fault driver’s insurance company to accept liability. The law requires you to have at least $3,000 in PIP Coverage but you may purchase additional coverage of $5,000, $10,000 or even $100,000. If you are not responsible for the accident, the at-fault driver’s insurance company will reimburse your insurance company for any PIP expenses they paid and you will not face increased premiums.
Although $3,000 in PIP Coverage is required for every car insurance policy in Utah, it is not required (and often not even available) for motorcycles in Utah. Instead motorcycle policies often have medical coverage limits available called Med Payment Coverage. When it comes to motorcycle coverage it is important to understand the medical limits you are purchasing. Since PIP does not apply to motorcycles, people can choose to reject medical payment coverage or purchase it at limits of $1000, $2500, $5000, or $10,000.
I have seen cases where people lay down the bike, injure themselves and find out they only had $1000 medical coverage. This is common because the default amount with most companies is $1000. The key is to be aware of your options and discuss them with your insurance agent. This coverage is available for medical treatment for injuries sustained on a motorcycle no matter who is at fault. Although optional, I strongly recommend that you have at least $5,000 in Medical Payment Coverage. If you have no other health insurance, you could be responsible for large medical expenses if you do not have this coverage.
Uninsured Motorist Coverage (UM)
Uninsured Motorist Coverage (UM) is just as important as liability coverage. It pays for your medical expenses and other damages incurred from an accident where the at-fault driver does not have car insurance. We highly recommend you consider purchasing UM coverage, as it financially protects you and your family from the negligence of other drivers. If you are hit by someone who illegally fails to have insurance on their vehicle, are involved in a hit-and-run accident, or are caused to lay down your bike because of the reckless and inattentive driving of a vehicle that ultimately left the scene of your accident, you will only be compensated for your injuries and damages if you have adequate Uninsured Motorist Coverage.
Once your insurance company compensates you for your damages your insurance company then can pursue the irresponsible driver for reimbursement. At a minimum, you should consider purchasing $100,000/$300,000 uninsured motorist coverage. The cost of purchasing this larger amount of coverage is relatively inexpensive and is essential to have because it protects you from uninsured drivers. If you sustain serious injuries as a result of an uninsured driver, you want the most coverage available to compensate you for pain and suffering and other economic damages like lost wages.
Case Study: A motorcyclist recently contacted me whom was seriously injured while crossing through an intersection on a green traffic signal, when a car traveling the opposite direction failed to the yield the right-of-way and made a left-hand turn in front of him. The biker sustained serious injuries and incurred more than $10,000 in medical bills. However, the driver of the car that caused the accident did not have car insurance. The biker was then able to make a claim for his full injuries and damages under the Uninsured Motorist coverage of his personal motorcycle insurance policy, but sadly, he declined this coverage when he purchased his motorcycle insurance policy. So the biker ended up paying more than $10,000 for medical bills and other expenses that were the direct result of someone else’s negligence.
Note: If you have UM coverage on one of your car insurance policies, but not on your motorcycle policy you cannot make a UM claim. The coverage has to be specifically purchased for the vehicle you are operating at the time of the accident.
Underinsured Motorist Coverage (UIM)
Uninsured Motorist Coverage is insurance coverage available under your personal motorcycle insurance policy. It applies when you are in an accident and the at-fault driver’s insurance policy limits have been exhausted, but are insufficient to fully compensate you for all injuries and damages sustained. This insurance is available when a motorcyclist is involved in an accident with an insured car, truck or bike, but the insurance coverage is minimal or simply does not reflect the value of the damages sustained by the motorcyclist.
This coverage is essential to have because it protects you from drivers with the minimum Utah insurance coverage of $25,000. I recommend that you purchase the maximum UIM coverage available!
Case Study: Jack runs a red light and T-bones Jane while on her motorcycle. Jane is injured and undergoes neck fusion surgery. Jane’s medical bills total $45,000. Jack’s policy limits are $25,000. Jane gets Jack’s $25,000 and then makes a claim for her Underinsured policy for the remaining damages including pain and suffering, lost wages and the remaining $20,000 in medical bills. If Jane did not have UIM coverage on her motorcycle she would only recover the $25,000 from the at-fault driver’s insurance company and would be left paying out of pocket for the remaining medical bills and damages, even though she did nothing wrong.
Note: I strongly urge every motorcyclist to have at least $100,000 in Uninsured (UM) and Underinsured Motorist (UIM) Coverage before getting on a bike, and if they can afford higher coverage, they should purchase $250,000 in coverage. The increased coverage to $250,000 would cost less than an additional $8 a month!