Ohio Bodily Injury & Property Damage Limits:
Bodily injury limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for bodily injury or death caused by an insured person in an auto accident.
Property damage limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for damage in an auto accident to the property of other people (e.g. light poles, fences, another vehicle, etc.)
In Ohio a driver must have a minimum coverage of 15,000 for bodily injury to one person, $30,000 for bodily injury sustained by two or more persons in a single accident, and $10,000 for property damage that results from one accident. To adequately protect yourself, you may want to purchase much more than the minimum amount of coverage required for Ohio.
Common Exclusions: Bodily injury and property damage coverages apply to injury and damage from normal use of the insured vehicle. Coverages are limited by your policy and there may be some circumstances in which coverage does not apply. For example, in some policies coverage does not apply to:
1. Bodily injury or property damage arising out of the use of your vehicle while transporting people or property for a fee.
2. Injury or damage caused by an intentional act.
3. Injury or damage as a result of operating a vehicle owned by a person covered by your policy, where the vehicle is not listed on your policy.
4. Injury or death of you or a family member.
5. Property owned by, rented by or in the control of an insured person.
Thursday, July 9, 2009
Ohio Auto Insurance: Department of Insurance - Looking Out for You
* Auto
* Health
* Home
* Life
* Long-term care
* Worker`s compensation
The principal responsibility of CDI is to protect Ohio consumers. CDI does this by:
* Licensing insurers and insurance companies to do business in Ohio
* Regulating insurance contracts and rates
* Protecting against insurance fraud
* Ensuring that insurance companies comply with Ohio law
* Ensuring that insurance companies abide by their own policy language
* Processing Ohio insurance consumer complaints
* Monitoring and reporting annual insurance complaint rates
* Providing Ohio residents with comprehensive insurance guides
Licensing Insurers
The ODI manages the licensing process for all insurance companies, agents, adjusters, and groups in the state. Licensing procedures ensure not only that insurance companies are financially secure but also that individual agents are well-versed in Ohio state insurance laws through pre-licensure and continuing education coursework. The ODI also reviews all insurance products to verify that they comply with the Ohio Insurance Code`s rules regarding insurance contracts and rates.
Through CDI, consumers can verify:
* Whether an insurance company is licensed in Ohio
* Whether an insurance company is licensed to sell a specific line of insurance
* Whether an agent is licensed in Ohio and a legitimate representative of the insurance company Whether an insurance company has a good record of handling policy complaints
Protecting Consumers
Beyond licensing, the ODI works on a number of fronts to protect Ohio insurance consumer interests. The agency actively seeks to help consumers resolve their insurance-related disputes by reviewing and investigating consumer complaints. The Ohio Department of Insurance also seeks to limit disputes by providing shopping guides to help consumers better determine their insurance needs. A complete list of these guides, including the Ohio Shopper`s Guide to Automobile Insurance, can be found on the ODI website.
In addition to managing consumer complaints, the ODI polices all other insurance activities in Ohio. The ODI Director works diligently to protect consumers by prosecuting insurance fraud scams, revoking the insurance licenses of those who violate the Ohio Insurance Code, and issuing cease & desist orders to stop sales of unlicensed insurance products. The Director also publishes regulations to ensure the proper implementation of the Ohio Insurance Code
* Health
* Home
* Life
* Long-term care
* Worker`s compensation
The principal responsibility of CDI is to protect Ohio consumers. CDI does this by:
* Licensing insurers and insurance companies to do business in Ohio
* Regulating insurance contracts and rates
* Protecting against insurance fraud
* Ensuring that insurance companies comply with Ohio law
* Ensuring that insurance companies abide by their own policy language
* Processing Ohio insurance consumer complaints
* Monitoring and reporting annual insurance complaint rates
* Providing Ohio residents with comprehensive insurance guides
Licensing Insurers
The ODI manages the licensing process for all insurance companies, agents, adjusters, and groups in the state. Licensing procedures ensure not only that insurance companies are financially secure but also that individual agents are well-versed in Ohio state insurance laws through pre-licensure and continuing education coursework. The ODI also reviews all insurance products to verify that they comply with the Ohio Insurance Code`s rules regarding insurance contracts and rates.
Through CDI, consumers can verify:
* Whether an insurance company is licensed in Ohio
* Whether an insurance company is licensed to sell a specific line of insurance
* Whether an agent is licensed in Ohio and a legitimate representative of the insurance company Whether an insurance company has a good record of handling policy complaints
Protecting Consumers
Beyond licensing, the ODI works on a number of fronts to protect Ohio insurance consumer interests. The agency actively seeks to help consumers resolve their insurance-related disputes by reviewing and investigating consumer complaints. The Ohio Department of Insurance also seeks to limit disputes by providing shopping guides to help consumers better determine their insurance needs. A complete list of these guides, including the Ohio Shopper`s Guide to Automobile Insurance, can be found on the ODI website.
In addition to managing consumer complaints, the ODI polices all other insurance activities in Ohio. The ODI Director works diligently to protect consumers by prosecuting insurance fraud scams, revoking the insurance licenses of those who violate the Ohio Insurance Code, and issuing cease & desist orders to stop sales of unlicensed insurance products. The Director also publishes regulations to ensure the proper implementation of the Ohio Insurance Code
No-Fault Auto Insurance
Personal Injury Protection (PIP) coverage is required
The coverage that is purchased in a no-fault state is called Personal Injury Protection, or PIP. The amount and type of PIP coverage varies considerably by state. In general, a policyholder in a no-fault state would be reimbursed for medical expenses, loss of wages and other injury-related expenses, and they are usually not allowed to sue for additional money from the person who caused the incident. Other insured drivers who are injured while in your car may be covered by their own policy or by your policy, depending on state laws.
Twenty-four states, including the District of Columbia, have laws that allow policyholders to obtain payment for auto accidents from their own insurers. Of these, the 12 states listed below are considered true "no-fault states" because the insurance laws limit when policyholders may sue the person who caused the accident. The guidelines for suing are either based on a "monetary threshold" which means that the expenses exceed a certain dollar amount or a "verbal threshold" which permits a lawsuit when the injuries result in death, permanent disability or disfigurement. Additionally, some states allow drivers to seek payment for "non-economic losses" such as pain and suffering. States that are considered true no-fault states include Hawaii, Florida, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Buying Liability coverage is also an option.
While no-fault insurance limits the right of an injured driver to sue, at-fault drivers may be responsible for expenses over the limit of the injured person's Personal Injury Protection coverage. For example, in Minnesota, drivers are required to purchase bodily injury and property damage liability coverage to cover the costs that exceed the amount of PIP coverage an injured may have.
In New Jersey and Pennsylvania, drivers may choose to purchase Personal Injury Protection coverage or Bodily Injury Liability coverage, which pays for injuries based on who is at fault for the accident. In Kentucky, when drivers buy PIP coverage, they may also "buy back" the right to sue another driver, by paying more for bodily injury liability coverage. With the increase in the number of uninsured drivers on the road, especially in urban areas, buying Personal Injury Protection often provides a better value because you have the assurance that you will have coverage for your own expenses.
Damage to personal property is not covered by PIP coverage
No-fault laws only apply to personal injury. Damage to your car or to other personal property is not covered by no-fault insurance, so it's important to protect the value of your car by purchasing Comprehensive and Collision coverage. And, purchasing property damage liability coverage will pay for damage you cause to someone else's property in an auto accident, if you are held responsible for the repairs.
Mandatory coverages vary by state. Your agent or insurance company representative will explain how each coverage works and the choices you have for protecting yourself and your family.
The coverage that is purchased in a no-fault state is called Personal Injury Protection, or PIP. The amount and type of PIP coverage varies considerably by state. In general, a policyholder in a no-fault state would be reimbursed for medical expenses, loss of wages and other injury-related expenses, and they are usually not allowed to sue for additional money from the person who caused the incident. Other insured drivers who are injured while in your car may be covered by their own policy or by your policy, depending on state laws.
Twenty-four states, including the District of Columbia, have laws that allow policyholders to obtain payment for auto accidents from their own insurers. Of these, the 12 states listed below are considered true "no-fault states" because the insurance laws limit when policyholders may sue the person who caused the accident. The guidelines for suing are either based on a "monetary threshold" which means that the expenses exceed a certain dollar amount or a "verbal threshold" which permits a lawsuit when the injuries result in death, permanent disability or disfigurement. Additionally, some states allow drivers to seek payment for "non-economic losses" such as pain and suffering. States that are considered true no-fault states include Hawaii, Florida, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Buying Liability coverage is also an option.
While no-fault insurance limits the right of an injured driver to sue, at-fault drivers may be responsible for expenses over the limit of the injured person's Personal Injury Protection coverage. For example, in Minnesota, drivers are required to purchase bodily injury and property damage liability coverage to cover the costs that exceed the amount of PIP coverage an injured may have.
In New Jersey and Pennsylvania, drivers may choose to purchase Personal Injury Protection coverage or Bodily Injury Liability coverage, which pays for injuries based on who is at fault for the accident. In Kentucky, when drivers buy PIP coverage, they may also "buy back" the right to sue another driver, by paying more for bodily injury liability coverage. With the increase in the number of uninsured drivers on the road, especially in urban areas, buying Personal Injury Protection often provides a better value because you have the assurance that you will have coverage for your own expenses.
Damage to personal property is not covered by PIP coverage
No-fault laws only apply to personal injury. Damage to your car or to other personal property is not covered by no-fault insurance, so it's important to protect the value of your car by purchasing Comprehensive and Collision coverage. And, purchasing property damage liability coverage will pay for damage you cause to someone else's property in an auto accident, if you are held responsible for the repairs.
Mandatory coverages vary by state. Your agent or insurance company representative will explain how each coverage works and the choices you have for protecting yourself and your family.
An Overseas Traveler's Insurance Guide
There's nothing like the feeling of excitement when you're going on an overseas vacation. The red X's on the calendar boldly show the countdown to your trip. Your bags are packed, your tickets are ready, your passport is ready for its stamp, and before you know it, you'll be on your way! But what happens when you get to your destination and the unthinkable happens? What if weather makes your trip too treacherous to chance? You end up getting sick? You get pulled over or your baggage is lost? Insurance.com has a few suggestions as to what you can do to make your trip as smooth as possible, even when the unthinkable happens.
What to check before you leave:
Health Insurance: In most cases, health insurance plans do not extend outside of the United States, so it is a good idea to check with your insurance provider and see exactly what your coverage entails.
Car Insurance: If you are going to be renting a car and driving when you go overseas, it is a smart idea to apply for an international driver's license. Be sure to read up on the rules for driving in the country you are going to, because they may differ from the driving laws here in the United States. Lastly, be sure you have adequate car insurance before you leave. Because unless you have a true umbrella policy which covers you worldwide, your personal car insurance policy will not cover you if you are out of the United States. You can do this by contacting your auto insurance company or agent before you leave. If you'd like to learn more about driving overseas or to get information on an international driver's license or traveler's insurance, log on to the AAA website, which offers answers and insights on what you may need when traveling overseas.
Lost Luggage Insurance: Lost luggage insurance is something that would be a good idea to check up on before you leave on your overseas vacation. Though homeowners insurance policies cover theft or destruction of personal property, they only cover the items that are listed in the actual policy. With lost luggage insurance, you get the added protection of knowing that if your bags are lost during your vacation, their contents will be covered.
Trip Interruption Insurance: There's nothing worse than being excited and ready to go on a trip, then it being canceled due to conditions that are out of your control. A newer kind of insurance called "trip interruption insurance" is now available that may help cover all, or part of the expenses you paid in the event the trip is canceled. Examples include if a cruise line you booked on goes out of business before your departure date, or if inclement weather causes a cancellation you will be reimbursed. Another perk of trip interruption insurance is that in some cases, if you must cancel the trip due to sickness or death in the family, you may be covered for the flight and hotel costs.
What's in an overseas insurance pack?
Many insurance companies offer full-overseas insurance packs for the overseas travelers, beginning with a possible seven-day coverage that costs less than $50 per person. Age, number of people in your party, and how long you plan on staying at your destination determines the reimbursement price. Packages generally include:
* Emergency medical evacuation
* Emergency medical and dental
* Accidental death and dismemberment
* Repatriation of remains
* Visitor to bedside and return of dependent children
* Pre-existing condition waiver
* Lost/damaged baggage
* Rental car protection
* Trip cancellation/delay/interruption/default
Insurance.com overseas travel tips
* Do not leave your money in bags you check. Be sure to keep cash, travelers checks, travel documents, valuables and jewelry in your carry-on
* Add something to your suitcase that makes it easily identifiable-tie a brightly colored ribbon to the handle or mark an "X" on it with duct tape. This will make it easier to identify in the event your luggage is lost
* Choose a rental car that has a trunk-hatchbacks are a homing beacon for thieves
* Drink bottled water instead of tap. Though many places have filtered water now, it may still make you ill, which can potentially ruin your vacation
* Phrase books definitely come in handy when going to a country where the predominant language is one you aren't familiar with. The book may also save you a lot of time and headaches when someone actually knows what you're trying to ask for
* Travel in the off-season. To save the most money and find the best deals, it's a good idea to plan ahead and look to traveling to your destination at a time that not everyone and their mother is going.
Whether you're preparing for that romantic getaway, an action-packed adventure, or just a trip to new overseas destination, Insurance.com is here to help. If you are interested in receiving a travel insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class travel insurance providers - helping you find the best travel insurance coverage to protect you in your overseas travels.
What to check before you leave:
Health Insurance: In most cases, health insurance plans do not extend outside of the United States, so it is a good idea to check with your insurance provider and see exactly what your coverage entails.
Car Insurance: If you are going to be renting a car and driving when you go overseas, it is a smart idea to apply for an international driver's license. Be sure to read up on the rules for driving in the country you are going to, because they may differ from the driving laws here in the United States. Lastly, be sure you have adequate car insurance before you leave. Because unless you have a true umbrella policy which covers you worldwide, your personal car insurance policy will not cover you if you are out of the United States. You can do this by contacting your auto insurance company or agent before you leave. If you'd like to learn more about driving overseas or to get information on an international driver's license or traveler's insurance, log on to the AAA website, which offers answers and insights on what you may need when traveling overseas.
Lost Luggage Insurance: Lost luggage insurance is something that would be a good idea to check up on before you leave on your overseas vacation. Though homeowners insurance policies cover theft or destruction of personal property, they only cover the items that are listed in the actual policy. With lost luggage insurance, you get the added protection of knowing that if your bags are lost during your vacation, their contents will be covered.
Trip Interruption Insurance: There's nothing worse than being excited and ready to go on a trip, then it being canceled due to conditions that are out of your control. A newer kind of insurance called "trip interruption insurance" is now available that may help cover all, or part of the expenses you paid in the event the trip is canceled. Examples include if a cruise line you booked on goes out of business before your departure date, or if inclement weather causes a cancellation you will be reimbursed. Another perk of trip interruption insurance is that in some cases, if you must cancel the trip due to sickness or death in the family, you may be covered for the flight and hotel costs.
What's in an overseas insurance pack?
Many insurance companies offer full-overseas insurance packs for the overseas travelers, beginning with a possible seven-day coverage that costs less than $50 per person. Age, number of people in your party, and how long you plan on staying at your destination determines the reimbursement price. Packages generally include:
* Emergency medical evacuation
* Emergency medical and dental
* Accidental death and dismemberment
* Repatriation of remains
* Visitor to bedside and return of dependent children
* Pre-existing condition waiver
* Lost/damaged baggage
* Rental car protection
* Trip cancellation/delay/interruption/default
Insurance.com overseas travel tips
* Do not leave your money in bags you check. Be sure to keep cash, travelers checks, travel documents, valuables and jewelry in your carry-on
* Add something to your suitcase that makes it easily identifiable-tie a brightly colored ribbon to the handle or mark an "X" on it with duct tape. This will make it easier to identify in the event your luggage is lost
* Choose a rental car that has a trunk-hatchbacks are a homing beacon for thieves
* Drink bottled water instead of tap. Though many places have filtered water now, it may still make you ill, which can potentially ruin your vacation
* Phrase books definitely come in handy when going to a country where the predominant language is one you aren't familiar with. The book may also save you a lot of time and headaches when someone actually knows what you're trying to ask for
* Travel in the off-season. To save the most money and find the best deals, it's a good idea to plan ahead and look to traveling to your destination at a time that not everyone and their mother is going.
Whether you're preparing for that romantic getaway, an action-packed adventure, or just a trip to new overseas destination, Insurance.com is here to help. If you are interested in receiving a travel insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class travel insurance providers - helping you find the best travel insurance coverage to protect you in your overseas travels.
My Credit Affects My Auto Insurance Rate?
You probably know that banks use information in your credit report to determine if they'll extend credit. But did you know that in most states, insurance companies also consider your credit history? Good or bad, your credit history may affect which companies will sell you homeowners or auto insurance coverage and will often determine the price you'll pay.
Late credit card payments or not having a credit history at all will often affect your rates. Here are two examples:
* Last year, you were unemployed for six months. Before you could find a new job, you fell behind on several credit card payments, but you've caught up. Now your auto insurance rates are going up, even though you've never filed a claim against your policy. What's the reason?
* You've always paid your bills on time, but you pay by check or with cash instead of applying for credit—even for major purchases. Why would this be a problem?
What's the score here?
Insurance companies have always used various criteria to determine who to insure and at what rates. For example, auto insurance rates are based on your age, driving record, make and model of your car, and how many insurance claims you've filed in the past. In states where it is permitted by law, insurance companies also use credit information as an additional factor to help predict which drivers represent more risk. Insurers believe that the more stable your credit history, the less likely you are to have an accident or file a claim against your auto or homeowners insurance policy. And the more likely you are to pay your insurance premium payments.
If your credit history (along with other factors considered) suggests that you are likely to be a responsible driver, you may be offered a lower premium. But if your credit history is tarnished—or if you have little or no credit history—you may pay higher premiums for the coverage you're offered. You may even be denied coverage altogether.
How you can improve the score
If your rate changes or you are denied insurance coverage because of your credit history, the federal Fair Credit Reporting Act allows you to order a free copy of your credit report from the bureau used by the auto insurance company. If you feel the information provided to the credit bureau is incorrect, you can dispute it. Every insurance company is required to disclose whether you rate was affected by your credit report, and other consumer reports, such as your motor vehicle report.
If you've been turned down for insurance, this may feel like too little, too late. But if your credit history is affecting your ability to get auto or homeowners insurance (or the premiums you're charged for it), here are a few things you can do:
* Clean up your credit immediately. Pay at least the minimum amount due every month, consolidate high interest credit cards on a lower rate card, and don't spend beyond your means.
* If you don't have any credit, get some. Your lack of history is what's hurting you; to the insurance companies, you're an unknown quantity. Although you don't want to run up excessive debt, you do want to show that you can use credit responsibly. Student or car loans, fitness club memberships, and store credit cards are usually easy to get and can help your credit report if paid regularly and used correctly.
* Once a year, check your credit reports at AnnualCreditReport.com. This site allows you to request a free credit file disclosure once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. The information contained in one report may not be reflected by the others, so make sure all the information is correct and dispute any errors with both the creditor and the credit bureaus involved.
For now, the use of credit reports is an industry standard. Make your credit work for you by watching it closely. In most cases, you may be rewarded with lower premiums if you do so.
Late credit card payments or not having a credit history at all will often affect your rates. Here are two examples:
* Last year, you were unemployed for six months. Before you could find a new job, you fell behind on several credit card payments, but you've caught up. Now your auto insurance rates are going up, even though you've never filed a claim against your policy. What's the reason?
* You've always paid your bills on time, but you pay by check or with cash instead of applying for credit—even for major purchases. Why would this be a problem?
What's the score here?
Insurance companies have always used various criteria to determine who to insure and at what rates. For example, auto insurance rates are based on your age, driving record, make and model of your car, and how many insurance claims you've filed in the past. In states where it is permitted by law, insurance companies also use credit information as an additional factor to help predict which drivers represent more risk. Insurers believe that the more stable your credit history, the less likely you are to have an accident or file a claim against your auto or homeowners insurance policy. And the more likely you are to pay your insurance premium payments.
If your credit history (along with other factors considered) suggests that you are likely to be a responsible driver, you may be offered a lower premium. But if your credit history is tarnished—or if you have little or no credit history—you may pay higher premiums for the coverage you're offered. You may even be denied coverage altogether.
How you can improve the score
If your rate changes or you are denied insurance coverage because of your credit history, the federal Fair Credit Reporting Act allows you to order a free copy of your credit report from the bureau used by the auto insurance company. If you feel the information provided to the credit bureau is incorrect, you can dispute it. Every insurance company is required to disclose whether you rate was affected by your credit report, and other consumer reports, such as your motor vehicle report.
If you've been turned down for insurance, this may feel like too little, too late. But if your credit history is affecting your ability to get auto or homeowners insurance (or the premiums you're charged for it), here are a few things you can do:
* Clean up your credit immediately. Pay at least the minimum amount due every month, consolidate high interest credit cards on a lower rate card, and don't spend beyond your means.
* If you don't have any credit, get some. Your lack of history is what's hurting you; to the insurance companies, you're an unknown quantity. Although you don't want to run up excessive debt, you do want to show that you can use credit responsibly. Student or car loans, fitness club memberships, and store credit cards are usually easy to get and can help your credit report if paid regularly and used correctly.
* Once a year, check your credit reports at AnnualCreditReport.com. This site allows you to request a free credit file disclosure once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. The information contained in one report may not be reflected by the others, so make sure all the information is correct and dispute any errors with both the creditor and the credit bureaus involved.
For now, the use of credit reports is an industry standard. Make your credit work for you by watching it closely. In most cases, you may be rewarded with lower premiums if you do so.
Motorcycle Insurance: What You Need to Know
You bought a new motorcycle and you're ready to hit the road. Right? Not so fast. You may think that safety gear is all you need to protect yourself, but if you don't know the basics of motorcycle insurance, you could injure your finances. (I know, I know, it's a terrible joke. But hey, I write for an insurance website, so cut me some slack!)
Why buy motorcycle insurance?
It's pretty simple. Motorcycle insurance is required by law in many states. Besides that, it can protect you from losing your house or life savings or both if you're responsible for causing personal injuries or property damage. It can also cover your medical bills, theft and damage from vandalism. And, if you have a loan or lease, the lender will usually make you buy coverage for the bike itself.
The big one: liability coverage
This is the legally required coverage most people think of when they talk about insurance. It breaks down into two categories:
* Bodily injury liability: Can pay for medical bills, pain and suffering, and loss of wages for people you kill or injure in an accident you cause. Sometimes you don't have to be completely at fault. Even if you're partially responsible for the accident, you might still have to pay.
* Property damage liability: Can pay for repairing or replacing the property of other people, like cars, telephone poles and so forth.
This coverage will also pay for your defense costs if you're sued because of an accident.
Consider buying more than the minimum amount of coverage required in your state. Why? Well, if you have a lot of assets to protect, you'll want to make sure you're protecting those assets. And if you don't have a lot of assets, how will you pay the bills?
Optional but important: protection for you
Although these coverages are usually optional, they all protect you and your property directly. Unless you're rich, take a good look at them.
* Uninsured/underinsured motorist (UM/UIM) coverage: Can cover expenses caused by other drivers with little (underinsured) or no (uninsured) auto insurance. It can cover things like your medical bills, lost wages and pain and suffering. It even protects your riders and other people covered by your policy while they're riding in/on other vehicles or when they're pedestrians.
* Medical payments coverage or personal injury protection (PIP): Can cover a small amount of medical or funeral expenses (or both) for you and your riders, in addition to other people covered by your policy while they're riding in/on other vehicles or when they're pedestrians.
* Comprehensive: Can pay for damage to your bike not related to an accident (e.g., fire, flood, vandalism, theft and animal collisions). Comprehensive is kind of a dumb name for it, since it's pretty cheap coverage that doesn't apply in all situations – but that's what they call it.
* Collision: Can pay to repair or replace your motorcycle if it's damaged in an accident. It doesn't matter who caused the accident – it could even be with a tree. Animals don't count, however. Why is hitting an animal not a collision? It just isn't. However, you can't buy collision without buying comprehensive, so you'll have coverage for animal accidents either way.
Even more coverage
These are some of the smaller and most-overlooked coverages, but they're all relatively cheap for the protection they provide. However, if you don't need them, they're a waste of money.
* Accessory coverage: Can pay for damage to or loss of accessories like modifications, custom paint, safety equipment (like motorcycle helmets), wheels and more.
* Roadside assistance: Can cover towing, minor repairs, and fuel delivery if your bike breaks down, gets stuck near the road or runs out of fluids.
* Rental coverage: Can cover the cost of renting a replacement motorcycle if yours is in an accident.
* Trailer coverage: Covers a trailer used to transport your bike.
* Trip interruption coverage: Covers expenses like food and lodging if your bike breaks down away from home.
And if I buy all that, I don't pay anything else?
If you believe that, you'll believe anything! There's no such thing as "full coverage." It's just something people say so they won't worry. Here's what you usually end up paying for:
* Deductibles: These are what you agree to pay yourself before your insurance takes over. You can choose different deductibles for different coverages. Liability coverage never has a deductible.
* Exclusions: These are situations your policy specifically mentions that it won't pay for. Examples include wear-and-tear and intentional acts. Racing is also excluded.
* Excess costs: Your policy lists a dollar amount for coverage limits. Anything over this amount won't come from your motorcycle insurance company.
Discounts and savings
Many motorcycle insurance discounts are similar to auto insurance discounts. These are some special ones for riders:
* Motorcycle safety training classes (bonus points if you're an instructor)
* Riders club membership
* Theft recovery systems (like LoJack®)
Comparison shopping: boring but useful
Motorcycle insurance quotes for the same coverage on the same bike can be different from each company. If you're getting insurance for the first time or think you're paying too much, it pays to check prices. Just make sure you're comparing the same coverage and make sure the company has a good financial strength rating.
Why buy motorcycle insurance?
It's pretty simple. Motorcycle insurance is required by law in many states. Besides that, it can protect you from losing your house or life savings or both if you're responsible for causing personal injuries or property damage. It can also cover your medical bills, theft and damage from vandalism. And, if you have a loan or lease, the lender will usually make you buy coverage for the bike itself.
The big one: liability coverage
This is the legally required coverage most people think of when they talk about insurance. It breaks down into two categories:
* Bodily injury liability: Can pay for medical bills, pain and suffering, and loss of wages for people you kill or injure in an accident you cause. Sometimes you don't have to be completely at fault. Even if you're partially responsible for the accident, you might still have to pay.
* Property damage liability: Can pay for repairing or replacing the property of other people, like cars, telephone poles and so forth.
This coverage will also pay for your defense costs if you're sued because of an accident.
Consider buying more than the minimum amount of coverage required in your state. Why? Well, if you have a lot of assets to protect, you'll want to make sure you're protecting those assets. And if you don't have a lot of assets, how will you pay the bills?
Optional but important: protection for you
Although these coverages are usually optional, they all protect you and your property directly. Unless you're rich, take a good look at them.
* Uninsured/underinsured motorist (UM/UIM) coverage: Can cover expenses caused by other drivers with little (underinsured) or no (uninsured) auto insurance. It can cover things like your medical bills, lost wages and pain and suffering. It even protects your riders and other people covered by your policy while they're riding in/on other vehicles or when they're pedestrians.
* Medical payments coverage or personal injury protection (PIP): Can cover a small amount of medical or funeral expenses (or both) for you and your riders, in addition to other people covered by your policy while they're riding in/on other vehicles or when they're pedestrians.
* Comprehensive: Can pay for damage to your bike not related to an accident (e.g., fire, flood, vandalism, theft and animal collisions). Comprehensive is kind of a dumb name for it, since it's pretty cheap coverage that doesn't apply in all situations – but that's what they call it.
* Collision: Can pay to repair or replace your motorcycle if it's damaged in an accident. It doesn't matter who caused the accident – it could even be with a tree. Animals don't count, however. Why is hitting an animal not a collision? It just isn't. However, you can't buy collision without buying comprehensive, so you'll have coverage for animal accidents either way.
Even more coverage
These are some of the smaller and most-overlooked coverages, but they're all relatively cheap for the protection they provide. However, if you don't need them, they're a waste of money.
* Accessory coverage: Can pay for damage to or loss of accessories like modifications, custom paint, safety equipment (like motorcycle helmets), wheels and more.
* Roadside assistance: Can cover towing, minor repairs, and fuel delivery if your bike breaks down, gets stuck near the road or runs out of fluids.
* Rental coverage: Can cover the cost of renting a replacement motorcycle if yours is in an accident.
* Trailer coverage: Covers a trailer used to transport your bike.
* Trip interruption coverage: Covers expenses like food and lodging if your bike breaks down away from home.
And if I buy all that, I don't pay anything else?
If you believe that, you'll believe anything! There's no such thing as "full coverage." It's just something people say so they won't worry. Here's what you usually end up paying for:
* Deductibles: These are what you agree to pay yourself before your insurance takes over. You can choose different deductibles for different coverages. Liability coverage never has a deductible.
* Exclusions: These are situations your policy specifically mentions that it won't pay for. Examples include wear-and-tear and intentional acts. Racing is also excluded.
* Excess costs: Your policy lists a dollar amount for coverage limits. Anything over this amount won't come from your motorcycle insurance company.
Discounts and savings
Many motorcycle insurance discounts are similar to auto insurance discounts. These are some special ones for riders:
* Motorcycle safety training classes (bonus points if you're an instructor)
* Riders club membership
* Theft recovery systems (like LoJack®)
Comparison shopping: boring but useful
Motorcycle insurance quotes for the same coverage on the same bike can be different from each company. If you're getting insurance for the first time or think you're paying too much, it pays to check prices. Just make sure you're comparing the same coverage and make sure the company has a good financial strength rating.
Uninsured Motorists Coverage: 8 Answers You Need
1. Does UM/UIM cover property damage in hit-and-run accidents?
Almost never. Accidents where the other driver can't be identified are handled under your own Collision coverage. This includes accidents where a hit-and-run driver damages your car while it's parked. It may not seem fair to have to pay for something that wasn't your fault, but it keeps auto insurance rates lower for the majority of uninsured accidents.
2. Should I buy UM/UIM if I already have health insurance?
Absolutely! Always buy Uninsured/Underinsured motorist coverage, because it pays for many things that other types of insurance usually don't, such as lost wages and pain and suffering. So, it's not really a waste to purchase it even if you think you're covered otherwise. Plus, if you have a high deductible for your health insurance, UM/UIM can cover your deductible.
3. Why should I pay for auto insurance that basically covers other drivers? Doesn't UM/UIM encourage people to drive without insurance?
UM/UIM coverage protects you and your family and passengers, not the other driver. It's true that the person who hit you should have purchased the coverage, but having UM coverage allows you to quickly receive payment for your claim, saving you the time and expense of suing the other driver. Rest assured your insurance company will pursue the guilty driver to recover the money they had to pay.
4. Will I get paid if the other driver denies fault?
The other driver doesn't need to admit fault. Your auto insurance company (or a court) will determine fault and handle your UM/UIM claim based on their investigation of the facts. If they find the uninsured driver at fault, then you will be entitled to payment up to the limits of UM/UIM coverage you purchased.
5. How much money can I collect under my UM/UIM coverage?
You can never collect more than your policy's UM/UIM limit for claims under this coverage. Most people buy UM/UIM coverage in an amount that matches their Bodily Injury Liability (BI) limits, but you can choose to buy less UM/UIM coverage if you wish. For example, if you buy 100/300 BI limits (100 per person/300 per accident), but choose to buy 50/100 limits for UM/UIM, you can collect up to $50,000 per person in an accident with an uninsured driver, up to a maximum of $100,000 for all drivers injured in the same accident.
For UIM coverage, the total amount you can collect from both the other driver's insurance company and your own is the number shown on your policy – in this example 50/100. You don't normally add that to what you get from the other driver – although you can in a few states.
6. Can I make a claim on the other driver's UM/UIM coverage?
No. UM/UIM coverage is something you buy to protect yourself – and your property, if you purchase UMPD coverage. You're essentially protecting yourself from drivers who don't have auto insurance or don't have enough to pay for accidents they cause.
7. Should I get UMPD coverage instead of Collision coverage? Which is better?
UMPD is only available in certain states, so unless it was offered to you when you bought your policy, it's probably not an option. And, if you're making a loan or lease payment on your car, you'll be required to buy Collision coverage, until it's paid for. After that, you can choose – knowing that UMPD coverage will only pay for damage caused by an uninsured driver you can identify.
So, if you have to pick one, remember that Collision coverage will pay for all situations involving an accidental Collision. If opting for Collision coverage simply won't work financially, UMPD can serve as a last resort. In a limited number of states and situations, you can purchase both, and we recommend you do so, if that option is available.
8. Does UMPD coverage pay for car damage from hitting a car part lying in the road?
Unfortunately, it doesn't, unless you can prove that it came from a specific uninsured motorist. Remember that the coverage you've purchased is Uninsured Motorists Property Damage coverage – so you must find the motorist who's at fault before you can get paid.
Uninsured Motorists Coverage Basics
Uninsured/Underinsured motorists coverage (UM/UIM) refers to two separate but similar coverages: UM (Uninsured) and UIM (Underinsured).
1. UM: This coverage can be divided into Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD). Both are comparatively cheap coverages.
* UMBI can pay for injuries to people protected under your policy – including family members in other cars and passengers in your insured cars – resulting from a car accident caused by an uninsured driver. A driver is uninsured if: they have no legal auto insurance, they have insurance but their company can't or won't pay or they are a hit-and-run driver.
* UMPD can pay for damage to your car by an uninsured driver you can identify, but almost never a hit-and-run driver. If you're lucky enough to have the option of purchasing UMPD and Collision coverage, UMPD usually pays your Collision deductible only.
2. UIM can pay for injuries the same way UMBI does, but for drivers who have auto insurance that is lower than your policy's limit and not enough to cover the bills.
Almost never. Accidents where the other driver can't be identified are handled under your own Collision coverage. This includes accidents where a hit-and-run driver damages your car while it's parked. It may not seem fair to have to pay for something that wasn't your fault, but it keeps auto insurance rates lower for the majority of uninsured accidents.
2. Should I buy UM/UIM if I already have health insurance?
Absolutely! Always buy Uninsured/Underinsured motorist coverage, because it pays for many things that other types of insurance usually don't, such as lost wages and pain and suffering. So, it's not really a waste to purchase it even if you think you're covered otherwise. Plus, if you have a high deductible for your health insurance, UM/UIM can cover your deductible.
3. Why should I pay for auto insurance that basically covers other drivers? Doesn't UM/UIM encourage people to drive without insurance?
UM/UIM coverage protects you and your family and passengers, not the other driver. It's true that the person who hit you should have purchased the coverage, but having UM coverage allows you to quickly receive payment for your claim, saving you the time and expense of suing the other driver. Rest assured your insurance company will pursue the guilty driver to recover the money they had to pay.
4. Will I get paid if the other driver denies fault?
The other driver doesn't need to admit fault. Your auto insurance company (or a court) will determine fault and handle your UM/UIM claim based on their investigation of the facts. If they find the uninsured driver at fault, then you will be entitled to payment up to the limits of UM/UIM coverage you purchased.
5. How much money can I collect under my UM/UIM coverage?
You can never collect more than your policy's UM/UIM limit for claims under this coverage. Most people buy UM/UIM coverage in an amount that matches their Bodily Injury Liability (BI) limits, but you can choose to buy less UM/UIM coverage if you wish. For example, if you buy 100/300 BI limits (100 per person/300 per accident), but choose to buy 50/100 limits for UM/UIM, you can collect up to $50,000 per person in an accident with an uninsured driver, up to a maximum of $100,000 for all drivers injured in the same accident.
For UIM coverage, the total amount you can collect from both the other driver's insurance company and your own is the number shown on your policy – in this example 50/100. You don't normally add that to what you get from the other driver – although you can in a few states.
6. Can I make a claim on the other driver's UM/UIM coverage?
No. UM/UIM coverage is something you buy to protect yourself – and your property, if you purchase UMPD coverage. You're essentially protecting yourself from drivers who don't have auto insurance or don't have enough to pay for accidents they cause.
7. Should I get UMPD coverage instead of Collision coverage? Which is better?
UMPD is only available in certain states, so unless it was offered to you when you bought your policy, it's probably not an option. And, if you're making a loan or lease payment on your car, you'll be required to buy Collision coverage, until it's paid for. After that, you can choose – knowing that UMPD coverage will only pay for damage caused by an uninsured driver you can identify.
So, if you have to pick one, remember that Collision coverage will pay for all situations involving an accidental Collision. If opting for Collision coverage simply won't work financially, UMPD can serve as a last resort. In a limited number of states and situations, you can purchase both, and we recommend you do so, if that option is available.
8. Does UMPD coverage pay for car damage from hitting a car part lying in the road?
Unfortunately, it doesn't, unless you can prove that it came from a specific uninsured motorist. Remember that the coverage you've purchased is Uninsured Motorists Property Damage coverage – so you must find the motorist who's at fault before you can get paid.
Uninsured Motorists Coverage Basics
Uninsured/Underinsured motorists coverage (UM/UIM) refers to two separate but similar coverages: UM (Uninsured) and UIM (Underinsured).
1. UM: This coverage can be divided into Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD). Both are comparatively cheap coverages.
* UMBI can pay for injuries to people protected under your policy – including family members in other cars and passengers in your insured cars – resulting from a car accident caused by an uninsured driver. A driver is uninsured if: they have no legal auto insurance, they have insurance but their company can't or won't pay or they are a hit-and-run driver.
* UMPD can pay for damage to your car by an uninsured driver you can identify, but almost never a hit-and-run driver. If you're lucky enough to have the option of purchasing UMPD and Collision coverage, UMPD usually pays your Collision deductible only.
2. UIM can pay for injuries the same way UMBI does, but for drivers who have auto insurance that is lower than your policy's limit and not enough to cover the bills.
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