Cont...

Categories and confusion
Since we’ve stumbled into types of coverage, it’s a perfect opportunity to review the different categories of the sometimes confusing types of insurance available in the typical motorcycle policy.

Comprehensive coverage. The foundation of any insurance policy protects the motorcycle from any damage that didn’t happen from an accident. Covering everything from damages caused by theft, fire, vandalism, disasters to hitting an animal on the road.

Bodily Injury Liability Insurance. Bodily injury liability is another type of coverage that you are required by law to carry in most states. Legal minimum in many states is as little as $10,000 per person, per accident. Your coverage pays for injury to others when the accident is your fault.

If you are involved in a motorcycle accident and the other driver is at fault, then the other driver's property damage liability coverage pays for your motorcycle damage. Property damage liability insurance is required by law, but the legal minimum amount for this coverage in some states is only $5,000 per accident. So, if a driver with the $5,000 minimum totals out your $15,000 bike, his insurance company will pay you only $5,000. How will you get the other $10,000? If the other driver files for bankruptcy, you end up with nothing.

Underinsured Coverage. If you purchased underinsured property damage coverage, you may be able to collect the other $10,000 to fix your bike. This insurance is used to "fill the gap" between the actual amount of damages and what the other driver's insurance paid, but only if the other driver caused the accident and only if you purchased limits high enough to cover all of the remaining damage. In other words, if the legal minimum requirement in your state is $5,000 for property damage liability, and you drive a $15,000 bike, you should have at least $10,000 limits on you underinsured property damage.

Uninsured motorist coverage is the most important insurance you can buy, picking up where the other driver's insurance runs out. This type of insurance is very important. If you are injured in a motorcycle accident, break you leg, spend a week in the hospital and are off work for six months and experience a great deal of pain and suffering. You need coverage high enough to pay for your damages. The other driver only has a minimum policy of insurance (ie) $15,000. You will be left holding the bag. It is common that the injured persons medical expenses and wage losses are higher than the other persons insurance. Also nothing is left for pain and suffering or permanent disability.

Therefore, you need underinsured motorist coverage to pick up the difference. This type of coverage is strongly recommended because of its importance. It is suggested that you carry a minimum of 100/300 coverage (100 per person/300 per accident) this will also protect your passenger.

In many metropolitan areas the other drivers are uninsured. These uninsured drivers can make up as high as 40% of the drivers on the road! As you know, the motorcycle driver is not at fault in most accidents so there's a high probability of being hit and injured by a driver who has no insurance. The only way you can protect yourself is to purchase uninsured motorist coverage. Uninsured motorist coverage pays for medical expenses, property damage, and pain and suffering (however, there are limitations in no-fault states). We strongly recommend that you purchase this insurance and do not drive without it. Many riders mistakenly believe uninsured motorist coverage pays only for medical bills, and that they do not need it because they carry health insurance. Actually, it pays for medical expenses, as well as loss of earnings, and pain and suffering.

Collision Coverage. Collision coverage will pay for damages to your bike, less your deductible. This coverage applies without regard to fault. Even if the damage is your fault the coverage will apply. You also can use this coverage when you have been hit by another person and they are at fault.

Medical Payments. This coverage pays the cost of necessary medical care you receive as a result of a motorcycle accident and can be used regardless of who is at fault. The coverage often is limited to medical treatment received within the first three years after an accident and is limited to a specific dollar amount. In some states, Medical Payments only applies after other medical insurance is exhausted.
 
Custom Parts and Equipment (CPE). When Physical Damage Liability coverage is purchased, $1,000 of Custom Parts and Equipment (CPE) coverage is included. Additional CPE coverage can be purchased to cover equipment, up to $30,000 in value. CPE covers equipment, devices, accessories, enhancements and changes, other than those that the manufacturer originally installs, that alter the appearance or performance of the motorcycle or ATV. This includes, but is not limited to:

• Any electronic equipment, antennas and other devices used exclusively to send or receive audio, visual or data signals or play back recorded media, other than those that the manufacturer originally installs, that are permanently installed on the motorcycle using bolts or brackets, including slide-out brackets.
• Sidecars
• Trailers designed to be pulled behind a motorcycle or ATV
• Trike conversion kits
• Custom paint, custom plating or custom exhaust
• Mower blades, plow blades or winches
• Safety riding apparel, including helmets. (Coverage is provided in the event of a Collision loss. Theft is not covered.)

Note: You should retain photos of the motorcycle and all receipts for custom parts.