| AUTO & MOTORCYCLE INSURANCE 6 Parts of an Auto Policy Auto Damages Motorcycle Coverage
WHAT'S IN AN AUTO POLICY The 6 Parts of an Auto Policy Your auto policy may include all 6 coverages or some of them. Each coverage is priced separately. 1. Bodily Injury Liability
For injuries the policyholder causes to someone else.
2. Medical Payments or Personal Injury Protection (PIP)
For treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident
3. Property Damage Liability
For damage the policyholder caused to someone else's property.
4. Collision
For damage to the policyholder's car from a collision. The collision could be with another car, a light post, fire hydrant, etc.
5. Comprehensive
For damage to the policyholder's car that doesn't involve a collision with another car. Covered risks include fire, theft, falling objects, missiles, explosion, earthquake, flood, riot and civil commotion.
6. Uninsured Motorist Coverage
For treatment of policyholder's injuries as a result of collision with an uninsured driver. Underinsured motorist coverage can also be included in an auto policy. Underinsured motorist coverage comes into play when an at-fault driver has auto liability insurance, but the limit of insurance is inadequate to pay for your damages.
Each state requires that you have certain types of coverages with minimum liability limits. The insurance industry recommends that your bodily injury liability limits be $100,000 per person and $300,000 per occurrence.
| State | Insurance Required | Minimum Liability Limits* | | AL | Bodily Injury & Property Damage Liability (effective 6/2000) | 20/40/10 | | AZ | Bodily Injury & Property Damage Liability | 50/100/25 | | AR | Bodily Injury & Property Damage Liability | 25/50/15 | | CA | Bodily Injury & Property Damage Liability | 15/30/5f(m) | | CO | Bodily Injury & Property Damage Liability, Personal Injury Protection | 25/50/1 | | CT | Bodily Injury & Property Damage Liability, Uninsured Motorist, Underinsured Motorist | 20/40/10 | | DE | Bodily Injury & Property Damage Liability, Personal Injury Protection | 15/30/5(j) | | DC | Bodily Injury & Property Damage Liability, Uninsured Motorist, | 25/50/10 | | FL | Bodily Injury & Property Damage Liability | 10/20/10 | | GA | Bodily Injury & Property Damage Liability | 15/30/10 | | HI | Bodily Injury & Property Damage Liability, Personal Injury Protection | 20/40/10 | | ID | Bodily Injury & Property Damage Liability | 25/50/15 | | IL | Bodily Injury & Property Damage Liability, Uninsured Motorist | 20/40/15 | | IN | Bodily Injury & Property Damage Liability | 25/50/10 | | IA | Bodily Injury & Property Damage Liability | 20/40/1 | | KS | Bodily Injury & Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 25/50/10 | | KY | Bodily Injury & Property Damage Liability, Personal Injury Protection | 25/50/10 | | LA | Bodily Injury & Property Damage Liability | 10/20/10 | | ME | Bodily Injury & Property Damage Liability, Uninsured Motorist, Underinsured Motorist(n) | 50/100/25(k) | | MD | Bodily Injury & Property Damage Liability, Personal Injury Protection (may be waived for the policyholder but compulsory for passengers), Uninsured Motorist | 20/40/10 | | MA | Bodily Injury & Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 20/40/5 | | MI | Bodily Injury & Property Damage Liability, Personal Injury Protection | 20/40/10 | | MN | Bodily Injury & Property Damage Liability, Personal Injury Protection, Uninsured Motorist, Underinsured Motorist | 30/60/10 | | MS | Financial Responsibility Only | 10/20/5 | | MO | Bodily Injury, Property Damage Liability, Uninsured Motorist | 25/50/10 | | MT | Bodily Injury & Property Damage Liability | 25/50/10 | | NE | Bodily Injury & Property Damage Liability | 25/50/25 | | NV | Bodily Injury & Property Damage Liability | 15/30/10 | | NH | Financial Responsibility Only, UM | 25/50/25 | | NJ | Bodily Injury & Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 15/30/5(1) | | NM | Bodily Injury & Property Damage Liability | 25/50/10 | | NY | Bodily Injury & Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 25/50/10*
50/100 if the injury results in death) | | NC | Bodily Injury & Property Damage Liability | 25/50/15 | | ND | Bodily Injury & Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 25/50/25 | | OH | Bodily Injury & Property Damage Liability | 12.5/25/7.5 | | OK | Bodily Injury & Property Damage Liability | 10/20/10 | | OR | Bodily Injury & Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 25/50/10 | | PA | Bodily Injury & Property Damage Liability, Medical Payments | 15/30/5 | | RI | Bodily Injury & Property Damage Liability, Uninsured Motorist | 25/50/25 | | SC | Bodily Injury & Property Damage Liability, Uninsured Motorist | 15/30/10 | | SD | Bodily Injury & Property Damage Liability, Uninsured Motorist | 25/50/25 | | TN | Financial Responsibility Only | 25/50/10 | | TX | Bodily Injury & Property Damage Liability | 20/40/15 | | UT | Bodily Injury & Property Damage Liability, Personal Injury Protection | 25/50/15 | | VT | Bodily Injury & Property Damage Liability, Uninsured Motorist, Underinsured Motorist | 25/50/10 | | VA | Bodily Injury & Property Damage Liability, Uninsured Motorist | 25/50/20 | | WA | Bodily Injury & Property Damage Liability | 25/50/10 | | WI | Financial Responsibility Only, Uninsured Motorist | 25/50/10 | | WY | Bodily Injury & Property Damage Liability | 25/50/20 | | * The first two
figures refer to bodily injury liability limits and the third
figure refers to property damage liability. For example,
20/40/10 means coverage up to $40,000 for all persons injured
in an accident, subject to a limit of $20,000 for one
individual and $10,000 coverage for property
damage. | Source: Insurance Information Institute
DAMAGES TO YOUR CAR
A common loss is the physical damage to your vehicle that can result from an accident. There are two types of physical damage coverages: Collision and Comprehensive.
Collision coverage pays for any damage to your car caused by accidental impact with another vehicle or object, or if your car overturns. The maximum amount to be paid is limited to the actual cash value of your vehicle, which is often referred to as the "local market value," less the collision deductible. Please remember that the local market value is only a starting point. The actual cost of the car may be more or less depending on the actual condition of the car.
Comprehensive coverage pays for most types of damage to your car resulting from a situation other than a collision. Typical examples include breakage of glass, falling objects, fire, theft, windstorm, hail, water, flood, malicious mischief, vandalism, or impact with a bird or animal. The maximum amount paid is limited to the actual cash value of your vehicle less the "other than collision" deductible.
Please be aware that your policy will not pay for damages due to normal wear and tear such as mechanical or electrical breakdowns and flat tires.
Source: Insurance Information Institute
MOTORCYCLE INSURANCE
You just bought a motorcycle and can't wait to "get your motor running, head out on the highway, lookin' for adventure and whatever comes your way" & until boom! out of nowhere you get rear-ended.
When the freedom of the open road lies ahead of you, the last thing you want to think about is the possibility of an accident or theft. Motorcycle insurance gives you the peace of mind to enjoy your adventures by protecting you against the unexpected.
Choosing the right insurance policy is much like choosing the right bike. You want it to fit your needs and lifestyle, but at the same time be within your budget. Although most states require you to carry a minimum amount of liability coverage, other types of coverage are usually optional. Always ask your insurance representative about which laws apply in your state. The key to finding which coverage is best for you involves learning about all the options available.
LIABILITY INSURANCE
Liability insurance covers bodily injury and property damage that you may cause to other people involved in an accident. It doesn't cover you or your motorcycle. You should find out if your coverage includes Guest Passenger Liability, which provides protection in the event that a passenger is injured on the motorcycle. Whether or not this is included depends on the laws of your state and the company issuing the policy.
COLLISION INSURANCE
Collision insurance covers damage to your motorcycle if you are involved in an accident. Your insurance company pays for damages minus your deductible caused when you collide with another vehicle or object. Collision insurance usually covers the book value of the motorcycle before the loss occurred.
COMPREHENSIVE
Comprehensive coverage pays for damages caused by an event other than a collision, such as fire, theft, or vandalism. However, just like collision coverage, your insurance company will pay for damages minus your deductible and cover only the book value of the motorcycle.
Keep in mind most comprehensive and collision coverages will only cover the factory standard parts on your bike. If you decide to add on any additional optional accessories such as chrome parts, a custom paint job, trailers, or sidecars, you need to look into obtaining additional equipment coverage.
UNINSURED MOTORIST
Uninsured motorist coverage pays for medical treatment, lost wages and other damages if a driver who has no insurance hits you. If your uninsured motorist coverage includes property damage, then your cycle would also be covered under the same circumstances. Check with your insurance professional to see if property damage is included or needs to be purchased separately.
UNDERINSURED MOTORIST
Underinsured motorist coverage is similar to uninsured motorist coverage, except it applies when the party has lower coverage limits than you do and damages exceed the other party's limits.
Many factors can play a role in determining what your insurance costs will be such as being a graduate of a rider-training course, your age, your driving record, where you live and the type of motorcycle you own.
Tips for the cost-conscious rider:
- Many companies offer discounts from 10 to 15 percent on motorcycle insurance for graduates of training courses, such as the Motorcycle Safety Foundation (MSF) rider course. Riders under the age of 25, usually considered a higher risk, may see some savings by taking this course. It s also a good idea for cyclists who have already had accidents.
- Maintaining a good driving record with no violations will also help reduce your premiums.
- In many northern states, riders may save money by buying a "lay up" policy. With a lay up policy, all coverage except comprehensive is suspended during winter months.
- Find out what discounts your insurance representative offers. Multi bike discounts for those insuring more than one bike, organization discounts if you're a member of a motorcycle association, and mature rider discounts for experienced riders are just a few possibilities. Discounts can range anywhere from 10 to 20 percent depending on the company and your state. Availability and qualifications for discounts vary from company to company and state to state.
- Keep in mind that the type, style (such as a sports bike vs. a cruiser), age of the motorcycle, number of miles you drive a year and where you store your bike may also affect how much you pay for your premium.
Choose the agent or company that's right for you. If you already have car insurance, contact your insurer. Otherwise, ask friends, relatives, and co-workers where they bought their car or motorcycle insurance. Your local cycle shop may also have a company they refer customers to. Also check local motorcycle magazines or newspapers for insurance professionals advertising motorcycle insurance.
Source: Insurance Information Institute
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