Insurance, and Why You Need More of it

[Jiggles]

It's come to my attention that insurance really isn't talked about enough on here. We only delve into how much are you paying and what are you getting? The unfortunate incident with @EthioKnight has sparked some discussion on it and I'd like to continue that discussion here.

I'm going to start off with myself and how I got to the coverage I have today. (If it's too long skip down to the giant E) When I bought my first bike, my sweet black 2011 Ninja 250, I went down to all state and I got minimum liability and comprehensive. I didn't want to pay more than $50/mo so that worked out well. And after all, how much damage could I possibly cause with a motorcycle? I even argued with the agent about the property damage part of the liability, I doubt my bike will ever even cause over $10,000 of damage to a car!

I later purchased my second ninja 250 that I planned to use as a project bike and maybe even learn how to stunt on it. I also switched over to AAA insurance. When I was talking to the agent I asked how much a 100/300/50 policy would be over the minimum. It was only a few dollars per month more, I also wanted to add uninsured/underinsured in case I was ever in an accident and the other person didn't have insurance. My agent was flabbergasted that a guy my age (20) was concerned about such things. He told me most young guys come in ask for the minimum and walk out. They didn't care about what was covered or what the cost of an accident could be, they just wanted the lowest rate possible.

I later purchased a 2012 ninja 650 and decided to up my insurance again to a 250/500/100 policy with uninsured/underinsured of the same amount. The reason being that motorcycle accidents could be very expensive and I wanted to be sure that if I was ever in one I would be financially covered. I wasn't concerned about causing that much damage to another party, but I was concerned about that much damage being caused to me and the other party not having enough insurance to cover it. 6 weeks later I was in a 25mph motorcycle accident that broke my femur and tore the cartilage in my wrist. The other party was at fault.

When I spoke with my lawyer he seemed happy that the other party had Mercury insurance since in his experience they tend to have higher policies and better payouts because of it. Her policy was a 100/300/50 and her insurance immediately paid out the 100k without a fight because my total claim was worth more than that. My hospital stay was $78,000 add in pain and suffering and it topped 100k easily. But I'm still going to doctors, physical therapy, MRIs, Xrays, and I may need more surgeries, those medical bills are going to go up.

I count myself lucky that I purchased the ninja 650 because without it I'd have stuck with my same policy of 100k and I'd be SOL right now. Instead, I am now filing through my underinsured to get the finances to pay my upcoming medical bills. Though my policy is a 250k, I'm only eligible for an additional 150k since 100k has already been paid out. If I had a 100k underinsured policy I would not be able to claim any more money.

Every day on ninjette I see people literally bragging about how little their insurance costs them each year. Happy about the fact that they are paying less than $100/yr for minimum liability. It's the equivalent of saying "Hey look! I only spent $20 on this half helmet!" We preach very heavily ATGATT but that doesn't just apply to your gear, it needs to apply to your insurance.

Alex's (EthioKnight) unfortunate accident makes this problem tangible. Here is a guy who suits up for every ride and preaches safety gear. A guy who gives ME **** for wearing a modular helmet because it is not as safe as a full face. A guy who any of us could look up to about how to protect ourselves when riding. The epitome of ATGATT. But he is also an example of how many of us don't take insurance seriously. He had a minimum liability policy. He was hit by a car with no insurance. He is now seriously injured in a hospital. When he wakes up, he will be financially screwed. He's going to have medical bills that will exceed that drivers assets. He's going to lose money from not working and he will find it extremely difficult to afford the future treatments that he will need. He is the unfortunate example of why ATGATT is not enough.

ATGATT can save your life while at the same time not having enough insurance can ruin it.

Insurance is not there to protect other people you come in contact with, its there to protect you. Remember my statement earlier? "How much damage could I possibly cause with a motorcycle?" I think this is the reason many of us do not get enough coverage, but we need to realize that us causing damage to others is not what we need to cover, we need to cover us being damaged by others. So many people drive around with minimum policies or no insurance at all. From my lawyers take a 100k policy is ALOT for the average driver. If someone hits you and they don't have the insurance or assets to cover your injuries, YOU ARE ****ED.

But you don't have to be, you can protect yourself just like you do with gear. Upgrading your liability and underinsured is inexpensive, if you cannot afford to do it you should not be riding a motorcycle, just like with gear. The very minimum you should have is a 100/300/50 (or similar) policy. But be aware, my 25mph crash EXCEEDED that amount, I highly recommend getting a 250/500/100 or even a 500k policy of course with uninusred/underinsured of the same amount. That $100 more per year can very well be the difference between stable finances and financial ruin.

There is no reason why you should not have at least a 100/300/50 policy with uninsured/underinsured. Instead of bragging about how little you are spending, brag about how much coverage you are getting.



As for comprehensive and collision, these are important but not nearly as much so as liability and uninsured/underinsured. At the most, failing to have these would cost you the value of your bike, failing to have adequate liability could cost you hundreds of thousands of dollars.

Uninsured/Underinsured also protects you against hit and run drivers. As long as there is proof of a hit and run (police reports, damage to your bike, witnesses) you will be covered. It does not cover you if you crash on your own.

The numbers of insurance policies mean the following, example 100/300/50. 100 means that up to $100,000 will be payed out to each person for bodily injury. 300 means that up to $300,000 will be payed out in total for the incident. 50 means that up to $50,000 will be payed out for property damages.

ATGATT and ATIATT

[Jono]

Like

[Old Lemon]

upgraded my insurace!

side note i did crash by my self and insurance gave me everything i needed for the repairs. dunno what that would fall under, comprehensive? anywho, whatever it does fall under you should get that as well

[ichibunkid.206]

Jigg's

I could not agree more with you... I've only been riding a year, the bike just recently turned 1k miles..

When I got my bike I thought the exact same way that you did... how much damage could I do on my 250, and as you stated The unfortunate incident with @EthioKnight has totally caused me to re-examine my own coverage.. luckily for me my company provides health insurance... but I also added additional AFLAC coverage just in case something were to happen to me while riding and forced me to be out of work.

I thought about what "if" something happened to me like EthioKnight... being single, and in a single income household... I'd be SOL, and up the creek at the same time... The discussion on the other thread has really caused me to re-think my coverage and to increase my upper limits...

[menikmati]

Loads of truth in that post, big respect to Jiggles.

I run with a 100/300/50 policy with 100/300 UM with comprehensive. However, I choose not to have collision coverage since the 250 is so cheap that I value myself and others more than the bike itself. It's easy to replace bikes but impossible to replace people.

I also go ATGATT with the exception of leather pants (I wear armored shorts and Dainese knee guards underneath my work uniform), it always surprises people when they find out I wear over $1k in gear and ride a $3k bike.

[Jiggles]

Originally Posted by Old Lemon

upgraded my insurace!

side note i did crash by my self and insurance gave me everything i needed for the repairs. dunno what that would fall under, comprehensive? anywho, whatever it does fall under you should get that as well

That would be collision.

And as a side note to people, if you are laying off the extra $100 for liability so that you can afford the extra $400 for collision then you should rethink that. The extra $100 on liability gives you tens or even hundreds of thousands of dollars of extra coverage for an injury while that $400 for collision will cover up to $4000 for your bike....

[Maielstrom]

Thank you for doing such an awesome write up! I'll be honest and say your description fits me perfect. ATGATT (riding around, it amazes me to see how many people ride with no gear, not even gloves!), but having the minimum policy figuring "how much damage can be done." I also never really understood the ins and outs of insurance too, so your post was very enlightening to someone like me. I'm just about at the end of my season now with a few days left (school year's starting up), but I certainly am going to look into upping my policy for next season.

[Boom King]

Good points. It's really worthwhile to educate yourself on your insurance options and weigh them very thoroughly.

[JustRidin]

Definitely a good post. Going to have to go get a quote now.

[nickjpass]

How does it work when you're riding someone else's bike?

[Jiggles]

Originally Posted by nickjpass

How does it work when you're riding someone else's bike?

Check with your insurance co. With mine as long as the rider has my permission to ride the bike then my insurance covers them

[nickjpass]

Who do you have (if you don't mind sharing)? I know that my dad's GEICO plan covers any one that drives his car. But is it the same for bikes? We haven't got insurance yet since the bike isn't even ride able lol

[Jiggles]

I have AAA, Idk about Geico they are way to expensive. They wanted $500/mo for just the 1000

[I'm Fred]

after reading this...I'm happy I live in Canada

[psych0hans]

I live in India, still have comprehensive insurance on my bike and multiple health insurance policies for myself... My bike is actually insured for more than what I paid for it, and my health insurance is about 50,000$. Which in India isn't bad at all... Like I said earlier, 100 and 300k claims are pretty much non existent here. If I'm ever in an accident, the insurance will cover the bike and health insurance is more than adequate to cover me. It also helps that my family is kind of well off...

[nautica]

Good post, Jiggles. People don't realize how much they'll really need until something comes up and they get screwed, especially uninsured. I had a car of mine get totalled a few years back by an uninsured motorist and I never saw a dime for my car and it was her fault. I ended up suing her and winning but still see no money since she doesn't have many assets. After that I bumped my insurance premiums up and added uninsured motorist to every policy. Better safe than sorry, and I'm sure we can all afford a couple extra bucks for the extra peace of mind.

[choneofakind]

Great post!!! I also purchased uninsured/underinsured for myself because i was aldo worried about getting hit by someone without insurance. I'm otherwise liability only i think. I should go check on that for next season, because the longer i stay with progressive, the less my insurance costs, so adding a few dollars here and there for more protection doesn't sound so bad.

Thanks for the insight here jiggles. ATIATT doesn't get preached enough
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[DennyV]

Im about to go up my coverage then... does it help that Im also on my dad's government health insurance? Anyways I just upped both to 100/300 and figured, to hell with it, Its not very likely I will cause an accident, but more likely someone will hit me, removing collision and upping UM and BI actually saved me money

[lgk]

Originally Posted by I'm Fred

after reading this...I'm happy I live in Canada

why?

[ai4px]

Originally Posted by lgk

why?

Because he is stastically less likely to have an accident and need insurance b/c they can only ride for 3 months of the year!!

I have also heard that in Canada, Moosehead is a beer. Down here in the states, it is a crime. lol.

Good write up Jiggles.

[Rudiger]

I have my insurance through State Farm. I paid the extra to have stacking, so my if my motorcycle insurance falls short the car insurance will kick in. The top payout is still 300k each accident tho. My under insured and uninsured is only 50/100, maybe i should up that?

[lgk]

Originally Posted by DennyV

Im about to go up my coverage then... does it help that Im also on my dad's government health insurance? Anyways I just upped both to 100/300 and figured, to hell with it, Its not very likely I will cause an accident, but more likely someone will hit me, removing collision and upping UM and BI actually saved me money

collision costs a lot since it pulls a lot of resources and takes a long time to settle claims.

on a bike, comprehensive and a full liability package is a better option if you can't afford full coverage.

if you can't afford full coverage with gap insurance you shouldn't buy a bike from the dealership. if you don't and crash, you'll be paying $500 plus the remaining balance on the loan for a wreckage...

[lgk]

Originally Posted by Rudiger

The top payout is still 300k each accident tho. My under insured and uninsured is only 50/100, maybe i should up that?

its a good idea, and the difference is like $30/year.

[Redgeneral]

Originally Posted by ai4px

Because he is stastically less likely to have an accident and need insurance b/c they can only ride for 3 months of the year!!

I have also heard that in Canada, Moosehead is a beer. Down here in the states, it is a crime. lol.

Good write up Jiggles.

Moosehead is a great beer btw.

Insurance is pretty expensive here though. But then again, I have 1mil Liability coverage, and 99% of the medical costs are covered by our taxes.

[Miles_Prower]

Originally Posted by lgk

why?

free health care? thats my guess anyways.
good post Jiggles. I'm (finally, for real this time) going to sit down and figure out the insurance situation, going to add UI coverage. It's sad that something terrible had to come to one of us on here to get people stirred up. People seem to get too complacent about things, all the time.

[lgk]

Originally Posted by Miles_Prower

free health care? thats my guess anyways.

it ain't free.
their middle and upper class pays for it dearly, and they steal our tech advances.

[Motofool]

Excellent post, Sean!

Thank you very much!

Maybe track junkies could explain how this work for accidents in a Track Day.

[Miles_Prower]

Originally Posted by lgk

it ain't free.
their middle and upper class pays for it dearly, and they steal our tech advances.

well of course..nothing is ever free.
just like the US isn't land of the free..but i'm not going to delve into that whole discussion haha.

[lgk]

Originally Posted by Miles_Prower

well of course..nothing is ever free.

You would be surprised at how people just dont get it...

They think everything comes from a combination of magic unicorns and liking turtles

[Miles_Prower]

Originally Posted by lgk

You would be surprised at how people just dont get it...

They think everything comes from a combination of magic unicorns and liking turtles

hahaha. it's scary sometimes how little people really pay attention to how things work, until they break!

[nycsteve]

Great write up jiggles! You touched on many points in which I was aware of, but I guess really didn't take seriously. I'm sure they're others on the same boat! Hearing about what Alex is going through, it saddens me that it would take such a thing as this to rethink my policy and even force me to take action and up my policy. I'm not in the 300/500/50 range, nor did I ever take the least coverage available (insane), but I did make some necessary changes.

I really think you should create a thread intended to be stickied (if not this one), in which you explain insurance for others as you did so clearly. It should have comments pertaining to others experience with accidents and payouts etc. Would be bitter sweet.

Again, great write up.

[Ninja250gurl]

Im not even sure what i have.. im checking and upgrading if need be.

Thanx for the info!!

[Legend]

Great post, hopefully people will start looking at insurance a little more closely and taking it more seriously. You get what you pay for.

Here in Canada we really don't have to pay for Healthcare, between that and my work benefits and other insurance medical coverage isn't an issue. That being said my insurance coverage is still $1 million across the board. I live in Ontario and we pay the highest insurance rates in the country and 1 million coverage is pretty much standard up here.

Please read Jiggles post and go call your insurance agent and get your policies updated where needed.

[EsrTek]

Good post/info (from Jiggles???)

Just upped mine to 100/300/50, the $30 difference in payments a month is well worth being covered decently, instead of being under insured myself!

[Ninja250gurl]

So i have 50/100/50 and no underinsured.. if i move it up to 100/500/50 and add 100 uninsured motorist to it, it goes up $500! Thats like $80/month more.. Does anyone know if my car insurance would kick in? Because im fully covered under my car insurance.. i have my bike and car seperate.

[Boom King]

I'm not sure about the other provinces but in Ontario, there are certain coverages that are mandatory by law with every insurance policy. Even with the most basic minimum coverage, you are still paying for uninsured motorist, liability (standard is $1 mill but you can request as low as $200K), and statutory accident benefits which include medical, rehab, attendant care, caregiver, non-earner and income replacement benefits. Now you can start to see why insurance can be so expensive here.

The poster who is from Montreal, Quebec will have different coverages there. I believe personal injury coverage is provided by the government which you pay for when you register/renew your vehicle and third party liability is obtained from the private market.

The point is though and to add to Jiggles' message, people need to take the time to educate themselves on what their insurance coverages/options are based on what's available to them and really consider them carefully.

[iplante]

Great post, Jiggles! I'd like your advice, though. I'm not sure about my insurance, I have underinsured/uninsured but would you think this is adequate?

Coverage Description Limits Premium

Bodily Injury Liability $100,000/300,000
and Property Damage Liability $100,000 16.50
Uninsured Motorists Bodily Injury $100,000/300,000 58.00
Underinsured Motorists Bodily Injury $100,000/300,000 16.00
Medical Expense $5,000 27.50
Comprehensive $500 Deductible 5.80
Collision $500 Deductible 16.90
Guest Passenger 4.90
Additional Equipment 11.40
MN Auto Theft Prevention Program Surcharge 1.00
Total Renewal Premium After Discounts $158.00

[Jono]

When I got my bike I read this articles about insurance. They are super helpful.

http://www.motorcycle.com/rider-safe...age-90356.html
http://www.motorcycle.com/rider-safe...age-90459.html
http://www.motorcycle.com/rider-safe...age-90297.html
http://www.motorcycle.com/rider-safe...ity-90226.html

[lgk]

Originally Posted by Ninja250gurl

So i have 50/100/50 and no underinsured.. if i move it up to 100/500/50 and add 100 uninsured motorist to it, it goes up $500! Thats like $80/month more.. Does anyone know if my car insurance would kick in? Because im fully covered under my car insurance.. i have my bike and car seperate.

keeping them separate is usually a good idea.
as far as i know, They don't combine unless they are on the same policy.

try moving 100/300/100.

and post a detailed quote, this way we can break down the pricing.

[DaBlue1]

Originally Posted by Ninja250gurl

So i have 50/100/50 and no underinsured.. if i move it up to 100/500/50 and add 100 uninsured motorist to it, it goes up $500! Thats like $80/month more.. Does anyone know if my car insurance would kick in? Because im fully covered under my car insurance.. i have my bike and car seperate.

Check with your insurance company to see if they offer Umbrella Insurance. Umbrella insurance is designed to give one added liability protection above and beyond the limits on homeowners, auto, and watercraft personal insurance policies. Umbrella protection is designed to “kick-in” when the liability on other current policies has been exhausted.

Liability insurance is the portion of a homeowners or auto policy that pays for expenses such as the injured persons medical bills, rehabilitative therapy, and lost wages due to the negligence of the at fault person. The liability portion of an insurance policy also covers a legal defense representative if the negligence would happen to land the at fault person in the court room. After adding up all of the medical expenses for the injured and the legal fees of the negligent person, the standard liability in one’s homeowners or auto policy is often not enough.