Insurance, and Why You Need More of it

[psych0hans]

Originally Posted by xaple

Is it because I'm 18 that everyone wants in the upwards of $1,000 without any collision coverage?

The bare minimum people still want $700 from me.

Yes once you cross 25 insurance will be a LOT cheaper.. But you gotta suffer till then...

[quicklooker]

Because of this thread I raised my insurance coverage...

[lgk]

Originally Posted by quicklooker

Because of this thread I raised my insurance coverage...

excellent

[Joshorilla]

I have ALL THE INSURANCE!

[Miles_Prower]

Originally Posted by NevadaWolf

By reading others experiences, it's all in what you were doing and why. Continuing education on proper motorcycle handling with classroom sessions and ride time to practice lessons is what I told my original insurance company. I plan on living in the C group as long as I can!

With State Farm, I've read as long as its not a timed competition with prizes of any sort they tend to cover accidents out there.

This is many months later, but I switched to state farm and asked my agent about this. She said they do not cover closed circuit AT ALL. No track days, no on track "schools," nothing. I guess they reevaluated their losses? No clue.

[broilmebk]

Originally Posted by quicklooker

Because of this thread I raised my insurance coverage...

[NevadaWolf]

ACK! :calling State Farm now:
Ok, my rep says that the only time a closed course is excluded is when it is used for racing, not training/education. She spoke with the underwriter and they both dug through the motorcycle policy. Racing=no, training=yes.

I explained that track days (used that term) is meant for improving control of the bike on a closed course. We go to a classroom session and them apply those skills on the track. Since I'm in C group, that's all I know to pass on. Not sure if moving up through B or A might change things. But I stressed no racing, no competition, no prizes, no scoring, no timing, nothing that would indicate a race is taking place.

I'm going on faith I'm covered on the track since I believe I am well covered on the road (repeating myself but this thread did cause me to bump everything up to the limit I could afford-yay multicar discounts!)

[CynicalC]

TL;DR

Insurance costs $9 a month.

[Jiggles]

Don't think I ever had an update for this but if I'd had a 500k underinsured policy I would have gotten more money back from my accident. I've since switched all my bikes to 500k liability and underinsured and I also added medical payments since it was cheap and they will pay your deductibles/ambulance costs

[quicklooker]

I just now realized how old this thread was when I posted. Geez. I really need to stop doing that, but at the same time this thread's importance should not be underestimated!

Originally Posted by Jiggles

Don't think I ever had an update for this but if I'd had a 500k underinsured policy I would have gotten more money back from my accident. I've since switched all my bikes to 500k liability and underinsured and I also added medical payments since it was cheap and they will pay your deductibles/ambulance costs

So long story short, what was the overall payout/cost?

[JosueDG]

Great post! Got me re-evaluating my coverage and am upping it today to 100k/300k. I would up to the 300k/300k but Geico does not offer it :S

[Jiggles]

Originally Posted by quicklooker

So long story short, what was the overall payout/cost?

A lot!

[Jiggles]

Originally Posted by JosueDG

Great post! Got me re-evaluating my coverage and am upping it today to 100k/300k. I would up to the 300k/300k but Geico does not offer it :S

You have underinsured at the same limits right?

[quicklooker]

Originally Posted by Jiggles

A lot!

How is the leg? 100%?

[Jiggles]

Nope, maybe 75% at this point

[Xoulrath]

Originally Posted by quicklooker

How is the leg? 100%?

With accidents that severe, 100% is typically unheard of. I'm not saying it couldn't happen, but more than likey, there will be some type of permanent loss.

I tore my right biceps tendon from the bone and I only had two months of being unable to use the arm after surgery, then another couple of months of PT, and I was rated at 95%. I think the doctor may have been wrong because it feels a lot closer to 90% to me. That was about five years ago. But hey, my arm still works so I'm good.

Back on topic: I recently decided to use an inusrance broker so I didn't have to do all the work anymore. I switched from Allstate to Foremost. I went from 100/300/100, 5K Med to 250/500/100, 10K Med plus better benefits like a towing allowance. I went from $137/month with Allstate to $710/year with Foremost.

Try a broker if you have access to one. It was a huge savings for me.

[JosueDG]

Originally Posted by Jiggles

You have underinsured at the same limits right?

Yes, I went with 100/300/50 and 100/300. My yearly only went up by about $280 from $150 to $439 - a small price to pay for some peace of mind.

[Jiggles]

[choneofakind]

Bump on this thread.

Took a look at my insurance (finally ) and I really was minimum coverage for liability and uninsured/underinsured only. I had the minimum required covered coverage in OH 12.5/25/7.5 12.5/25 for u/u coverage.

Once my new policy takes effect on the 5th, I'm going to double it to get 50/100/25 liability and 50/100 U/U for a minimal amount more. I'll look more into getting even more later on. This helps settle my mind a little, but I likely could still do double what I have.

Insurance people! Just as important as the gear you wear. Know your coverage and ride with what you're comfortable with.

[MFNcody]

Thanks for this thread! It is really making me think. I really feel it's b.s. that insurance is required by law for all vehicles on the road and there's no mechanism to see that the people that have it don't get screwed over because of those who don't when it actually matters but I guess the bottom line is it is what it is and you gotta take care of yourself.

[fishdip]

Originally Posted by lgk

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...

This is kind not true by law they have to put you back in the same place you started at be for the crash. You don't need gap you just need to be willing to fight with the company.

[lgk]

Originally Posted by fishdip

This is kind not true by law they have to put you back in the same place you started at be for the crash. You don't need gap you just need to be willing to fight with the company.

How much time and effort does it take when its your fault?
Imo, the $5/month is worth it in a lot of weird situations that newbs encounter with a new bike. Its the easiest way to get back into a new bike.

Getting the additional coverage is always a good idea for high risk vehicles.

[BIGREDIOWAN]

I've got full coverage on my 08 Ninja and it only costs me $9 a month. It wouldn't be that much of a benefit to go to liability insurance only IMO. My coverage is pretty high on all my vehicles and I review my insurance on a yearly basis and change things as needed, but I never drop my insurance coverage down.

[BRad704]

When saying things like this "100/300/100, 5K Med to 250/500/100, 10K Med"... What does each value represent? I am looking at my policy and for some reason I am just not "getting it"...

[JELY1990]

^http://www.compuquotes.com/auto-cove...00-300-50.html

"You've seen the series of numbers as part of your auto insurance before: 25/50/15, or perhaps 15/30/5. Have you ever wondered what that set of three numbers refers to? Those are the limits of liability on your car insurance policy.

Liability coverage is divided into three categories: bodily injury per person, bodily injury per accident, and property damage. These numbers represent the maximum dollar amounts your car insurance company pays on a claim when you are found at-fault in an accident that results in bodily injury and property damage.

How to read liability limits

If the limits of liability on your policy are set at 100/300/50, and you are found at-fault in an accident, your car insurance company is obligated to pay the claim accordingly:

Bodily injury per person: 100 refers to $100,000 and is the maximum amount to be paid for each person injured in the other vehicle in an accident. Should two people in the other vehicle sustain bodily injuries in the amounts of $90,000 and $100,000, these amounts would be fully covered by your car insurance policy because each amount is $100,000 or less. Any amount exceeding the limit is your responsibility as an out-of-pocket expense.
Bodily injury per accident: 300 or $300,000 equals the total amount that is paid toward bodily injury. The bodily injury amounts of $90,000 and $100,000 combined do not exceed $300,000, so you are fully covered.
Property damage: What if the vehicle driven by the other person is totaled and damages are estimated at $58,000? Because this amount is in excess of the liability limit for property damage, 50 or $50,000, you are obligated to pay the remaining $8,000 after your car insurance company pays the first $50,000 in property damage.

Minimum Coverage

Minimum liability coverage requirements are compulsory in most states and differ from state to state. However, minimum liability coverage amounts can be increased to ensure you have ample coverage to avoid paying out-of-pocket expenses. Though the minimum may satisfy state requirements, it may not be enough if a lawsuit is brought against you for damages that exceed the limits of your liability coverage. Without sufficient coverage everything you own is at risk--increasing the minimum can help avoid financial hardship."

[anacron]

Originally Posted by BRad704

When saying things like this "100/300/100, 5K Med to 250/500/100, 10K Med"... What does each value represent? I am looking at my policy and for some reason I am just not "getting it"...

100(person) /300(occurrence) /100(Property damage)
The three number represent the liability limits for a single accident.

Edit: @JELY1990 beat me to the punch and is more detailed so...

[BRad704]

Thanks guys. Looks like I am at 25/50/25 including the same for Uninsured. $500 deductibles. $518/yr premium.

I guess I need to start looking to up my coverages.

[anacron]

There is such a thing as being overinsured especially when your trying to optimize your spending. For example, I'm currently a student and it isn't feasible to up my premium. The type of motorcycle plays a big rolland that's a big win for the ninjette (lighter, more maneuverable, easy on the throttle).

However, if you've got the money and it'll give you peace of mind then it's totally worth it. Unfortunately I'm not even 25 so I have a couple of years of extra careful driving to look forward to.

Having said that, insurance should really be your last line of defense.

[BRad704]

I have to disagree. Insurance is JUST as vital as gear when you are in a major wreck, or even in a minor wreck with injuries (like Jiggles).

[Jiggles]

Originally Posted by anacron

There is such a thing as being overinsured especially when your trying to optimize your spending. For example, I'm currently a student and it isn't feasible to up my premium. The type of motorcycle plays a big rolland that's a big win for the ninjette (lighter, more maneuverable, easy on the throttle).

However, if you've got the money and it'll give you peace of mind then it's totally worth it. Unfortunately I'm not even 25 so I have a couple of years of extra careful driving to look forward to.

Having said that, insurance should really be your last line of defense.

Read as: I don't need no stinkin insurance! I'll just drive carefully, nothing can go wrong if I do that.

[NevadaWolf]

That's why to buy what you can afford. Yes, insurance is less vital than food or rent but more vital thanshorty levers or a new exhaust pipe. Being as careful as you can doesn't stop the drunk driver, the red light runner, or the illegal u-turner. And it's against their crappy coverage you are paying for.

[Graugaard]

pay a little over 1000$ a year on my 250. and can only agree.

[anacron]

Originally Posted by Jiggles

Read as: I don't need no stinkin insurance! I'll just drive carefully, nothing can go wrong if I do that.

Not really... I'm certainly not advocating an "I don't need insurance" stance. I have full coverage and plan to keep it that way. I'm just saying that the notion that you need the absolute maximum (minimum for deductibles) in every category is silly.

Circumstances, finances and riding style are different for everyone. I don't plan on increasing my coverage b/c I don't do freeway riding, don't need to commute and ride very early in the morning when there's little to no traffic.

So, its best to evaluate your own situation and pick a coverage policy that you're comfortable with.

[choneofakind]

Originally Posted by anacron

There is such a thing as being overinsured especially when your trying to optimize your spending. For example, I'm currently a student and it isn't feasible to up my premium. The type of motorcycle plays a big rolland that's a big win for the ninjette (lighter, more maneuverable, easy on the throttle).

However, if you've got the money and it'll give you peace of mind then it's totally worth it. Unfortunately I'm not even 25 so I have a couple of years of extra careful driving to look forward to.

Having said that, insurance should really be your last line of defense.

Like I said in my post above; insurance and riding gear are the same kind of thing. Wear/pay for whatever makes you comfortable. Just be sure to know what you're wearing/counting on.

however, fwiw, I'm also a full time student under 25. I found that the difference pricewise between bare-minimum coverage and semi-acceptable coverage is minimal.

[anacron]

Originally Posted by choneofakind

Like I said in my post above; insurance and riding gear are the same kind of thing. Wear/pay for whatever makes you comfortable. Just be sure to know what you're wearing/counting on.

however, fwiw, I'm also a full time student under 25. I found that the difference pricewise between bare-minimum coverage and semi-acceptable coverage is minimal.

Yup, my point exactly. I'm somewhere in the middle in terms of coverage and it just depends on your comfort-level and your style of riding.

[Obsidia]

I'll have to wait until my policy updates (I just had them change it this am), but right now I've got 50/100/50, full coverage with a 500 deductible, costs me $400 a year through State Farm. I'll be honest, I didn't even really think about increasing the insurance until I read this thread and posts from others. Had a not so lovely scare this am that had me calling my agent when I arrived at my office today.

The added protection added $108 to my yearly premium but I have better piece of mind now. When they update my numbers, I'll post better details but I should be better covered now especially if I get hit by someone with either no insurance or under insured.

I also confirmed with them that riding a motorcycle won't affect my life insurance so I'm covered there as well :-)

[dwright0723]

When I got my bike a few weeks ago, I was curious as to what kind of insurance I should carry on my bike, then I found this thread! Thanks Jiggles for the write up... I ended up getting 250/500/100, same coverages for uninsured/ underinsured, + 2.5k Medical payments (which I'm not really sure I need since I have health insurance?) and roadside assistance from AAA for $320/ Yr! They go thorough Progressive, and Progressive was 30 bucks cheaper, but Progressive wanted 2 lump sump payments, and AAA let me do monthly installments, which helps being that I am a broke college student

[Jiggles]

I ended up getting medical payments because they will pay your deductibles and ambulance ride. My deductible from my crash was $1.5k and the ambulance ride was $1.8k so I would have saved nearly 3k if I'd had medical payments

[Driddle]

Originally Posted by Jiggles

I ended up getting medical payments because they will pay your deductibles and ambulance ride. My deductible from my crash was $1.5k and the ambulance ride was $1.8k so I would have saved nearly 3k if I'd had medical payments

An ambulance cost you 1.8k?!
Ouch.

I have 50/100 liability, with uninsured at the same, medical at 3k, and $500 deductible for comp and collision

[dwright0723]

Originally Posted by Jiggles

I ended up getting medical payments because they will pay your deductibles and ambulance ride. My deductible from my crash was $1.5k and the ambulance ride was $1.8k so I would have saved nearly 3k if I'd had medical payments

Oh ok... Maybe I will just leave it be then...