Insurance, and Why You Need More of it

[BRad704]

Originally Posted by 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

Not doubting you at all, but how does a college age rider get that good of a rate for THAT high coverage? 320/yr is $26/mo.

[dwright0723]

Originally Posted by BRad704

Not doubting you at all, but how does a college age rider get that good of a rate for THAT high coverage? 320/yr is $26/mo.

I think I may be a bit beyond the normal 'college age' . I'm 24 for another few days and my record is clean. From what I see though, 320/yr is high.. I guess that's right for someone that's only had their MC license for 3 weeks...

[tfkrocks]

Originally Posted by Driddle

An ambulance cost you 1.8k?!
Ouch.

I've had a $3k ambulance ride before. Critical care unit.

[Jiggles]

Remember the good ole days when ambulance rides were only $1000?

[choneofakind]

Originally Posted by BRad704

Not doubting you at all, but how does a college age rider get that good of a rate for THAT high coverage? 320/yr is $26/mo.

Depends highly on where you are and who's insuring you. I think that's the biggest factor.

I just upped my coverage with Progressive to 50/100/50 and 50/100 for uninsured/underinsured. I'm 20, have a clean record with both my car and bike, I took the MSF, and I'm paying 159 a year.

Progressive gives steep discounts after multiple claim-less years, but it was no where near 300/year when I started.

[lgk]

Originally Posted by Jiggles

Remember the good ole days when ambulance rides were only $1000?

I remember when it was $750 in the late nineties.
Inflation is a mofo.

[kazuox]

Originally Posted by Jiggles

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.

This is the part I'm a little fuzzy on. If you had a 250k un/under, wouldn't the full 250k kick in? Just because the other person paid 100k, it doesn't mean they are off the hook for the remainder of your medical expenses.

I thought the un/under was for an instance like this. If their insurance doesn't cover all your medical, they are "under-insured," correct? So if you did still have the 100k policy, why wouldn't that kick in on top of their 100k?

If this isn't how it works, I'll have to consider upping my policy to 250.

[Jiggles]

Originally Posted by kazuox

This is the part I'm a little fuzzy on. If you had a 250k un/under, wouldn't the full 250k kick in? Just because the other person paid 100k, it doesn't mean they are off the hook for the remainder of your medical expenses.

I thought the un/under was for an instance like this. If their insurance doesn't cover all your medical, they are "under-insured," correct? So if you did still have the 100k policy, why wouldn't that kick in on top of their 100k?

If this isn't how it works, I'll have to consider upping my policy to 250.

Since I had a 250k underinsured, that's the max that could be paid out per accident, even if the other company pays out, which they did. You don't get to add them together

[kazuox]

Originally Posted by Jiggles

Since I had a 250k underinsured, that's the max that could be paid out per accident, even if the other company pays out, which they did. You don't get to add them together

Oh alright. Thanks for pointing that out. Didn't realize the other person's insurance applied towards your per incident payout. I'll seriously consider upping it. Thanks again!

[caps]

First of all *slow clap*... I am a State Farm Agent (in Florida) and I'm absolutely amazed to see this thread and it's progression. You would be amazed how many people here (1 in 4) in Florida don't have insurance AT ALL! I had to learn the hard way about insurance through my accident and I'm glad to see you taking steps so others don't have to learn the same way.

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.

That's not bad, your age plays a HUGE factor.

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

Depending on your company look into dropping your limits (I know, but let me finish), and adding an umbrella policy.

Originally Posted by 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.

Here in Florida it's not required on Motorcycles if your wearing a helmet.

Originally Posted by Driddle

An ambulance cost you 1.8k?!
Ouch.

You should see what a helicoptor ride costs

Originally Posted by Jiggles

Since I had a 250k underinsured, that's the max that could be paid out per accident, even if the other company pays out, which they did. You don't get to add them together

Correct

[caps]

Originally Posted by mustang5.0

and get life ins too

AMEN!!! Most people have no idea how cheap it can be, I can write most people a $50K+ life policy for the price of one dinner a month.

[Jiggles]

I looked into an umbrella policy but they said I need to be a homeowner to do it. I've been trying to get my parents to look into it but they are lazy

[caps]

Originally Posted by Jiggles

I looked into an umbrella policy but they said I need to be a homeowner to do it. I've been trying to get my parents to look into it but they are lazy

Call another agent with the same company just to make sure that is actually a company policy. Here I could do it, there might be different.

[Jiggles]

I've tried two agents at AAA for it and they said I can't. I'm also stuck with $1000 deductibles on my bikes. I'd much prefer $200-$500 but it's a requirement for sportbikes. If the rates with AAA weren't so significantly cheaper than anywhere else is switch

[MFNcody]

Ok help me out here.
I called eagle insurance who I'm currently insured with and also AAA whom I've been considering switching to for quotes. Neither even offered a 'full coverage' policy for my bike because it's too old. I'm getting dollar figures for coverages that are pretty tiny compared to what we're talking about in this thread. Even if I go maximum on this stuff, it's still really small and just spikes up the cost. The rep I talked to from AAA told me a lot of people just forgo the medical/injury stuff as much as possible because their health insurance through their jobs and stuff provide sufficient coverage. I have health insurance through my job and I have sheet here on coverage and stuff but I'm not sure what exactly works in the scenario I incur huge medical bills in the event of an accident with an uninsured motorist and whatnot.



That's a quote I just got and I think that's with the maximum medical I can get. A lot of this went over my head so I'm trying to catch up. I'm going to ask the health insurance girl at my work about this stuff today but I think with what I'm looking at, I'm going to end up just going minimal on the vehicle insurance side of things as it doesn't make a huge difference one way or another except to my yearly cost.

[lgk]

the medical should be the max deductible/yr from your health insurance. usually 6-10k

the liability and under insured should be at least 150k/300k, property damage should be at least 50k for both.

the comprehensive/collision coverage might not be worth getting if the value of the bike is low.

eta:yea the medical is too high.
you're better off increasing the other coverages.

[250rr]

Originally Posted by anacron

There is such a thing as being overinsured especially when your trying to optimize your spending.

Couldn't agree more with this post. Wise man. Many people are under insured. On the other hand, there is such a thing as too much insurance as well.

[parox91]

I just got 300k un/under-insured with Geico - I now pay $46/month. Not too bad from $29.01

seriously... THANK YOU FOR POSTING THIS

[Jiggles]

[sze5003]

Good write up. For my 250 I had full coverage only 25/50 and 10k for any other damage and I was paying $36 a month. I'm going to be getting a 650r so I'll just keep comprehensive and up my liabilities..maybe go with a different provider. Philly sucks for insurance. This is with one accident that was not my fault (texting woman t boned my lancer after running a stop sign).

[Jiggles]

Is $36/mo too expensive?

[parox91]

nvm.

[rasta]

This is a great ****ing thread. I was only concerned with property damage and hadn't even considered the long term financial handicap of a significant accident. That'll do pig

[sze5003]

Originally Posted by Jiggles

Is $36/mo too expensive?

No not at all, but it was crappy coverage. Now that I have riding experience my next bike should not be so expensive to insure I hope. Bikes can be replaced but I know those who were in accidents, even those hit by cars who got screwed because the othe drivers just had liability. And its not like you can sue someone who doesn't have any assets.

[Jiggles]

Originally Posted by sze5003

No not at all, but it was crappy coverage. Now that I have riding experience my next bike should not be so expensive to insure I hope. Bikes can be replaced but I know those who were in accidents, even those hit by cars who got screwed because the othe drivers just had liability. And its not like you can sue someone who doesn't have any assets.

You should still get collision though, ask @tfkrocks

[sze5003]

I just read that thread..poor tfkrocks and the new 300 Philly rates are highest on mainly collision and comprehensive. I haven't even picked out what bike I will be buying again but I've avoided many plowings on my ninja 250 by just stopping at every light even if green for a bit, or slowing down enough to watch the other side. Yeah people honk and all but I don't care they are notorious here for just blowing through yellow and red lights.

In general I will be focusing more on getting the highest limits I can afford.

[Aggrotech]

damn people...you guys arent paying ****. Just turned 23 today, clean record and im payin $64/Month with progressive

[Alex]

Insurance rates are unintelligible. I was paying around $800/yr for 3 bikes, with max limits everywhere. I sold my ZX-10R and went down to two bikes, and the rate stayed almost exactly the same. I wrote off that BMW K1600GT, and knew that my rates would go up this year, and they did. My new rate is somewhere around $1200/yr.

But I just bought that new CRF250L, added it to the policy with the same limits and terms as the other two bikes, and now my new rate for the three bikes has dropped back down to $1000/yr.

[sze5003]

Originally Posted by Aggrotech

damn people...you guys arent paying ****. Just turned 23 today, clean record and im payin $64/Month with progressive

My parents used to live in Fresno, lots of open area there. Not sure why it costs a lot for you. Up here you would be paying close to 80-90 a month. I also thought once you turn 25 you get a big discount..nope not in my city at least.

[Aggrotech]

Originally Posted by sze5003

My parents used to live in Fresno, lots of open area there. Not sure why it costs a lot for you. Up here you would be paying close to 80-90 a month. I also thought once you turn 25 you get a big discount..nope not in my city at least.

you know its funny, got a letter in the mail recently from progressive saying i needed to renew everything, so i called up and did it. they said due to my exceptional "service" they would knock my insurance down..7cents!

Get my first bill after that phone call and guess wut? its 5dollars more! sure glad they knocked off that 7 cents!

[choneofakind]

Originally Posted by Alex

Insurance rates are unintelligible. I was paying around $800/yr for 3 bikes, with max limits everywhere. I sold my ZX-10R and went down to two bikes, and the rate stayed almost exactly the same. I wrote off that BMW K1600GT, and knew that my rates would go up this year, and they did. My new rate is somewhere around $1200/yr.

But I just bought that new CRF250L, added it to the policy with the same limits and terms as the other two bikes, and now my new rate for the three bikes has dropped back down to $1000/yr.

[lgk]

Dual sports are like the compact suvs when it comes to insurance.
If i added the full coverage for an additional klx250s, it'll only be an additional $20 a month.

The statistics, repair costs, totaling factors, and competitive pricing drives costs down.
You get the best of both worlds, have fun anywhere and save money.

Get one...

[Singh2jz]

Originally Posted by Jiggles

...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.

ATGATT and ATIATT

Bump..

[JSilva970]

Im 23, In College under my own plan (not my parents)

my current stats are
100/300/100 and for uninsured motorist is 100/300

I currently pay 450 a year. (also have 2 speeding tickets against me from my car)

Edit: I also go through Liberty Mutual Insurance

[caineroad]

Honestly shut up dude, I paid $1024 for my ninja liability, fire and theft. No collision. I have clean record and age 23, cheapest I found in the market. In our country we have no choice but to pay that much, that is the minimum (not including fire theft of course), you are now saying how much you want to pay MORE for insurance, this raises my emotion lol. If you are paying ONE THOUSAND bucks for your ninja in the USA, I give u a cookie.

[NevadaWolf]

That's not at all what I got out of this thread.

When I first got my Ninja, I went with the bare minimum required by the DMV and the state. When I totaled my bike at the track, I found (because I did not carry comp/collision) that my insurance would not cover the bike at all. Then I read Sean's experience and learned that the bare minimum plan I had was not enough to cover even a seemingly simple accident.

This thread forced me to look at my policy and the amount it covered. If the bare minimum had a high enough limit to cover the cost of medical from the initial response to the lengthy rehabilitation, then absolutely I would stay with it. However, since it does not, I adjusted my plan to be the most I could possibly afford.

Insurance plans are like gear, you get what you pay for. I look at this thread as a reminder to really really look at your policy and be fully aware of how much any sort of accident is going to cost you, then make sure you are paying enough to cover the real world expenses.

[Jiggles]

Originally Posted by caineroad

Honestly shut up dude, I paid $1024 for my ninja liability, fire and theft. No collision. I have clean record and age 23, cheapest I found in the market. In our country we have no choice but to pay that much, that is the minimum (not including fire theft of course), you are now saying how much you want to pay MORE for insurance, this raises my emotion lol. If you are paying ONE THOUSAND bucks for your ninja in the USA, I give u a cookie.

Okay okay we get it, Canada sucks, no need to get emotional about it

[Alex]

Originally Posted by caineroad

Honestly shut up dude, I paid $1024 for my ninja liability, fire and theft. No collision. I have clean record and age 23, cheapest I found in the market. In our country we have no choice but to pay that much, that is the minimum (not including fire theft of course), you are now saying how much you want to pay MORE for insurance, this raises my emotion lol. If you are paying ONE THOUSAND bucks for your ninja in the USA, I give u a cookie.

I think you've missed the point. The goal is always to pay as little as possible to get the appropriate coverage. This is done by figuring out what you need and shopping around. But the point of this thread is that many new (and old) riders really have no idea what insurance coverage they are paying for, and completely misunderstand under what circumstances it would do what for them. Obvious and common errors are assuming that damage is covered in an accident even if the policy doesn't include collision. Assuming that medical costs will be covered, when they aren't included. And then there's the ever-present error of underestimating the risk of an event (whether theft, accident, etc.), and simply looking for the cheapest price for borderline useless coverage.

[choneofakind]

Originally Posted by caineroad

Honestly shut up dude, I paid $1024 for my ninja liability, fire and theft. No collision. I have clean record and age 23, cheapest I found in the market. In our country we have no choice but to pay that much, that is the minimum (not including fire theft of course), you are now saying how much you want to pay MORE for insurance, this raises my emotion lol. If you are paying ONE THOUSAND bucks for your ninja in the USA, I give u a cookie.

Honestly shut up dude, () I read the thread and understand it's intent. You should too.

[broilmebk]

Originally Posted by JSilva970

Im 23, In College under my own plan (not my parents)

my current stats are
100/300/100 and for uninsured motorist is 100/300

I currently pay 450 a year. (also have 2 speeding tickets against me from my car)

Edit: I also go through Liberty Mutual Insurance

That is awesome. Good coverage, good price, good for you.
If only I was this lucky.