You may never use that coverage. But if just one incident happens that you do not have protection by a certain type of coverage, it can cost you big time.

Bodily Injury/Property Damage Liability Insurance

Bodily injury liability is another type of motorcycle insurance 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. Most insurance experts recommend that you purchase as much as three times the minimum in this day of litigation and lawsuits.

If you are legally liable for an accident, your insurance will pay for the following:

      1. The cost to repair or replace damaged property

      2. Medical bills incurred by injured parties (may include coverage for guest passengers)

      3. Lost wages of injured parties

      4. Other damages you are legally obligated to pay as a result of an accident.

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.

Explanation of Bodily Injury and Property Damage Liability limits:

If you select 15/30/10 limits, your liability coverage will pay up to $15,000 per person and no more than $30,000 per accident for Bodily Injury and up to $10,000 per accident for Property Damage.

Guest Passenger Liability

This type of coverage provides protection for legal liability in the event that a guest passenger is injured on the insured motorcycle.

Underinsured/Uninsured Motorist

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.

Underinsured motorist coverage picks 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 (i.e.) $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.

Uninsured motorist coverage is the most important insurance you can buy. 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. Therefore, you have 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). I 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. WRONG!-- it pays for medical expenses, as well as loss of earnings, and pain and suffering.

It is a good idea to talk to your agent, or talk to several agents, to determine the best coverage that will provide the most protection against loss. You need to remember that different insurance companies have different exclusions to their insurance policies. The most common for motorcycle policies is the passenger exclusion, which means that your insurance company will not pay for injuries to, your passenger under your bodily injury liability coverage if you were at fault. There are other types of exclusions that, unless you ask, you may never know about until it is too late. Therefore, the most important thing you can do is to fully understand you entire coverage.

In a nutshell: Underinsured coverage is coverage that protects you if the person who hit you does not have enough insurance to cover all of your damages.

Uninsured coverage is coverage that protects you if the person who hit you does not have any insurance at all. This type of coverage covers your medical bills and any lost income you would incur while you are out of action.

NOTE: This coverage can be argued to be the most important coverage for a motorcycle rider and passenger. This is the only type of coverage that you can purchase that protects you. Most motorcycle insurance protects someone else or someone's property, or your bike for damage. This is the coverage you collect from if you are injured by, a person who has no insurance or a person who does not carry enough bodily iniury (BI) to cover your claim. This coverage can pay your medical bills, lost wages, pain and suffering, and even future damages.

What to buy: as much as you can afford. Riding without this coverage is about as dumb as riding without a helmet, in a bathing suit, with no shoes.

Collision/Comprehensive Coverage

Comprehensive and Collision coverage covers the cost to repair or replace your motorcycle if it is stolen or damaged in an accident, regardless of who is at fault. You select a deductible for each coverage, and once the deductible is met, the insurance company pays for the remaining damage. The higher the deductible the lower the premium. Hint: On smaller bikes the difference between deductibles is not as great as on larger more expensive models.

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. Note: Coverage extends only to the factory parts of your bike. If you get fancy and add anything extra--like nifty chrome accessories - additional coverage will be required for compensation.

Comprehensive coverage will pay for theft, fire and vandalism. This coverage is subject to a deductible.

The time to find out about coverage and exclusions on any policies is before you buy it. Before you sign anything, ask your insurance agent if there are any exclusions or notice requirements in the policy. Always ask to have all exclusions and notice requirements explained to you before you buy any insurance.

Medical Payments

Medical Payments 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.

Very few motorcycle riders buy this insurance. My guess is that they have great hospital coverage from their employer or purchased their own coverage and feel that this is a duplication of coverage. If you do not have hospital insurance buy as much of this coverage as you can afford.

Hint: If you do not have hospital insurance and are injured in an accident that is your fault this is the only coverage you will collect on for your medical expenses. If you carry your own medical and have a deductible or co-pay plan you need this coverage to fill in the gaps. Limits of $500.00 to $10,000.00 are available, a small deductible may apply varies by company.

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.

Roadside Assistance

Roadside Assistance coverage provides towing to the nearest qualified repair facility and necessary labor at the place of disablement when your motorcycle is disabled due to any of the following:

Mechanical or electrical breakdown

Dead battery

Flat tire

Lockout

Insufficient supply of fuel, oil, water or other fluids

Entrapment in snow, mud, water or sand within 100 feet of the roadway

Roadside Assistance is available 24 hours a day, 7 days a week.