Comparing insurance policies:
Insurance companies advertise that they can beat any other insurance company's rates. What you needto know is what coverage you need in order to compare rates and I will try to answer that question in this article.
So, a topic near and dear to all of our hearts, insurance coverage. Well it may not be near and dear to your heart but it will be if you are in a crash, sorry to bring that up, but you have to be prepared for the worst.
Basic insurance coverage:
By law in Utah you must carry basic coverage. Basic motorcycle coverage in Utah is $25,000 liability coverage, and that is it! Liability coverage is that which pays if you injure another person in an accident – it does not pay for your injuries.
Underinsured insurance coverage:
Oftentimes the insurance agent will tell you that you can waive what are called underinsured and uninsured coverage. They tell you this so you do not have to pay as much. But what use is insurance coverage if it does not protect you? They also tell you to waive this coverage becasue it will make their coverage appear cheaper. You have to make sure you are comparing the same exact coverage between insurance dealers to get the best price. Do not waive this underinsured and uninsured coverage!
You do not want to waive underinsured coverage because the underinsured coverage will kick in if a negligent driver injures you when he does not have adequate coverage to pay for your injuries. Let's look at an example.
Let's say you are in an accident and becasue of your injuries you also have $100,000 in medical bills. Let's also assume that the driver that hit you only has a $25,000 liability policy. The offending driver's policy will pay you the $25,000 dollars. Out of that $25,000 you are left holding the bag for the $100,000 in medical bills plus having to cope with all of your injuries. This is true unless you have underinsured coverage. In this example, if you had underinsured coverage, you would turn to your own policy and make a claim becasue the driver that hit you was underinsred – he did not carry enough insurance coverage to pay for all of the harm he caused to you. Hopefully you have purchased enough underinsured coverage to pay all of your medical bills, lost wages, possible future lost wages, future medical bills and compensate you fairly for all of your pain.
Uninsured insurance coverage:
Uninsured coverage works the same way as underinsured coverage but kicks in when a negligent driver injures you but has no insurance coverage at all. If you have uninsured coverage you simply turn to your own uninsured policy and make a claim. This is important coverage because, according to the insurance council's latest statistics, about 15% of all drivers on the road in Utah carry no insurance whatsoever. The cost of the underinsured coverage is relatively cheap once you buy the basic $25,000 liability policy.
So, when you are comparing policies make sure you are comparing the same policies. Make sure the basic coverage is in place and have both underinsured and uninsured coverage. The minimum amount of coverage to buy for the ordinary Brother and Sister would be at least $250,000 but that depends on your own personal circumstances.
Who we are:
I am a motorcycle attorney practicing in Utah and have handled hundreds of motorcycle accident cases in Utah. I am happy to answer any questions you may have. You can reach me by calling 801-512-1398 or email to [email protected] You do not have to be in an accident to call. If you have questions about insurance or whatever I will be happy to speak with you – no obligation of course.
Take care out there Brothers & Sisters – Ride Safe – Ride Hard!
George Tait aka Spud.