Underinsured (UIM) and Uninsured (UM) Motorist Insurance. I know……you were hoping it was a leather jacket, but hear me out.
First, what is underinsured (UIM) and uninsured (UM) insurance?
UIM and UM insurance will pay for injuries such as medical expenses, pain and suffering and other damages that result from a motorcycle accident caused by a motorist who either has no insurance or too little insurance to cover all of your injuries.
“In other words, UM/UIM coverage protects YOU from all the crazies out there riding around with minimum policies.”
So if some kid in a 2000 Honda Civic rear-ends you at a red light while he’s taking a selfie-and your bike falls on your ankle you’ll be able to recover compensation from your own insurance company when his $15,000 minimum policy doesn’t cover the damage to you and your bike. Don’t end up behind the 8 balls after an accident, make sure you have the coverage before something happens.
So how much should insurance should I purchase?
I’d recommend a policy with at least $100,000/$300,000 liability (in case you hit someone else) and the same amount of UM/UIM coverage (in case someone hits you). Now you may be thinking to yourself, “I ride a motorcycle, if I hit someone they won’t get injured, I’ll probably be the one injured so why not just buy UIM/UM coverage at $100,000 and put liability at $15,000.” I’ve thought the same thing and insurance companies will NOT let you do this. They know it’s too good a deal and they would go bankrupt[1] paying UIM/UM claims.
Beware! Your insurance company WILL allow you to “write down” your UIM/UM coverage. “Writing down” UIM/UM coverage simply is when you purchase an insurance policy with more liability coverage than UM/UIM coverage. Your insurance agent may offer this in an attempt to save a couple bucks. Don’t do it! The insurance carrier will request that you sign a form therefore “writing down” your coverage. Do not do it! As a matter of fact, anytime someone asks you to sign anything think twice about it, especially an insurance company. That’s just a good life practice to have.
How much does it cost?
Not much, you’d really be surprised. Shop around the usual insurance companies and compare their rates. A 100k/300k policy with matching UM/UIM can be had for as little as $500 a year. Which is probably about the same amount you spent on that leather jacket….
If you have any questions about UM/UIM coverage and how to protect yourself in the event of a motorcycle accident call Troy R. Crichton, Esq. at (267) 225-3317 for a free consultation.
Why would they go bankrupt?
Since you directly contract with your own insurance company for UM/UIM coverage it is actually easier to get paid from your own insurance company than from the person who caused the accident. Your own insurance company has a duty to negotiate with you in “Good Faith”, if they fail to do so they can be sued for breaching their contract with you and open themselves up to punitive measures. Stay tuned for a future posting on the details of Bad Faith claims.
