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Discussion Starter · #1 ·
I know from reading past insurance posts that we have some insurance savvy members, here is my question:

Got my policy today from State Farm, they cover my 99 ST4 and the 06 Monster. They have both bikes covered with "Uninsured Motorist Bodily Injury 25,000/50,000" & "Underinsured Motorist Bodily Injury 25,000/50,000"

So, I mean if I am in an accident, how much bodily injury can I cause to someone in a car or a truck? I would save $104 plus change if I dropped those coverages. Should I? Is there an advantage to keeping them on motorcycles?

Thanx,
 

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Yes. That's to cover you should you get hit by someone who has no insurance. It only amounts to a very small portion of my policy, so I assume it's not too much on yours either. It's a good idea to have it, even though the chances are slim of using it, but that's what the insurance business is all about.
 

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Discussion Starter · #7 ·
Thanx guys, I knew that I'd get an answer from those who know more about insurance than me. So for $104.xx over a year it seems well worth keeping.


Thanx again,
 

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Drjones said:
Yerp. If you live in any State from Texas to California you'll have a higher chance of being hit by an "uninsured motorist" than if you're in Montana.
Not so fast, I live in Montana and we have a very high percentage of unisured drivers, trust me I was hit by one in my cage while sitting at a stop sign and got nothing. i was awarded a court judgment but when the bastard never paid the courts just sent it to collections. Still never received a cent.
 

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I'm going to chip in my 0.02, discounted by the fact that I had a couple of Maker's.

In short, Underinsured/Uninsured coverage pays for your damage in excess of the coverage of the driver who caused the accident, or if he left the scene of the accident.

However, your own collision coverage also covers the portion of that damage that is done to your bike, of course subject to your deductible for that coverage.

And your own medical insurance pays for your medical costs resulting from that collision, again subject to your medical coverage deductible.

So if you have (a) good medical coverage (with a low deductible), and (b) a low collision deductible, you may want to consider dropping the un/under-insured coverage, if you are willing to take the risk of bearing your own deductibles in case an un/under-insured driver hurts you and/or your bike. Another factor is that un/under-insured coverage often, but not always, covers you for your loss of ability to work. If you do not have such coverage provided by your employer (e.g. disability), this is a reason to obtain un/under-insured coverage. If you have such coverage through your employer, that portion is covered as well, and is not a reason to get separate un/under-insured coverage.

I chose to use the money I would have used to buy un/under-insured coverage to obtain excellent medical coverage through my employer, which minimizes my deductible to 0 in an emergency, and to 0 in a non-emergency at in-network providers. Basically, the costs of the two were a wash, but this way if I get hurt being drunk and doing something stupid (not on a bike), I get full coverage as well, with no deductible to worry about.

And my employer pays for disability insurance, which pays me 80% of my salary if I am unable to work due to an accident or illness. 80% is probably more than you can hope to get via litigation (after netting out litigation costs) or via recovery from your insurance, if litigation with the latter is probable to obtain such a payment.

In the end, you have to weigh your exposure against your other coverages and your aversion from or predilection for risk to determine your coverages. That should always be your equation for making insurance decisions. Good luck!
 
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pennyrobber said:
I think it also covers you in the case of a hit and run.
Only if the offending party is identified. I lost two vehicles to hit and runs. The first time I didn't have uninsured motorist's coverage, and the other (drunk) driver was, well, uninsured. The second time my car was totaled while parked as I was having dinner. I filed a claim but my insurance wouldn't pay unless I identified the other driver. That would have been a collision claim, and I didn't have collision for that particular car at the time.

-R.
 

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ducatizzy said:
If you had liability only, then why would your insurance cover your car? Liability is for the damage you cause to others...

If you had UI coverage and not liability only it would have covered you.
Exactly, I did not file a claim as my insurance company had nothing to do with it. I pressed charges and was awarded a judgment for the damage to my car but the courts were never able to collect any money.
 

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Most of what has been said regarding UM so far is true. Regarding hit and run, you must have at least a plate number so the insurance can subrogate (or try to) against the responsible party.

UMBI will take care of med expenses to yourself and/or your passenger. UMPD will take care of your collision deductible so you don't have to (if you don't have collision, UMPD is maxed at a state set limit - $3500.00 in CA).

Liability will take care of damage caused by you - and this does extend to your passenger (unless your ins co specifically excludes passenger liability - some of the crappier co's actually do this).

It depends on your situation, but in nearly every instance Liability is the most important coverage you have. I can think of few people who should carry less than 100/300 BI - and this is minimum. You're right - if you hit a car, the likelihood of causing $100k in med expenses to an individual is slim - your bike could hit a pedestrian, though - or your passenger could need the coverage. Worst case (to your wallet), you don't kill someone but you maim them. If they can't work, they're dependent upon your income. And they'll get it.

This post is going to get long - if there's interest, I can start a thread explaining each coverage and its importance. It kills me to see people with low deductibles and inadequate liability - what's more important, a $10k bike or 50% of your income for the next 20 years + every asset that isn't nailed down in a retirement account...?

I guess you can PM me with questions if you like. My licenses end at the CA border, but most info will transfer to other states. I was with a brokerage that handled about 130 different companies before moving to a "preferred" company in captive agency. So, I know my sh1t and I'm happy to help if I can. I'm new here and you guys have already helped me - maybe this can be my payback to the board?
 

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One other points, collision covers repairs to your vehicle provided you are at fault. I wouldn't count on using it to cover damages by an uninsured motorist if you're not at fault. In any event, you also run a 99% chance of it showing up on your MVR as an at-fault accident which will will effect your rates etc for years.

Hell of a lot better to just get the UIM coverage.

Additionally, the limits of your UIM are what you can collect if you;re injured in an accident by an uninsured motorist. I carry 250/500k limits on my car, because if some unisured asshat puts me into a wheelchair, somebody's going to pay and I don't care if it's my insurance company.
 

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Rallye said:
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In the end, you have to weigh your exposure against your other coverages and your aversion from or predilection for risk to determine your coverages. That should always be your equation for making insurance decisions. Good luck!
Damn... that's a great work ins package... where to you work?
 

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Adam in MO said:
Damn... that's a great work ins package... where to you work?
If the employer is paying his disability insurance, it's likely short -term disability which typically pays a benefit for about 6 months. Better than a kick in the ass with a frozen boot, but not as good as getting a big lump sum if an uninsured motorist puts you in a wheelchair for life.
 
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