By: Andrew S. Prince, Esq.
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Choosing the right insurance policy is much like choosing the right bike. You want it to fit your needs and lifestyle, but, at the same time, be within your budget. Although most states require you to carry a minimum amount of liability coverage, other types of coverage are usually optional. In New Jersey, if you need to “cheap out” on your motorcycle insurance, you should not operate a motorcycle. The risk is to great of injury and thereafter lack of compensation.
Liability insurance covers bodily injury and property damage that you may cause to other people involved in an accident. It does not cover you or your motorcycle. It is uninsured and underinsurance courage (“UM and UIM”) that protects you. It is this endorsement on your policy you need to maximize. Anything less than $250,000 in UM/UIM coverage is foolish. Progressive Insurance will provide you $500,000 of this critical UM/UIM coverage.
Collision insurance covers damage to your motorcycle if you are involved in an accident. Your insurance company pays for damages, minus your deductible, caused when you collide with another vehicle or object. Collision insurance usually covers the book value of the motorcycle before the loss occurred.
Comprehensive coverage pays for damages caused by an event other than a collision, such as fire, theft or vandalism. However, just like collision coverage, your insurance company will pay for damages minus your deductible and cover only the book value of the motorcycle.
Keep in mind most comprehensive and collision coverages will only cover the factory standard parts on your bike. If you decided to add on any additional optional accessories such as chrome parts, a custom paint job, trailers or sidecars, you need to look into obtaining additional equipment coverage.
Uninsured motorist coverage (UM) pays for medical treatment, lost wages and other damages if a driver who has no insurance hits you. If your uninsured motorist coverage includes property damage, then your motorcycle would also be covered under the same circumstances. $250,000 minimum is what you should purchase. $500,000 from Progressive Insurance is better yet.
Underinsured motorist coverage (UIM) is similar to uninsured motorist coverage, except it applies when the other party has lower coverage limits than you do and your damages and injuries exceed the other party’s limits. See what I wrote above in “UM” section. It applies here.
Many factors can play a role in determining what your insurance costs will be, such as being a graduate of a rider-training course, your age, your driving record, where you live and the type of motorcycle you own. But under no circumstance, should you be looking to reduce your UM/UIM coverage.
If you already have car insurance, contact your insurer to see if the company has motorcycle insurance. But remember, it is all about the UM/UIM. It is everything. I only know of Progressive Insurance that provides $500,000 UM/UIM. Other companies provide up to $250,000. Yet every day, I see my clients badly injured and out of work and they have $100,000 or less of UM/UIM coverage and the person who hurt them has minimum ($15,000) coverage or none at all. Email me or fax me your declaration sheet on your motorcycle policy. Within minutes, I can guide you as to whether your policy is good.
You can contact me here at 1-800-TEAM-LAW (800) 832-6529 or (732) 388-5454. You can also email me at email@example.com or fax me at (732) 428-1509. I am here to help you.
Andrew S. Prince, Esq.
136 Central Avenue
Clark, NJ 07066
1 (800) 832-6529
(732) 388-8711 — Fax
Additional Offices in New Jersey
Edison, East Brunswick, Jersey City, Newark, Orange, Perth Amboy, Westfield and West New York