Motorcycle Insurance Basics

Insurance Basics- Motorcycle Insurance  

Have you tried to read your insurance policy and just given up? Even your motorcycle policy can be very confusing! Let me make it a little easier for you with the coverage basics.

Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period.

Similar to Auto insurance, there are 2 types of coverage on your Motorcycle insurance policy; Coverage that protects the other party and coverage that protects you.

COVERAGE THAT PROTECTS THE OTHER PARTY

Bodily Injury Liability: This protects you from having to pay medical costs, lost income and funeral expenses of other people involved in an accident that is your fault.

Property Damage Liability: This protects you from paying for the repair or replacement of the other person’s property.

There is no deductible for liability coverage. You have many amount options for this coverage. The state minimum in Texas is $30,000/$60,000/$30,000. This means you are covered for $30,000 per person/$60,000 per accident and $30,000 for property damage. I would suggest going with higher liability limits than the state minimum. If you cause an accident and the liability claim is 75,000, if you have state minimum coverage, you will pay the additional $15,000 out of pocket! It is not expensive to increase your liability limits. Ask your agent to explain your options.

COVERAGE THAT PROTECTS YOU:

Uninsured/Underinsured Bodily Injury: This covers your injuries (or death) in case the responsible party has little or no insurance. It also covers anyone riding on your motorcycle.

Uninsured/Underinsured Damage: This covers damage to your motorcycle or property in case the responsible party has little or no insurance.  There is a state mandated $250 deductible in Texas for Uninsured/Underinsured motorist coverage.

Medical payments: This covers medical or funeral expenses if you or anyone on your motorcycle is injured in an accident.

Personal Injury payments: This covers medical or funeral expenses and possible lost wages if you or anyone riding on your motorcycle are injured in an accident.

Collision Coverage: This pays for damage to your motorcycle if you hit another car/motorcycle or something else (like a tree or a building).  You must pay a deductible. Deductible amounts determine the cost of this coverage. The higher the deductible, the lower the premium.

Comprehensive Coverage:  This pays for damage to your motorcycle if something other than a collision occurs. This could be fire, theft, hit by an animal (yes, the animal hit your motorcycle!) The same type of deductible rules apply to Comprehensive as they do to Collision. They are two different deductibles though. Comp coverage may also be listed as  Other than Collision.

Optional Coverages that protect your motorcycle:

            Towing: This pays for towing and some basic roadside assistance, depending on the carrier and towing option you choose.

            Trip Interruption: This pays for lodging, alternative transportation and food while the motorcycle is being repaired in the event of a breakdown or covered loss that is more than 100 miles from home.

            Rental Reimbursement: This pays for the cost of renting a car while yours is being repaired after an accident.

            Loan/Lease Gap Insurance: This pays the difference between what you owe and the total value of your motorcycle if it is totaled in a claim. 

            Accessory Coverage: This covers customer parts and equipment. You must have Collision and/or Comprehensive coverage as well.

             

While there are many factors in Motorcycle insurance, they do not have to overwhelm you. If you have any questions, please contact your agent. That is what they are there for. If they cannot answer your questions, please contact us. 

Have other questions? Need a quote?

    * Call us  877-987-8683  

    * Visit brockmanpremierins.com 

Home Insurance Basics

Back to Basics-Homeowners Insurance

   Have you tried to read your insurance policy and just given up? It can be very confusing! Our goal is to help you understand your insurance policy.

    Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period. You will get a new one for each policy period.

There are 2 basic types of coverage on your Home insurance policy: Coverage that protects you and coverage that protects the other party.

Coverage that protects you:

Coverage A- Dwelling Value:  The dwelling value is set at or above the estimated replacement cost of the home. This includes the cost to haul away debris, the materials and contractor’s overhead & profits. This coverage can be written at Actual Cash Value (the value to rebuild the home minus depreciation based on the age of the home) or at Replacement Cost (value to rebuild the home at today’s quality and price). I suggest Replacement Cost policies. Many people ask us to match the coverage to what they bought the house for. Remember- Insurance is meant to make you whole again after a loss. The Dwelling Value isn't isn't based on how much it would cost to buy your home again. It is based on what your carrier is willing to pay out if you had to build your house from the ground up.

Coverage B- Other Structures: This covers buildings SEPARATE from the house, such as a pool, fence, storage shed, detached garage, etc. This usually defaults at 10% dwelling value. It can be lowered to save money or raised to increase coverage.

Coverage C- Personal Property:  Covers your contents of the home. This can also be written at ACV or Replacement cost coverage. If you have a total loss to the home, the carrier will write you a check for the total personal property, regardless of whether you have RC or ACV coverage. If you have a partial loss such as a small fire or theft, they will only give you the coverage you have paid for; meaning if you have ACV coverage, your 8 year old TV will only be covered for the value of an 8 year old TV. If you have Replacement Cost, your coverage will cover the cost of a new TV.

Loss of Use:  This provides reimbursement for reasonable increases in living expenses (such as a hotel room or apt) due to a covered loss, if your home is uninhabitable. There is usually a set amount as well as a set time period. Once the home is inhabitable again, you are expected to move back in (Regardless of how much you are enjoying the hotel!)

Deductibles:  This is the amount you pay out of pocket when you file a claim for a covered loss. There are 2 main types of deductibles;

            Wind/Hail Deductible: This covers your home in the case of high winds or hails, usually seen during severe storms. 

            All Other Perils Deductible: This covers your home for the remaining perils listed in your policy, such as fire or theft. Keep in mind, home insurance policies do not cover floods. You will have to buy a separate policy for flood insurance.

Coverage that protects the other party:

Personal Liability: This covers you if someone is injured on your property due to your negligence.  It can help pay for their injuries and any legal costs. We had a neighbors dog bite a visiting child once. The child is fine, but there were some medical costs and their Liability on their Home Insurance policy paid it in full.

Medical Payments: This will provide reasonable and necessary medical expenses to a guest on your property injured in an accident. If the UPS guy trips and falls and needs medical attention, this would cover minor needs, like ER and stitches.

Insurance coverage can be confusing, but it doesn't have to be!


Have other questions? Need a quote?

    * Call us  877-987-8683  

    * Visit brockmanpremierins.com