ThumperX
Well-known member
- Joined
- Aug 26, 2007
- Location
- Off Elk Mtn
- Moto(s)
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Big Bore and little bore Thumpers
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- AMA #: 2817058
There have been a lot of insurance threads lately. This is a compilation of information dealing specifically with motorcycle insurance for California vehicles. Hope this helps to shed some understanding on a very complex subject.
WHAT YOU NEED TO KNOW
CA Requirements
This is what is required by the state of California, but keep in mind that you are liable for any damage to person or property that exceeds your coverage.
$15,000 for injury/death to one person
$30,000 for injury/death to more than one person
$5,000 for damage to property
something to note:
Off-highway vehicles
Special equipment vehicles
Trailers
Vehicles registered under a planned non-operation (PNO) status
are not required to prove financial responsibility.
DEFINITIONS
These are confusing to a lot of people and I often see gross misinformation posted regarding the different kinds of coverage available.
These are some of the most common types of coverage you can purchase for a motorcycle.
Liability Bodily Injury and Property
Uninsured/Under insured
Collision
Comprehensive
Medical Payments
Custom Parts and Equipment
Liability
Liability covers you in financial terms if you are found to be to blame for personal injuries or damages to a 3rd party. Liability policies are sold in "limit" increments. Limits are the maximum amount that your insurance company will pay out as a result of an at fault accident.
California requirements are $15,000/$30,000/$5,000.
It can be surprising how little a significant increase in limits may cost per year.
Note: Insurance does not absolve you from your financial responsibility it simply pays out the amount that you pay for when you buy your policy nor does Liability coverage offer protection to the rider or the the motorcycle being ridden. Think of Liability Coverage as minimizing your own personal legal risk.
Uninsured/Under Insured Motorist
Bodily Injury:
These coverages will protect you if you are in an accident and the other party involved has no or too little insurance to cover medical bills and expenses.
Property Damage:
Uninsured or Under insured property damage is usually a separate line and a separate charge from UI. In California the maximum payout is $3500
Note: CA State law prevents you from insuring yourself for more than you would pay out for injuring someone else. Therefore, your UMBI limits can only be as high as your Bodily Injury Liability Limits. Uninsured coverage does not pay for bodily injury or damages that you caused by yourself, however.
Collision
Collision coverage pays for damage to your motorcycle when you collide with another vehicle or object regardless of fault. In the event that damages to your bike exceed it's value collision coverage pays for the replacement based on values determined by a third party. Collision coverage is subject to a deductible (a pre-agreed upon dollar amount that you pay in the event of an accident.)
Note: You are always responsible for the deductible, even if the accident is not your fault. The deductible can be waived in the event the at fault party has insurance and their insurance company accepts liability. In the event the the at fault party is uninsured or under insured it may take years for you to recover your deductible. I always suggest that a person prices out different deductible, it can be quite a surprise at how little a smaller deductable might cost.
Comprehensive
Comprehensive coverage pays for damage to your motorcycle caused by an event other than a collision, such as fire, theft or vandalism. If you hit an animal, or if your bike is flooded or stolen, Comprehensive coverage will apply.
Note: As with Collision coverage a deductible does apply.
Medical Payments
Medical payments coverage can help cover the medical or funeral expenses of covered riders and passengers after an accident, regardless of fault.
Some carriers offer only a very minimum of coverage on motorcycle policies
Custom Parts and Equipment/ Accessory Coverage (CPE)
CPE covers permanently attached equipment, devices, accessories, enhancements and changes, other than those that the manufacturer originally installs, that alter the appearance or performance of the motorcycle. Some carriers actually include your gear in with the CPE.
Note: CPE coverage varies greatly between carriers. If you have a lot of modifications this may be something that you don't have on your policy but need to add.
Insurance is a big deal and represents big money. It is really important to know what you are purchasing and buy smart. Cheapest isn't always best.
Things to consider when purchasing insurance.
These are some random questions and certainly don't cover EVERYTHING, but if they get you thinking then that's great.
1. Know exactly what you need from your insurance before something happens.
2. Are you covered? With your current policy, if you borrow your friend's bike
and have an accident does your policy wrap to your friend's bike? Mine doesn't so I'm not going to ride my friend's bike.
3. If you loan your bike to a friend, is your bike covered? Mine is, so occasionally I'll loan it to somebody.
4. If you rent a bike does your policy wrap around the rental? Mine doesn't so when I rent I buy the extra coverage.
Hope this helps.
Be Advised:
This is in no way a legal document, it is for educational purposes only.
WHAT YOU NEED TO KNOW
CA Requirements
This is what is required by the state of California, but keep in mind that you are liable for any damage to person or property that exceeds your coverage.
$15,000 for injury/death to one person
$30,000 for injury/death to more than one person
$5,000 for damage to property
something to note:
Off-highway vehicles
Special equipment vehicles
Trailers
Vehicles registered under a planned non-operation (PNO) status
are not required to prove financial responsibility.
DEFINITIONS
These are confusing to a lot of people and I often see gross misinformation posted regarding the different kinds of coverage available.
These are some of the most common types of coverage you can purchase for a motorcycle.
Liability Bodily Injury and Property
Uninsured/Under insured
Collision
Comprehensive
Medical Payments
Custom Parts and Equipment
Liability
Liability covers you in financial terms if you are found to be to blame for personal injuries or damages to a 3rd party. Liability policies are sold in "limit" increments. Limits are the maximum amount that your insurance company will pay out as a result of an at fault accident.
California requirements are $15,000/$30,000/$5,000.
It can be surprising how little a significant increase in limits may cost per year.
Note: Insurance does not absolve you from your financial responsibility it simply pays out the amount that you pay for when you buy your policy nor does Liability coverage offer protection to the rider or the the motorcycle being ridden. Think of Liability Coverage as minimizing your own personal legal risk.
Uninsured/Under Insured Motorist
Bodily Injury:
These coverages will protect you if you are in an accident and the other party involved has no or too little insurance to cover medical bills and expenses.
Property Damage:
Uninsured or Under insured property damage is usually a separate line and a separate charge from UI. In California the maximum payout is $3500
Note: CA State law prevents you from insuring yourself for more than you would pay out for injuring someone else. Therefore, your UMBI limits can only be as high as your Bodily Injury Liability Limits. Uninsured coverage does not pay for bodily injury or damages that you caused by yourself, however.
Collision
Collision coverage pays for damage to your motorcycle when you collide with another vehicle or object regardless of fault. In the event that damages to your bike exceed it's value collision coverage pays for the replacement based on values determined by a third party. Collision coverage is subject to a deductible (a pre-agreed upon dollar amount that you pay in the event of an accident.)
Note: You are always responsible for the deductible, even if the accident is not your fault. The deductible can be waived in the event the at fault party has insurance and their insurance company accepts liability. In the event the the at fault party is uninsured or under insured it may take years for you to recover your deductible. I always suggest that a person prices out different deductible, it can be quite a surprise at how little a smaller deductable might cost.
Comprehensive
Comprehensive coverage pays for damage to your motorcycle caused by an event other than a collision, such as fire, theft or vandalism. If you hit an animal, or if your bike is flooded or stolen, Comprehensive coverage will apply.
Note: As with Collision coverage a deductible does apply.
Medical Payments
Medical payments coverage can help cover the medical or funeral expenses of covered riders and passengers after an accident, regardless of fault.
Some carriers offer only a very minimum of coverage on motorcycle policies
Custom Parts and Equipment/ Accessory Coverage (CPE)
CPE covers permanently attached equipment, devices, accessories, enhancements and changes, other than those that the manufacturer originally installs, that alter the appearance or performance of the motorcycle. Some carriers actually include your gear in with the CPE.
Note: CPE coverage varies greatly between carriers. If you have a lot of modifications this may be something that you don't have on your policy but need to add.
Insurance is a big deal and represents big money. It is really important to know what you are purchasing and buy smart. Cheapest isn't always best.
Things to consider when purchasing insurance.
These are some random questions and certainly don't cover EVERYTHING, but if they get you thinking then that's great.
1. Know exactly what you need from your insurance before something happens.
2. Are you covered? With your current policy, if you borrow your friend's bike
and have an accident does your policy wrap to your friend's bike? Mine doesn't so I'm not going to ride my friend's bike.
3. If you loan your bike to a friend, is your bike covered? Mine is, so occasionally I'll loan it to somebody.
4. If you rent a bike does your policy wrap around the rental? Mine doesn't so when I rent I buy the extra coverage.
Hope this helps.
Be Advised:
This is in no way a legal document, it is for educational purposes only.
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