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Insurance 101: What You Need To Know

thedub said:
What are the advantages/disadvantages of electing a Combined Single Limit versus Split Limits?
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Let’s say you have coverage of 100/300/50 split. This means that $100,000 liability is for each person, $300,000 liability for each accident, and $50,000 for any property damages. Combined Single Limit (CSL) Coverage is a combination of all the limits of liability coverage. There is no split between the personal injury and personal property damage. A combined single limit is exactly what the name implies; it is combined into one single limit. $300,000.00 total coverage for example.

Why the CSL gives better coverage.

So you get into an accident with the above coverage will you be fully covered? Maybe

So you had an accident which caused $250,000 in damages. Your covered right?

With your split limit.

Let’s say three people were injured in the accident (one at 15k, one for 25k and the third for 150k) and 60k in property damage. You would think you would be covered with 300k total accident coverage, but you are not fully covered. You would be liable for $60k in payments.
This is because the sub-limits of $100,000 medical per person and $50,000 for property have been surpassed.

With CSL you would be totally covered because you have 300k in total coverage (not split into categories/different liability limits)
The above is very basic and there are many more options to make sure you are covered correctly.
 
So CSL is better; which I guess makes sense since it seems to be more expensive.
 
Financing a Bike --> gap insurance

shouldnthave said:
What about 'gap insurance'? What does that fall under, or is it it's own thing?

Gap insurance can only be purchased within set time limits at or minimally after purchasing a bike with a loan. GET IT. It is insurance to cover the balance owed on the loan should you CRASH AND TOTAL your precious new bike. Otherwise you could be liable for the remaining loan balance and depreciation these days is not typically in your favor.

Hope that helps.
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BabyWeasel said:
shouldnthave said:
What about 'gap insurance'? What does that fall under, or is it it's own thing?

Gap insurance can only be purchased within set time limits at or minimally after purchasing a bike with a loan. GET IT. It is insurance to cover the balance owed on the loan should you CRASH AND TOTAL your precious new bike. Otherwise you could be liable for the remaining loan balance and depreciation these days is not typically in your favor.

Hope that helps.
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Not true, Gap insurance can be added on to a policy if your insurance company offers it.
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Poor Gwynne has answered so many insurance questions for me. SOOOO many.
 
Nothing to see here, but my ignorance! Woohoo!
 
Last edited:
OK I've read this thread from top to bottom and it contains some good information but based upon what I have found on the internet and what an insurance agent told me I am still confused about something.

Per the OP:

Liability Liability covers you in financial terms if you are found to be to blame for personal injuries or damages to a 3rd party.

Could someone clarify something for me; does Liability cover personal injuries to a passenger on the insured rider's motorcycle?

Thanks in advance.
 
it's covered under medical payment (mp) coverage and not under the bodily injury (bi) coverage...which is normally none to few $thousand...

jsolve said:
OK I've read this thread from top to bottom and it contains some good information but based upon what I have found on the internet and what an insurance agent told me I am still confused about something.

Per the OP:

Liability Liability covers you in financial terms if you are found to be to blame for personal injuries or damages to a 3rd party.

Could someone clarify something for me; does Liability cover personal injuries to a passenger on the insured rider's motorcycle?

Thanks in advance.
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Ahnh666 is correct. it would be covered under the MedPay section of the policy. You can pick the limit you would like on the policy. The passengers medical insurance would also cover this. keep in mind not all policies are the same. Some might exclude passenger liability unless you add it specifically. Make sure you ask your agent to be sure.
 
People think insurance in Canada is expensive, but considering what you get in terms of coverage, it really is a case of "you get what you pay for".

In Ontario (Canada), you rarely have to worry about suing anyone else's insurance. You claim from your own insurer's "Direct Compensation-Property Damage" coverage when you are not at fault (except in the case where the other driver cannot be identified, then you are SOL without collision coverage).

Some people argue this is "no fault" insurance where the industry scams you into higher rates. This is not true. Fault is still determined by rules and drivers and vehicles still rated.

Essentially, you pay for the coverage you want for yourself and your vehicle, not for someone else suing you. The rationale behind that for insurers is that everything evens out.

Then again, we are talking about a completely different insurance system altogether! Since Canadian residents have public health insurance, private insurers must offer "Accident Benefits", which can cover you for significant injuries. Versus here, you depend on your employer's benefit package to payout.

And further, it gets complicated when you travel to states where insurance is not mandatory. Who do you sue then?!

tl;dr -- don't pay for insurance just because you have to have it, make sure you have proper coverage. Why throw money away when you won't be properly covered.

I would be curious about the mentality of Americans in changing your insurance system! I'm sure you have some very strong opinions :)
 
Read this thread yesterday...increased my insurance coverage today. 500CL for liability, 500CL for uninsured/under insured.

I'm using Progressive and noticed that the max they will cover for Medical Payments is 25k per person - I'm assuming that is for when nobody is at fault but me and I go down. This would have been the most expensive coverage at about $500 per year for just a $25,000 pay out. I decided to self-insure for this amount. Says a lot about the actuarial aspects of this type of coverage...very high probability of a pay out, so very high cost insurance, with very small total coverage available.

Anyone aware of an insurance company that does better than this for Medical Payments coverage?
 
Mods - Please sticky this thread at the very tippy-top of General.

:thumbup
 
I'm a big, big fan of uninsured motorist coverage. It's also SUPER cheap to get on your cars, and also covers unidentified (hit & run) motorists. I had a tractor/trailer rig run over my car and drive off a few years back (never identified, never caught), and that $35/year check box on my policy paid for the car.

Can the insurance gurus here explain to me why uninsured motorist coverage for a motorcycle is many times the price of the same coverage for a car? I had to pass on it for my bike because it was going to be several hundred per year. Not worth it on a cheap bike. (I already pay for crazy expensive health insurance that would cover personal injury.)
 
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