Liability: Liability insurance pays the injured people in a wreck on behalf of the at-fault driver up to the amount of insurance the at-fault driver purchased. (Minimum of $25,000)
Uninsured: Uninsured insurance is also required by state law, in an amount equal to the amount of liability insurance. This pays in the event you are injured by an uninsured driver or an unknown driver that flees the scene.
Underinsured: Underinsured insurance is not required by state law, but it is the most important insurance a motorcyclist can have. It is strongly recommended that every rider carry this coverage on their motorcycle and every car in their household. Underinsured coverage pays in addition to the liability coverage of the driver that injures you if your damages exceed the liability limits of the at-fault driver. If the motorcycle involved in the wreck has underinsured coverage and the damages are large enough, the underinsured coverage from every vehicle in the household, including relatives living in the household, can be added together to greatly increase the amount of coverage available.
HOW DOES IT WORK…? HERE IS AN EXAMPLE
At-fault driver has $25,000 in liability insurance
Motorcycle has underinsured coverage of $100,000
Rider has 2 cars with underinsured coverage of $100,000 each
Rider’s son and daughter live with him and each have underinsured coverage of $50,000
Significant injuries, $200,000 in medical bills, long recovery, and months out of work resulting in $20,000 in lost wages.
Hypothetical case value is $500,000+
How much can we recover from insurance in our hypothetical case?
$25,000 from at-fault driver
$100,000 from motorcycle underinsured policy
$100,000 x 2 from two car underinsured policies
$50,000 from son’s underinsured policy
$50,000 from daughter’s underinsured policy
Total recovery = $425,000 **If the rider involved in our example case did not have underinsured coverage on the bike and on these cars in his/her household, the rider would only collect $25,000 from the at-fault driver, despite having $200,000 in medical bills. Contact your insurance agent today and make sure you have underinsured coverage on every vehicle and motorcycle in your household. It is up to us to protect ourselves from careless, underinsured drivers.