Car and motorcycle insurance overview
Casualty or Liability Insurance is also known as Bodily Injury or Property Damage Insurance.
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This is the portion you, the insured, have to pay to contribute to the payment of a loss. A higher deductible should lower your premium. Ask your agent to quote you for a low and a high deductible.
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This is the person named in the insurance contract that will be driving the motorcycle or vehicle. Normally the spouse of the named insured who also lives at the same address will also be covered. This is one reason to keep your address current on your driver's license.
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Coverage for the theft of your vehicle. Leaving keys in the ignition or easily available may be a reason for your insurance company to deny a claim. Alarms often will lower your insurance premiums.
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Medical bills can be paid by many different sources depending on the law of the State and the order of priority. Ask your agent how your medical bills are paid whether or not you have health insurance and whether or not the "at fault" driver is known or unknown.
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Is coverage on your vehicle that will pay you for your pain and suffering if the at fault driver does not have insurance to pay. In some states this coverage may cover your motorcycle/auto as well.
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Is coverage you purchase that pays you if the at fault driver did not have enough insurance to cover the damage that he did. Again, this is typically for your pain and suffering and injuries.
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Property damage coverage that waives your deductible.
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When there is a loss, as an insured you have certain duties to the insurance company. For example, you must notify them promptly; you may be required to cooperate with the company in its investigation and adjustment of the claim; you must promptly submit any medical bills; they may have a right to examine you under oath (this should be done with your attorney present); and they may have a right to ask you to sign authorizations for medical records.
No-fault Insurance
Many states adopted a no-fault law that covers motor vehicle accidents. A no-fault law is just that: it mandates that certain bills and damages must be paid by your own insurance company, no matter whose fault the accident was. Before no-fault, the courts were clogged with all types of cases where individuals were suing other drivers for damage done to their vehicle, their medical bills, wage loss, etc. Many no-fault states require your own insurance company pay for such things as medical bills not covered by health insurance, damage to the vehicle, and wage loss. These states normally still preserve the right to sue the at fault driver for your pain and suffering.
This information is not meant to be a complete discussion of all the technical points relating to auto/cycle insurance. It is written in the sincere hope of helping you provide the knowledge to protect you and your family. Contact your local insurance agent to review your coverage and learn how your state's law affects your insurance.
