Insurance is something that people often buy because they need it, without ever really understanding how it works — that is, until they have to use it. There may unfortunately come a time when you are involved in a motorcycle accident and you will need to make an insurance claim. Before you ever get to that point (which, hopefully, you won’t) it is important that you understand the different types of insurance.
Liability insurance is what most would argue the most important type of motorcycle insurance one can carry, and I would agree. It is also important that your liability is the right amount.
Broken down, liability insurance is what covers another motorist’s bodily injury. This includes their medical bills, lost wages, as well as pain and suffering that you are responsible for, or “legally liable.” Additionally, it covers property damage, whether to the vehicle or other personal property. However, be cautious. The mere fact that you were involved in an accident in which the other motorist suffered an injury or damage doesn’t mean you are responsible for any or all of the losses – only the ones that are determined to be a result of your negligence. All in all, your liability insurance would pay for any legal judgments against you – up to the limit of your policy.
If your limit is less than the claim against you, it is likely that you will be personally responsible for additional payments. If you are carrying passengers, buy the same liability limits for them. If this is not possible, do not ride with passengers.
There are two principal types of liability insurance: single limit and split limit. A single limit policy means that your insurance company promises to pay up to a specified lump sum of money for all liability that results from a single accident. A split limit policy, however, is not quite as straightforward. There are three limits with a split limit policy: one for all the bodily injuries you cause to a single person, another for all the injuries you cause in a single accident involving more than one person, and a third for all property damage you cause in a single accident.
To help you better understand a split limit policy, let’s look at it this way: your policy provides for 25/50 coverage. That means that the maximum liability coverage for one person injured in an accident is $25,000, and the most your insurance company would pay for all injuries is $50,000, regardless of how many people were injured.
I hope that this blog has helped you to better understand the constituents of liability insurance. Insurance plays a vital role in how your motorcycle accident case turns out. Often, a personal injury attorney can help you to better understand insurance and dealing with it after an accident. If you feel you need help after an accident, contact us immediately and we would be glad to give it to you.