In 2023, the National Highway Traffic Safety Administration reported 40,990 traffic crash deaths, a slight decrease from previous years. Motorcycles remain at higher risk, with a death rate of 1.26 per 100 million vehicle miles traveled, according to the NHTSA research.
When you’re involved in a motorcycle accident, it can be challenging to figure out how to file an insurance claim. Motorcycle accident lawyer Mike McLachlan says those involved in an accident can experience severe injuries, face difficult questions regarding liability, and wonder how they will recover their losses. If you have been involved in an accident, let’s learn the common insurance terminologies so you can confidently handle the aftermath of an accident, making sure your rights and financial security are protected.
Coverage Types
When it comes to motorcycle accident insurance, it’s important to know about the different types of coverage. You need liability insurance to protect yourself financially if you cause an accident that injures or damages someone else. This insurance can help pay for things like medical bills, car repairs, and lawyer fees.
A Lakewood personal injury attorney says that uninsured or underinsured motorist coverage is also important because it protects you if you get into an accident with a driver who doesn’t have enough or any insurance at all. It can help pay for your hospital bills and motorcycle repairs.
Comprehensive coverage is another insurance type that helps with non-collision incidents like theft, vandalism, or natural disasters. Collision coverage, on the other hand, assists in repairing or replacing your motorcycle if it’s damaged in a crash.
Policy Limits
Your motorcycle accident insurance policy limits are the maximum amount your insurer will pay for covered expenses. Your insurance company sets policy limits on how much they’ll pay for motorcycle accident charges. These limits vary by coverage type.
To guarantee proper coverage, read your insurance carefully to understand these limits.
If your policy limits are insufficient, consider increasing them to avoid out-of-pocket costs. Higher coverage limits usually involve higher premiums, but they can provide more financial protection in a serious accident.
Deductibles
To manage motorcycle accident out-of-pocket costs, you need to understand insurance deductibles. A deductible is the amount you must pay before your insurance pays the rest. Lower-deductible insurance policies usually cost more, whereas higher-deductible policies cost less.
Choose wisely because your motorcycle accident deductible might dramatically affect your out-of-pocket spending.
Exclusions
Exclusions are specific scenarios or conditions that your insurance provider won’t cover. Common exclusions in motorcycle insurance policies typically include racing on the bike, using the motorcycle for hire or delivery purposes, intentional illegal acts, and riding while under the influence of drugs or alcohol. It’s important to thoroughly review your policy to understand what exclusions apply to your coverage.
If you engage in activities that are excluded from your policy and an accident occurs, your insurance provider may deny your claim, leaving you responsible for all costs. To ensure you have adequate coverage, discuss any concerns or questions about exclusions with your insurance agent.
Premiums
Understanding how motorcycle insurance premiums are calculated can help you make informed decisions when choosing coverage options. Premiums are the amount you pay for your insurance policy, and several factors influence how they’re determined.
The type of motorcycle you ride plays a significant role in setting your premium. More expensive or powerful bikes typically come with higher premiums due to the increased cost of repairs or replacement.
Your riding experience and driving record also affect your premium; riders with a history of accidents or traffic violations may face higher costs.
Where you live and how you store your motorcycle can also impact your premium. Areas with higher rates of theft or accidents may result in higher premiums.
Conclusion
Motorcycle accident insurance terminology doesn’t have to be confusing. Make informed decisions by understanding coverage types, policy limits, deductibles, exclusions, and rates. Review your policy to ensure you have enough coverage.
