Underinsured motorist coverage (UIM) pays for injuries such as medical expenses that result from an accident caused by a driver who has too little insurance to cover all of the injuries. In some states, UIM is part of the UM coverage that covers UIM expenses for an individual and their passengers, including medical bills, lost wages, and pain and suffering.
State law in Texas requires a person to carry liability insurance. It does not require them to have UM and UIM coverage. It is a good idea to have that on their policy because so many drivers do not have insurance. Currently, more than 15 million licensed drivers in Texas do not have insurance. Studies show that more than two million people are driving without liability insurance.
It is crucial to structure insurance with UM and UIM to protect an individual and their family in the event of an accident with one of those drivers. A skilled motorcycle accident lawyer could help you understand the various types of insurance plans. Reach out to learn about insurance coverage for motorcyclists in Fort Worth.
What Is Considered Full Coverage?
Full coverage could imply many different things. Full coverage is more coverage than liability insurance alone. It usually includes comprehensive coverage that covers everything that could happen to their motorcycle and damages other than an accident like plant or storm damage. Collision coverage covers damages to their vehicle if they caused the accident. Personal injury protection is sometimes included in full coverage, which covers a portion of the individual’s medical expenses if they caused the accident.
Contrary to what the name implies, full coverage does not mean the person never has to pay anything when an accident happens to or because of their motorcycle. As with all insurance policies, the motorcyclist is responsible for covering all costs until they meet their deductible. Every policy has limits, so it is advisable that one gets higher limits if that fits into their budget.
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Understanding Excess Or Umbrella Coverage
Umbrella insurance is a form of insurance that supplements a person’s basic liability policies such as their auto, home, business, or other policies. An umbrella liability policy covers a much higher limit and goes above and beyond claims directly related to their home, auto, or business.
The main purpose of an umbrella policy is to protect assets from an unforeseen event, such as a tragic accident in which the person is held responsible for damages or bodily injuries. If another party files a lawsuit against them, their umbrella coverage pays for the damages they are legally responsible for up to the policy limit. An umbrella policy provides additional coverage or excess liability above the limits of basic policies. It provides a broader form of coverage and helps cover legal fees, false arrests, libel, and slander.
It only takes one serious accident and a resulting lawsuit to put everything one owns at risk. One umbrella policy helps protect it all. It is recommended that everyone has an umbrella policy, including motorcyclists. Because motorcyclists are in accidents that result in significant injuries, having an umbrella policy in place is extra added protection.
An umbrella policy offers between $1,000,000 and $5,000,000 in liability coverage. It is important to take into consideration the individual’s net worth when choosing a coverage because they could be sued for everything they have. An umbrella policy is not a standalone policy. The insurance carrier requires that one meets certain qualifications, such as having an auto policy with a specific level of liability coverage in order to purchase umbrella insurance.
Examples of Umbrella Policies
A person’s car or home insurance is their first line of defense, even when they have an umbrella policy. For example, if someone is liable for $2,000,000 in a car accident and their auto insurance covers $500,00 liability, it covers the first $500,000. The umbrella policy covers the remaining $1,500,000 if the policy covers the incident, and they purchased that much coverage.
If someone is liable for $250,000 in an accident on their property and their homeowner’s insurance covers $300,000, their umbrella is not needed. If they insure a motorcycle, an ATV, a golf cart, a snowmobile, a motor home, or watercraft, their umbrella policy may provide additional liability coverage on top of those policies. The individual should check with their carrier to confirm their coverage on these types of vehicles.
A single umbrella policy may cover all of the family members and residents of the policy holder’s household. An umbrella policy potentially provides excess liability coverage on top of what their own policies provide. If someone is at fault for a serious accident, they need it. Umbrella insurance also gives them liability coverages when other policies do not. Examples include driving in a foreign country or renting a boat.
What Should Motorcyclists Look For In An Insurance Plan And Its Coverage?
A motorcyclist needs to have good insurance coverage in place. A standard motorcycle policy covers some portion of the costs associated with damages to their bike. It also provides compensation when they cause harm to another person, their property, or they have legal fees related to the accident. This is known as bodily injury and property damage liability. Motorcycle liability insurance covers the costs of liability claims and the legal fees up to the limits of their policy if they are at fault for an accident.
Minimum Insurance Coverage for Motorcyclists
Minimum liability coverage is the minimum amount for motor vehicle liability insurance coverage. In Texas, the minimum coverages for a motorcyclist are $30,000 for bodily injury or death of one person in one accident, $60,000 for bodily injury or death to two or more persons in one accident, and $25,000 for damage to or destruction of property of another in one accident.
A motorcyclist may add to those limits and customize their policy to cover a variety of things such as:
- Full replacement cost of the bike if it is totaled
- Comprehensive coverage for loss or damage from hail, weather, animals, and motorcycle theft
- Personal injury protection when they require hospitalization or medical care
- Uninsured/underinsured motorist coverage when the other driver is at fault in an accident and has inadequate or no insurance
The person could also add damage for the loss of their gear, damage to safety apparel like chaps and helmets, as well as upgrades and modifications to the bike such as transport trailers, sidecars, custom exhausts, and equipment.
Determining the Amount of Coverage
The amount of motorcycle insurance a person needs depends on the type of bike they own, how they plan to use it, their driving habits, and how frequently they drive. For example, if they ride a fast bike, a racing bike, or a super-sport motorcycle, their bike is more expensive to insure. Additionally, they may want to increase the amount of motorcycle liability insurance for their coverage for hospital and medical care.
Any bike with an extremely high horsepower-to-weight ratio is designed for speed and maneuverability. Riders tend to ride faster and weave between cars creating a greater risk of serious injuries as well as potential incidents that cause injuries to others. If someone plans on racing dirt bikes for fun, they should consider increasing their coverage. The close quarters racing and crowded tracks put them at greater risk of injuries, damage to their bike, an increased risk of causing injury to competitors, and damaging someone else’s equipment.
Motorcycle insurance requirements vary state by state. It is best to seek help from a motorcycle accident attorney who could help with crafting a solid policy that best protects them and their financial wellbeing.
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Let A Motorcycle Accident Attorney Help
It is important that you review your insurance policy with an experienced motorcycle accident attorney who can explain each aspect of coverage you want on the policy. Schedule a consultation to learn more about insurance coverage for motorcyclists in Fort Worth. Call today.
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