Anyone who has dealt with a liability insurance company knows its no walk in the park. You would think it would be easy for them to pay. After all, California law requires all motorcycles and cars to maintain and provide proof of a liability insurance bond. Or at the very least, they need a minimum 15/30/5 insurance when their vehicle is on the roads.
The only exception is a motor scooter. Like any other car, if it is leased or financed, a cyclist may also have to buy additional comprehensive and collision coverage. But that covers any total loss of the vehicle to the true owner. (in this case, the bank, finance or leasing company).
Ehline Law answers the frequently asked questions about motorcycle insurance coverage.
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Some dealers get a kick back from insurance companies or even have their in-house. We recommend replacing any temporary binders. In fact, the smart move is to buy insurance from a reputable company. Preferably one vetted by the Department of Insurance of California. The better the coverage, the best your chances are of fewer hassles. Getting paid fast is what we all want.
Paying the $10,000 insurance bond is also an option. But most riders do not choose this route. Dealer and cheaper policies may not even meet the legal requirements. So it is critical to use services like Yelp!, and Google Places to read the reviews. Also, ask friends and comparison shop before you commit.
The idea behind the law mandating liability personal injury and PD insurance was to make sure defendants could pay for any minimum harm they caused. So that way, the person or their property was paid off. But this is not always enough money.
Normally that is found under the terms of the contract. The policy will also cover the person if they are operating someone's bike with no coverage. Thus, it “follows the rider.” Get it? But once the coverage is used up that's it. Now, the personal assets of the rider or other driver are at risk. So they could lose their home and have wages garnished.
Typically this would be bundled with the other coverage. So your policy would cover collision insurance, med-pay, UM/UIM, etc. Also, if you purchase it separately, it would have its deductible.
The standard deductible is around $500. The more risk of paying a higher deductible, the less the overall monthly premiums to the insured. The less the deductible, the more the insured has to pay per month, for example.
Also, if they have zero coverage, then UM will cover costs incurred by permissive users. This insurance comes into to play in a hit-and-run accident. But many insurance companies require proof the other vehicle made contact with the bike. Otherwise, no UM becomes available. So if you lose control as a result of being cut off, for example, some insurance companies will not take on that dark of a risk.
Our job is to help victims of serious accidents get money for pain, suffering and other special damages like lost earnings and compensation for their busted bikes. Call for a no risk consultation. Speak to a contingency fee insurance bad faith lawyer at Ehline Law. (213) 596-9642.
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