As a motorcycle owner, and just like an owner of any vehicle, you know that you are at risk of being in or causing an accident, which is why you have purchased insurance! Included in that insurance is liability coverage and it’s important that you know the limits set on your policy to make sure you’re not caught in never ending payments should an accident happen.
What will my liability coverage pay for?
Here is one scenario where liability coverage will come into play. Let’s say that you run a red light and accidentally hit the drivers side of a passing car, causing damage to the door. Next, the driver of the car goes to the emergency room because of a broken leg and requires medical treatment including surgery and rehabilitation. Then, the driver sues you because of the accident. Luckily – your liability coverage will pay for this. However, how MUCH your liability coverage will pay for in each of the situations above depends on the limits that are set for your policy.
How do motorcycle liability limits work?
Each motorcycle liability insurance policy has three parts:
Bodily injury for one person
Bodily injury for all persons involved
Each one of these components has a limit that depends on the type of coverage you choose.
For example, if you buy an insurance plan with 30/60/15 limit, your insurance company will pay up to $30,000 for one person’s medical treatment, up to $60,000 for all medical expenses combined, and up to $15,000 for any damage to property.
Let’s pretend, from the first situation mentioned above, that the car you crashed into is a foreign imported car and the damage to the door is more costly that you had imagined it would be – the door is dented, the frame is bent and major works needs to be done. The passenger, while thankfully she is okay, suffered from a broken leg and will need 4 weeks of rehabilitation work to walk normal again. Your bills may look something like this:
The total cost for car door repairs is $15,000
The cost for medical treatment is $80,000
Based on your 30/60/15 limit, Your property coverage is $15,000 and your bodily injury coverage is $60,000 — you would be responsible for the remaining $20,000 out of pocket.
Protect your pocket book and get some peach of mind
Check into your liability limits. If you think they are too low or if you are are unsure what the best amount is, talk with your agent for insight on adjusting your policies.
Accidents happen -everyone knows that- Just make sure your financial stability won’t be jeopardized because of it. You can always call your agent to double check on your policy, or you can also contact us (844-272-3420) to find the surest answers.
About Ryan Ruffcorn
Ryan grew up in Keokuk, graduated from Keokuk Senior High, and started his agency in Keokuk from scratch in 2003 after having worked for one of the largest international accounting firms, KPMG, LLP.
Ryan is hardworking; his loyal and trustworthy character is exemplified by the way he does business. He thoroughly enjoys helping clients through the insurance buying process to secure coverage for their most valuable assets.