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SO, YOU THINK YOU ARE INSURED?

I can't begin to tell you how many riders I meet across the country with bikes worth $30,000 plus who are carrying their states minimum insurance. Many of these individuals own homes and businesses in addition to their bikes, cars and other toys. Why, you might wonder would they want to carry only minimum insurance? They are probably thinking that with the money they save on insurance they can buy more chrome accessories for their bikes. "Penny wise and pound foolish." An old maxim still rings true. These individuals are banking on the fact that they will not be in an accident. I hope they are not, but what happens to them if they are? It doesn't take much. Some person talking on their cell phone swerves into you at 55mph, or some unlicensed, or uninsured gypsy cab left turns you. Either case, you lose. You're alive, but unable to work for six months and you are left with injuries requiring two to three surgeries. You spend three weeks in the hospital and another six months in rehab. Let's stop and figure out what this "accident" has just cost you. Hospital-$3,000 to $5,000 per day; two medical doctors at about $750 per visit just to look in on you (probably while you are sleeping). Then there are radiological fees, nursing fees, medicine, etc. You are even charged for Band-Aids.

To compound the situation you have no health insurance. What, NO health insurance? You're in deep now! No-fault medical coverage is not available for motorcycles in New York State and likewise for most of the 50 states, but the really bad news is you're $30,000 plus custom scoot is nothing but a pile of twisted rubble in your driveway. Well, you did save money on insurance and as a result had no collision or comprehensive coverage. Now you need a new bike because your insurance is not paying for it. If you're lucky enough the driver of the car that hit you, or cut you off has been located and they are covered. The lack of no-fault coverage is good if you suffer what is more commonly referred to in the industry as "soft-tissue" [1]  injuries i.e., bulging discs, nerve impingement, "whiplash," etc., because you may still maintain an action against the vehicle that hit you without fear of dismissal by a judge because your injuries do not meet the threshold under the no-fault law. The lack of no-fault medical coverage, however, is devastating if you do not have private health insurance. You'll be treated like a third-class citizen in the hospital and most doctors won't even treat you without medical insurance. NOTE: Under the Federal EMTALA statute, otherwise known as the hospital "anti-dumping" statute, hospitals are prohibited from refusing to treat patients because of lack of ability to pay for services and a cause of action may be made for violation of this statute in the New York courts as well as in Federal court.

Back to the mounting debt. Without medical insurance you're facing $70,000 to $100,000 in medical bills over the past six months not to mention six months of loss of income because you haven't been able to work. Who's been paying your mortgage during this time? Yes, the absence of no-fault coverage is catastrophic to motorcyclists. So now you want to get your scooter fixed? Well, your bike was worth $8,000 book value, but because you didn't have collision or comprehensive coverage anyway, forget about going to your carrier. Now you have to ask the insurance company that insured the moron that hit you. Good luck! Assuming they place the majority of liability on their insured which rarely ever happens they still won't want to pay on anything over the book value of the bike. If you were smart enough to save all the receipts and have pictures you might be able to convince them that the bike was worth more than the book value. But $30,000, no way. You'll either have to accept what they are willing to give you, or sue them.

So now you're bringing a lawsuit for personal injuries and for the property damage to your bike. Sure hope you have another bike in your garage. Resolution of your suit could take anywhere from 1-3 years depending on the backlog of cases in your local courthouse.

There is an answer. Ever hear the phrase, "An ounce of prevention is worth a pound of cure"? It certainly rings true here. First, you must maintain health insurance if you are going to ride a motorcycle. If you talk to anyone who's been riding for any number of years he or she will all say the same thing? "Everybody goes down eventually." It's not "if," but "when." Scary thought, right? If you can't afford health insurance check with your insurance company to see if they have an option for no-fault coverage. It's not a lot of coverage, but might just cover your emergency room visit if you are lucky in that respect. The additional is minimum. If your present carrier does not offer it shop around, many do. No-fault will typically provide medical coverage to you irrespective of fault. NOTE: Most states do not have no-fault for motorcycles. Also, some insurance companies will provide as part of your mandatory coverage or as an additional expense and rider they may offer emergency medical riders for a nominal fee. The coverage is usually in the $2,000 to $3,000 range. Unless you are seriously injured this type of coverage will normally be enough to cover a trip to the local ER. NOTE: You must ask for this coverage, as your local agent will not volunteer it. Most of the time they don't even think about it and remember that insurance companies do not normally like to write additional coverage policies, though they all have them available.

Secondly, you must protect yourself against the uninsured or underinsured driver. I can't stress enough the importance of carrying enough insurance to protect you and your family. I would recommend a minimum of 100/300 for a policy with a 100/300 on the supplemental (SUM) under/uninsured portion of the policy. This type of policy affords coverage of $100,000 per incident up to a cumulative total of $300,000 for additional claimants. What SUM coverage does is allow you to make claim against the difference between your policy and the policy of the driver or owner that hit you. In other words, if a car with $25,000 in coverage hits and injures you, if you have a $100/300 policy you will have the benefit of making claim against your own policy in the amount of $75,000. The same holds true if the other driver is uninsured.

Unfortunately, most of the companies offering low rates only offer policies of 100/300.

Do yourself a favor though, the $100,000 that will be available to you under your 100/300 policy does not go very far when you are unable to work, still in rehab and have incurred more than your policy in medical bills. You could increase your coverage to 300/500, but it would probably cost less to keep the 100/300 and take out an umbrella or excess policy for 1 million dollars. Usually, carriers require a minimum policy customarily 100/300 in order to maintain the umbrella. Check with your agent for costs and types of coverage. You may have to do some research and find a company offering more than 100/300 for primary coverage. the more primary coverage you have the more you can possibly collect from your own policy when you need to. Check to make sure and if need be check with the carrier you have for your home insurance. You can probably get a larger policy. Do yourself a favor and increase your coverage! You'll not only feel more secure, but will be secure in the unfortunate event you are injured in an accident. Be sure to check to make sure the umbrella will cover you with a SUM claim. Also, I can tell you from personal experience, both for myself and clients that while your insurance company will gladly pay for the damage to your bike if you have collision/comprehensive coverage they will not rush to pay for a SUM claim for personal injuries. You will most likely have to take them to arbitration for that. They are all notorious for that! Call me, John at BIKR LAW to help with that claim; 1-877-BIKR LAW, 1-877-245-7529, or e-mail me john@bikrlaw.com

I hope the content of this article has proved informative and, if nothing else, has caused each of you to at least check your present coverage and if need be, increase it so it can work for you. Remember, don't be "Penny wise and pound foolish." Feel free to call me, or e-mail me with any questions. RIDE SAFE AND RIDE SMART!

John D. Randazzo, Esq.
1-877-BIKR LAW
(1-877-245-7529)
john@bikrlaw.com
www.bikrlaw.com

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[1] "soft-tissue" is a term commonly referring to injuries other than broken bones, scarring, and any injury, which would significantly impair a body use or function, on a daily basis. These injuries are what are termed "serious injuries" under the no-fault threshold. Be sure however, to check with your local Bikr Law attorney as the definition of "serious injury" may vary from state to state.