Uninsured Motorist Coverage for Motorcyclists

Video Transcript:

Cindy Speaker: What is uninsured motorist coverage as it relates to motorcyclist?  That’s our topic for today’s episode of Main Street Law.  I’m Cindy Speaker.  My guest is Indiana motorcycle injury lawyer Randy Sevenish of Sevenish Law in Indianapolis, Indiana. So Randy, how are you today?

Randy Sevenish: I’m great Cindy how about yourself?

Cindy Speaker: Pretty good, thanks.  Well, Randy as I understand that knowing insurance coverage inside and out is an important part of a personal injury practice.  And I know there is a coverage called uninsured motorist coverage, but let me ask you this, what is uninsured motorist coverage and is it important for motorcyclist to carry?

Randy Sevenish: Well, I will tell, Cindy.  Uninsured motorist coverage or what we call UM coverage, for short, is one of the most overlooked and most important types if coverages that bikers can have, and aside from liability coverage that protects the biker when they themselves are at fault.  There’s just no other more important coverage for those riding motorcycles than uninsured motorist coverage, other than perhaps under insured coverage which is at least equally as important.  So to answer your question, UM coverage protects you and the people you love when a wrong doer is at fault and has no insurance and no assets or means to otherwise compensate you.  So in that, case you have in essence purchased insurance coverage before a crash for the uninsured driver.

Cindy Speaker: Okay.  Now, is that something that all motorcycles have, is it mandated by law?

Randy Sevenish: Well, amazingly, the answers are no and no.  Insurance agents in my state, at least, are required only to offer UM coverage but believe it or not, the law does not require it.  So bikers can choose not to have it by waiving the coverage in writing which is a very, very big mistake.  And in my practice in recent years I found a very troubling trend of bikers choosing not to have this very valuable form of coverage, thinking that they are saving money.  The problem comes up is when bikers are injured by an uninsured driver and the bikers themselves have no UM coverage.  They can of course still sue the uninsured driver, but usually these people fail to have sufficient assets to go after and the uninsured driver can also file bankruptcy, and the injured bikers still gets nothing.

So whether you call it a big mistake, an error in judgment or just a simple lack of understanding or knowledge, it makes no difference.  Do not ride without this coverage.

Cindy Speaker: Okay.  Now, let me ask this.  How much do you recommend that a biker have in terms of UM coverage?

Randy Sevenish: Well, that really depends but mostly upon the amount of risk that they are willing to take and gamble with.  And unlike liability coverage, which is intended to pay someone else for their injuries caused by the biker’s negligence, UM coverage provides compensations to the motorcyclist themselves, to their family members, passengers, etcetera, when injured by an uninsured person.  So, for that reason alone, it just make sense to purchase at least as much UM coverage as they have in what’s called liability coverage.  We strongly recommend that based upon their assets and comfort level that they should have at least $250,000.00 per person and $500,000.00 per accident.  And although probably beyond the scope of this question, if they also own a home and indeed have coverage on their bike for 250, 500, they should also consider securing what’s called an umbrella policy of one to two million dollars for just a couple of hundred more dollars annually.

Cindy Speaker: Okay.  Now, let me ask you this.  Suppose that someone has auto UM coverage, is that going to be have any help to them if they don’t have it where their motorcycle and maybe there is an accident that occurs?

Randy Sevenish: Be very careful here.  It really depends upon the ownership of the vehicle their on when this happens.  Many motorcyclists include their bike on the same policy as their car, truck and even homeowners, but some choose to have a completely different company to insure their bike for some reason.  And the general rule is that UM coverage follows you wherever you go.  So that means that whether you’re in your vehicle or someone else’s vehicle or in their truck, your truck, bicycle, moped, motorcycle or even if you re jogging down the road.  So typically, UM coverage follows you, but most companies will exclude UM coverage if it is not specifically covered on the motorcycle owned by you without first paying for that coverage.  So it’s best just to have UM coverage on all vehicles you own, period.  When in doubt, get with your agent and just read the fine print because as I’ve always said the big print give it and the small print take it away.

Cindy Speaker: That’s a great line and so true.  Randy, if someone wants more information, how can they reach you?

Randy Sevenish: Certainly, they can call me directly at 1-800-278-9200 or online at www.sevenishlaw.com.

Cindy Speaker: Randy, thanks so much for your time today.

Randy Sevenish: Thank you, Cindy.

Cindy Speaker: Until next time.  This is Cindy Speaker for Main Street Law.