With all the different type of policies, coverages, exclusions, endorsements, and options, insurance can be more of a hassle than rebuilding your engine from scratch. The following guide will categorize and explain the various parts of an insurance policy. You can use the checklist enclosed to help you compare coverages when you review your existing policy or when you are shopping for a new policy.

BASIC LIABILITY. Also called PL/PD, FINANCIAL RESPONSIBILITY, LIABILITY ONLY. This is the bare-bones minimum. This is what is required in California. It is the "proof of insurance" that you are asked for when stopped. Liability COVERAGES AND LIMITS are ALWAYS stated on your policy. they come in two areas; Bodily Injury (BI) Minimum coverage limits are $15,000 per person and $30,000 per accident. Property Damage (PD) Minimum coverage limits are $5000. In both cases, higher limits may be purchased for an increased premium. Both these coverages are what is called third party. That means that they are for the other person when you are at fault. In a nutshell, it protects others from the damages you may incur on them. It does not cover you or your cycle. It is under this coverage that GUEST PASSENGER LIABILITY is usually included. That is the part that offers protection to the passenger on the back. Some companies charge extra for this, some include it. Always ask if it is included!

COLLISION. Also called UPSET, ACCIDENT. This pays for the repairs on your cycle (less the deductible). It will pay up the value of the vehicle the moment before the loss. Check to see what methods they use to decide the value. The coverage may be used regardless of who is at fault. This coverage is referred to as first party. In a nutshell, that means it protects you from the damages you may inflict upon yourself.

COMPREHENSIVE. Also called FIRE & THEFT. This is the part of your policy that covers your cycle in cases of fire, theft, vandalism, flood, and most events which are not covered under your collision. It also pays up to the value of the cycle the moment before the loss. Again, check to see what methods they use to decide values. This coverage is also first party.

UNINSURED MOTORIST INSURANCE. Also called UMI. * NOTE * Some companies divide this coverage into two parts. One for the bodily damage, one for the property damage. Check your policy closely or ask your agent to see if the property damage is included or needs to be purchased separately. This coverage pays for injuries and losses due to injury (loss of wages) caused by an uninsured motorist. This coverage only applies when the uninsured motorist is at fault. The accident must also be reported to Law Enforcement within 24 hours if hit-&-run. Minimum limits set by state at $15,000 per person and $30,000 per accident. Limits may be increased by paying an addition premium. On the property side, the coverage will either waive the deductible if you already have collision coverage OR pay up to $3,500 for compensation of repairs to vehicle or replacement. Identity of uninsured motorist must be know!! Limits can be raised by paying an additional premium.

UNDER-INSURED MOTORIST Also called UIM. This coverage will supplement the other person's coverages. In a nutshell, if the damages to you are more than his insurance limits, this will kick in and supplement. Limits again can be raised by paying a higher premium. Some companies have discounts that will apply to the pricing structure. Those discounts can be for being previously insured, or being claim-free, or having taken an approved Rider Safety Program. Always ask if the company offers any sort of discounts in the subsequent years. These discounts can add up! Most companies offer many different combinations of the above coverages. The five basic coverages listed above can be mixed and matched into almost ten different combinations depending on the company you are dealing with. With that many different possibilities, it is easy to see why there are some very large differences in pricing when you are calling around for price quotes.