Misunderstanding Bodily Injury - Mike Felder Insurance

1647 Willow Pass Rd, Suite 347, Concord, CA 94520
Phone Toll free in California 800-7-CYCLES
California's Largest Motorcycle Insurance Agency

THUNDER PRESS
MIKE FELDER'S INSURANCE COLUMN
BUELLS

THUNDER PRESS MIKE FELDER'S INSURANCE COLUMN "When You ASSUME.... -------------------------------------------------------------------------------- The other day I received a call from someone trying to get insurance. As we talked about the different coverages, I quickly noted there was a grave misunderstanding about one particular coverage. The caller ask about the medical coverage on the policy. He wanted to make sure that the policy we were discussing had the same limits. When I asked what limits he had, he said he had $50,000 worth of medical. I inquired if he had his policy handy and could read that part to me. He said the policy was at home but he knew he had it on it. I asked him to get the policy and call me back. There is a part of the policy referred to as BODILY INJURY. Sometimes it is also called BI. This is the coverage that pays outward, up to whatever limit one purchases. It is strictly a third party coverage. That means, it pays anyone you may damage in the operation of your vehicle. More importantly, it pays nothing to you!! The law in California requires a minimum of $15,000 worth of BI. Many people opt to have that limit raised to $50,000 or $100,000 or more. But still, whatever limit you purchase, it still does not pay a penny to you. Back to our caller. The person I spoke with was sure his coverage was for $50,000 for any damages done to himself. He insisted that bodily injury meant injury to any body....including his own. He was positive that Bodily Injury and Medical are one and the same. In order to prevent a long argument on his policy and his interpretation of it, I suggested he call his own agent and ask. Motorcycle insurance policies are notorious for being without medical for the operator. Some companies have offered "token" medical coverage. By token, I mean $500 or $1000. In the many years I have been around this business, I have never seen one that offers $50,000 worth of medical. The lesson behind this is a familiar one. Make sure of what is on the policy before you need to use it. I can only imagine how surprised our caller would have been if he found out about the lack of $50,000 of medical coverage after an accident. Never assume the words to mean something if you are not sure. Every time I read an insurance policy, I am convinced that English must be my second language and I failed it in school. The word are all understandable by themselves, but mixed together they take on some magical mysterious meaning. Ask your agent for an explanation in English about the different coverages. Beside asking what is covered, ask what is not covered. Believe it or not, that spells out the truth considerably faster. If your agent is any good, that type of explanation will do you a lot more in understanding your risks! As a footnote, I might add that there one company that now is attempting to raised medical coverages to as high as $10,000 on a motorcycle. I have not yet seen the rates but will keep everyone posted. And remember....the smart shopper is the educated shopper!!

Information in this article is probably correct as of the date it was written. Please check with your insurance agent or call Mike at 800-729-2537 before you make any life changing decisions based on what you read here. Comments are always welcome.