Insurance_1015I have a cautionary tale to share with you.

We are working for a motorcycle rider who was driving south on a busy Colorado road at night. A car came out of a side street on the east side of the road and made a left-hand turn, crossing all the northbound lanes. The car hit our client, trapping his leg between the car and the bike. His leg was nearly amputated.

Since the accident, this motorcyclist has had nine surgeries and is facing over $1.5 million in bills.

Our client only had $25,000 in insurance and the auto driver only had $25,000. Not only is this poor guy facing huge medical bills, but his career is over and he’s facing an entirely new way of life. And all we can get for him is $50,000.

Do you really want to trust other drivers to carry enough insurance to cover your medical bills if they hit you?

I cannot stress enough that anyone who owns a motorcycle should purchase the absolute maximum they can afford in insurance. At a minimum, you should have $250,000 in Underinsured Motorist (UIM) coverage as part of your motorcycle insurance.

Additionally, if you own your home, you need to add an umbrella policy to your homeowner’s insurance that covers UIM for your motorcycle. Get the most coverage that you can get but, at a minimum, you should get $1 million in coverage.

Here’s another case we’ve had and this one has a brighter ending…

This motorcyclist was traveling south on Santa Fe Boulevard when a car hit him by making a left-hand turn similar to the one I described above. The impact nearly broke every bone in the motorcyclist’s body. Even his face looks completely different.

Luckily, the driver of the car had $2,250,000 of coverage and our client had $100,000 in UIM. He should not face financial ruin due to someone else’s negligence. But he got lucky that he was hit by the right person!

Do you really want to trust other drivers to carry enough insurance to cover your medical bills if they hit you?

Too often, people don’t carry UIM because they think their healthcare insurance is enough. But that’s not true. First, think of your health insurance deductibles and co-pays. In some severe cases, those expenses alone are enough to stress a person’s finances. Second, health insurance doesn’t cover everything that UIM covers.

Uninsured/Underinsured Motorist Insurance covers:

  • Lost wages
  • Future medical expenses
  • Any damage arising from the accident (with the exception of property damage)
  • All economic and noneconomic loss, which includes pain and suffering

Health insurance and UIM insurance are completely different. To learn more about this topic, download my free book.

In a nutshell:

  • You should have a minimum of $250,000 in UIM included in your motorcycle insurance.
  • If you own your home, add an umbrella policy of $1 million for UIM on your motorcycle.