"Full Coverage" Insurance - do I need it or is it really just an option?

[zenwhipper]

Folks-

I'm a bit of an insurance moron and have some questions. We just bought my wife an 2005 SV650. We paid cash for the bike at $4000. I'm not sure what type of coverage she should get and how much for the limits. Can she forego 'full coverage' to save money?

Thanks for the comments.

Scott

(likely future FJR owner )

 

[exskibum]

Everyone's personal definition of "need" is different. But . . . as far as state insurance requirements, the answer is probably that it is not required. The states regulate insurance and each is different, but I am unaware of any state that requires more than property damage and bodily injury liability coverage in some specified minimum amount. Usually, getting higher liability limits is a smart idea and the difference in premiums between the minimum and substantially higher limits is amazingly affordable.

IF you have financing on a vehicle, the finance company will typically require collision and comprehensive coverage, but in the situation you described, it sounds like you can make the election not to obtain such coverage and bear the risk of loss yourself.

 

[kid41]

id say its a matter of opinion, depending how much its gonna cost for full coverage and the price of the bike, if you paying 1000 for full id go with less coverage, also depending on how much you save going that way, is the diffence between full and less coverage significant .

 

[2WheelTiger]

It depends on whether you can take a $4000+ financial hit. Your choice.

 

[Tyler]

It depends on whether you can take a $4000+ financial hit. Your choice.

And possibly more should you have an incident with an uninsured motorist, etc.

I got quotes for minimum coverage vs, full coverage with State Farm. The difference was quite minimal so I went with full coverage.

 

[Bearly Flying]

Another option is to increase the deductible, ( the portion You pay for repairs) to $1000 or $1500 on the full coverage policy.

Any minor incidents, fix the bike yourself. Use the insurance in case of a major incident.

Generally a higher deductible will drop the premium a fair amount.

 

[AethonFJR]

+1 to what THEY said….

You purchase insurance to cover losses that you can not afford. Higher deductibles definitely lower premiums.

IMHO Uninsured motorist coverage, especially Personal Injury coverage is a must. Even if you can take a $4k hit, consider if you can take a hit for some mega bucks in medical bills if you get struck by an uninsured motorist or a hit and run driver. While uninsured/hit & run incidents might have a low probability, it has the potential for a serious consequence. Just food for thought.

 

[SacramentoMike]

Can she forego 'full coverage' to save money?

Hell yes. Carry the bare minimum required by law. But don't crash.

 

[ctfjr]

It depends on whether you can take a $4000+ financial hit. Your choice.

This is the smallest exposure you have. Let's say you have the minimum (or no) liability insurance. If you are at fault in an accident can you even fathom the risk you are at - assuming you have some net worth, that is all at risk. Just think of the medical bills you could cause someone if you hiit a pedestrian or otherwise caused an accident where someone was seriously hurt.

 

[ahchiu]

It depends on whether you can take a $4000+ financial hit. Your choice.

This is the smallest exposure you have. Let's say you have the minimum (or no) liability insurance. If you are at fault in an accident can you even fathom the risk you are at - assuming you have some net worth, that is all at risk. Just think of the medical bills you could cause someone if you hiit a pedestrian or otherwise caused an accident where someone was seriously hurt.

I have full coverage, it's more than the cost of the bike, I got rear ended and the other party only have $50,000 coverage and that will not cover my medical, I have underinsured coverage of $250,000, PIP was not an option with my motorcycle policy so look at it for your own protection if someone hits you do you have the medical coverage for yourself?

Marcus

 

[Silver Penguin]

After Andy's accident (100% cager at fault), we reviewed our own insurance coverage. The driver had a $100K policy which nowhere near covered the amount needed. His medical bills alone were almost twice that, but our attorney negotiated with our own health insurer to take a substantially reduced fee. We already had uninsured/underinsured motorist coverage, but learned that it cannot be used to 'double-dip' in CA. We carried $100K, the same as the driver. She had no assets for us to recover.

We got to thinking that if either of us made a stupid mistake on the road that hurt another person, we DO have assets, which we would lose. The increased premiums bought us peace of mind, together with an umbrella policy that will protect our assets.

 

[Bounce]

umbrella liability policies (under your homeowner's policy) are cheap at something like $150 per MILLION$ per year.

 

[bucky]

I carry liability and uninsured motorist only. Keeeps me focused on keeping the bike between the ditches.

 

[SLK50]

I carry liability and uninsured motorist only. Keeeps me focused on keeping the bike between the ditches.

Makes sense if you can afford to replace your FJR out of pocket. Most can't.

 

[Bounce]

S happens. Can you afford to replace that other guys ultra-expensive luxury car and pay their medical bills because you bashed them while trying to avoid the ***** who nearly hit you (but then drove off, oblivious to the carnage they just triggered)? Can you afford to lose everything in a suit by them when your minimum requirement insurance doesn't cover all their expenses?

Heck, minimum requirements of FULL coverage often don't allow to replace the typical mid-priced family car or SUV these days. That leaves you draining your band account, puts your other property at risk, etc. just to make them whole (and we haven't yet covered your losses for medical, etc., since many employee-based health insurance doesn't cover "high risk" activities.

 

[Aasland]

I seem to recall that in WA you don't even need liability insurance on motorcycles. Not saying that's a good idea ... just saying I seem to recall that was an option.

Full coverage MC insurance is so damn cheap it's funny. Our 2001 SV650 costs something like $180/year, the FJR about twice that, and a multi-million umbrella policy is about $250'ish a year. It's a no-brainer if you have any assets worth protecting.

 

[PhilJet09]

I seem to recall that in WA you don't even need liability insurance on motorcycles. Not saying that's a good idea ... just saying I seem to recall that was an option.

Full coverage MC insurance is so damn cheap it's funny. Our 2001 SV650 costs something like $180/year, the FJR about twice that, and a multi-million umbrella policy is about $250'ish a year. It's a no-brainer if you have any assets worth protecting.

Please excuse my ignorance, but is this umbrella policy something under your home owner's insurance, or something else?

 

[Silver Penguin]

I seem to recall that in WA you don't even need liability insurance on motorcycles. Not saying that's a good idea ... just saying I seem to recall that was an option.

Full coverage MC insurance is so damn cheap it's funny. Our 2001 SV650 costs something like $180/year, the FJR about twice that, and a multi-million umbrella policy is about $250'ish a year. It's a no-brainer if you have any assets worth protecting.

Agreed, The umbrella policy is a relatively cheap way to buy some peace of mind. We've amassed a house, and some rather nice toys, that I'd like to protect.

We learned about it after Andy was the victim of a careless driver. Our attorney felt that it ought to be a pretty big payout for him since he had life-altering injuries as well as the pain experienced during five weeks in the hospital, then an extended period of rehab.

The driver's insurance paid the full benefit, with no question, but that was nowhere near the sum owed. The driver claimed to have no assets, which research showed to be true. Had she had a home, or some nice toys, they would have been played into the mix.

Now, we both drive/ride carefully and would prefer NOT to cause that kind of harm to anyone else, but **** happens. The umbrella policy would allow us to make things a little more right for any victim of our carelessness, without taking our toys away.

 

[Bounce]

https://en.wikipedia.org/wiki/Umbrella_insurance

We have our cars, home, and bike through a single agent even though each policy may be through different companies. The umbrella over reaches all of them. Such policies were "highly recommended" by the instructors at our CHL courses.