Minimum Insurance Requirements

[TomT]

My 2010 BMW R1200RT is just $380 a year with a $500 deductible and with C&C...

Jeez. My superport bike is only ~$430 a year with $500 deductibles. Yours a Ducati 1199?

 

[mctom987]

My 2010 BMW R1200RT is just $380 a year with a $500 deductible and with C&C...

That's not a supersport. Hell, it's not even a sport anything. It's a touring bike. Huge difference between that, and a bike that does 0-60 in 3 seconds. Half the engine size, 3/4 weight, and roughly same power output.

My VL800/Boulevard C50T costs about that much.

 

[MikeinDenver]

Brand new YZF-R06. Not even a liter bike.

Like I've mentioned, rates depend a lot on the specific person. I'm in the "most likely to kill himself" age, so my rates are stupid high compared to someone 5 years older.

Ahh mine is a Daytona 675.

 

[johnrhansen]

My insurance costs like crazy. I have the max on everything, plus a million dollar umbrella policy. Like they say.. *$%$^ happens! I want the insurance company to be there in case it does. Money well spent.

 

[MikeinDenver]

My insurance costs like crazy. I have the max on everything, plus a million dollar umbrella policy. Like they say.. *$%$^ happens! I want the insurance company to be there in case it does. Money well spent.

It is a tough thing for people to want to spend a lot of money on because it isn't tangible, it isn't a flashy new 65" TV in the living room. But when you need it and you haven't scrimped on it you will be beyond relieved.

 

[LTLFTcomposite]

Funny how after all the excitement over saving on fuel costs with EVs somebody finally noticed it's a relatively minor consideration in the overall cost of having a car.

So all those personal injury lawyer billboards around town hawking how many hundreds of thousands they can get you... that money doesn't come from "the insurance company" ?

 

[johnrhansen]

I was thinking it wasn't the liability coverage that costs more, but the collision. I imagine fixing a leaf can get really expensive. Don't you have to take the battery out every time you paint the car?

 

[MikeinDenver]

I was thinking it wasn't the liability coverage that costs more, but the collision. I imagine fixing a leaf can get really expensive. Don't you have to take the battery out every time you paint the car?

Depending on your coverage and other variables collision can be and in my case is the most expensive piece. However the LEAF is cheaper than our Santa Fe which cost slightly more.

 

[RonDawg]

I was thinking it wasn't the liability coverage that costs more, but the collision. I imagine fixing a leaf can get really expensive. Don't you have to take the battery out every time you paint the car?

Depending on your coverage and other variables collision can be and in my case is the most expensive piece. However the LEAF is cheaper than our Santa Fe which cost slightly more.

In my case, the Leaf's C&C coverage with with $250 comp/$500 collision deductibles only costs 60% that of the Leaf's liability coverage with the maximum amounts my insurer will allow. And the Leaf's C&C is only 65% the cost of the same on my 2006 Audi.

 

[Slow1]

So all those personal injury lawyer billboards around town hawking how many hundreds of thousands they can get you... that money doesn't come from "the insurance company" ?

Those lawyers will only take your case if the target has 'deep pockets' and frankly they don't care if insurance or the actual defendant pays.

Thus the earlier statement that "if you are an apartment dweller with no assets... you can get away with lower liability coverage". Basically what it comes down to is that if you are in a situation where you can be held liable and have assets then you are more likely to be sued (something in it for the lawyers). If you have nothing then at best you would be a "co-defendant" as in you caused it, but had some association with someone with deep pockets who is really being targeted (i.e. your employer, the bar you just left, whatever).

Likewise, if you do happen to have a high level of liability insurance it is in your best interests to keep that confidential. IF a lawyer is considering a case against you and knows this then they know there is a potential payoff, if they don't and you appear to have little in the way of assets they may pass on the case.

Naturally there are exceptions to all the above...

 

[TomT]

Yep, mine takes a whopping 3.9 seconds! :lol:

And I just got a renewal notice. My rate went down $60 for the upcoming year...

That's not a supersport. Hell, it's not even a sport anything. It's a touring bike. Huge difference between that, and a bike that does 0-60 in 3 seconds.

 

[dgpcolorado]

Actually, those limits are nothing these days... Badly damage a Tesla and you will already be over your limit... If a person in the other car suffers even moderate injures, you are already over your liability limit... I consider them to be entry level limits at best. I also carry a liability umbrella that covers me for everything (house, car, boat, personal, libel, slander, etc.) at a much higher limit beyond that of my individual policies.

+1. I just looked it up and my umbrella is $185/year. Not worth getting wiped out if I get sued for liability; the car policy limits are too low to be of much use.

The money I have saved over the years with a 500 or 1,000 dollar deductible will pay for the deductible many, many times over...

Yes. The idea behind insurance is to protect against costs that would be difficult or impossible to afford, not to actually have to use it. If my house burns down I can't afford to rebuild it without insurance. If I nick my car and have $500 damage, I can come up with that without difficulty. If I total it, that's going to be tougher to pay for while the car is still fairly new. (And the risk of deer collisions is fairly high where I live.)

It is especially helpful to have high deductibles for house insurance because it reduces the temptation to make small claims. One or two small claims and the insurance company will raise your rates or drop you altogether. That can be way more expensive than just paying a high deductible if the worst happens.

It's a subtle concept for many people, but insurance is for disasters; you shouldn't try to "get your money's worth" by actually using it unless the worst happens. Ideally, I'd like to never have to file a claim: let my premiums go to pay for someone who was less fortunate.

 

[mctom987]

It's a subtle concept for many people, but insurance is for disasters; you shouldn't try to "get your money's worth" by actually using it unless the worst happens. Ideally, I'd like to never have to file a claim: let my premiums go to pay for someone who was less fortunate.

Totally agree on you here, but that's why I have high liability. The idea is that I hope to never use it, but if I do, it's 100% guaranteed to be cheaper having had the liability coverage.

Unfortunately, for motorcycles, and specifically the kind I have, C&C is nowhere near that kind of a comparison. Paying $5000/year is just absurd. I'm banking on the fact that if I do total the bike, it's probably going to be their fault, and their liability covering my bike. Why should I pay thousands extra? Lets say I total my bike of my own fault. Now, the insurance company is probably going to make a stance that it was through negligence that caused the accident, and they refuse to pay. After all, why would they want to pay if I decide to take a sledgehammer to my bike? That's not what insurance covers.

I've seen insurance claims get taken to court, and those usually end in $1,000,000 settlements, so don't go thinking 15k coverage is good enough. Having $100k+ liability is highly recommended, and probably won't cost much more than $100/mo. (For those doing the math, paying $100/mo for $100k liability means it will take 83 years to break even. This is why it's a "duh" option)

 

[MikeinDenver]

Lets say I total my bike of my own fault. Now, the insurance company is probably going to make a stance that it was through negligence that caused the accident, and they refuse to pay.

Unless you totaled it on purpose they are on the hook to pay. Negligence is covered, intentional acts are not.

 

[dgpcolorado]

Totally agree on you here, but that's why I have high liability. The idea is that I hope to never use it, but if I do, it's 100% guaranteed to be cheaper having had the liability coverage...

Yup. And that's why I have my umbrella policy. I also agree with you about not paying for the motorcycle C&C, given the high premiums. Makes perfect sense to me.

 

[mctom987]

Lets say I total my bike of my own fault. Now, the insurance company is probably going to make a stance that it was through negligence that caused the accident, and they refuse to pay.

Unless you totaled it on purpose they are on the hook to pay. Negligence is covered, intentional acts are not.

Negligence is intentional disregard, thus, could be a legitimate reason to deny coverage. It would be pretty hard to prove negligence, though. I've heard (though not verified) claims being denied because of excessive speeding (>120MPH). In stark contrast to that, you have a video where a passenger successfully worked with a lawyer to negotiate a payout that was previously denied.

 

[TheAngryMuskrat]

Totally agree on you here, but that's why I have high liability. The idea is that I hope to never use it, but if I do, it's 100% guaranteed to be cheaper having had the liability coverage...

Yup. And that's why I have my umbrella policy. I also agree with you about not paying for the motorcycle C&C, given the high premiums. Makes perfect sense to me.

What is an umbrella policy and how do I sign up for it (Liberty Mutual customer)??

 

[MikeinDenver]

Lets say I total my bike of my own fault. Now, the insurance company is probably going to make a stance that it was through negligence that caused the accident, and they refuse to pay.

Unless you totaled it on purpose they are on the hook to pay. Negligence is covered, intentional acts are not.

Negligence is intentional disregard, thus, could be a legitimate reason to deny coverage. It would be pretty hard to prove negligence, though. I've heard (though not verified) claims being denied because of excessive speeding (>120MPH). In stark contrast to that, you have a video where a passenger successfully worked with a lawyer to negotiate a payout that was previously denied.

Accidents happen because of negligence. Otherwise they wouldn't. Definition: "Law. the failure to exercise that degree of care that, in the circumstances, the law requires for the protection of other persons or those interests of other persons that may be injuriously affected by the want of such care." Does not have to be intentional disregard.

It all depends on the policy. I have ready many a policy and I have never read anything that would preclude coverage based on speed. Possibly on non-standard auto policies but even then I doubt it. Look at the exclusions on your own policy. I am 100% sure you will not see anything.

 

[MikeinDenver]

Totally agree on you here, but that's why I have high liability. The idea is that I hope to never use it, but if I do, it's 100% guaranteed to be cheaper having had the liability coverage...

Yup. And that's why I have my umbrella policy. I also agree with you about not paying for the motorcycle C&C, given the high premiums. Makes perfect sense to me.

What is an umbrella policy and how do I sign up for it (Liberty Mutual customer)??

First talk to your agent if you have one. I have LM and I have an agent in the building next to mine. Quite convenient. An umbrella policy will kick in for liability above your auto or homeowners policy. Typically they require underlying coverage of a set amount say $500k liability on your auto policy. Then they start at $500,000.01 and go up to whatever the limit is you select. If you have any assets definitely a must have.

 

[Slow1]

It all depends on the policy. I have ready many a policy and I have never read anything that would preclude coverage based on speed. Possibly on non-standard auto policies but even then I doubt it. Look at the exclusions on your own policy. I am 100% sure you will not see anything.

I wonder if excessive speed could be considered "committing a crime" and as such be excluded? I've seen exclusions along that line - i.e. if you wreck your car in the process of robbing a bank I don't think they pay out.