Guide to Motorcycle Insurance Terms

Motorcycle insurance laws vary from state to state. All states, however, require minimum Bodily Injury Liability and Property Damage coverages. A typical automobile/motorcycle insurance policy is structured to provide a combination of liability, personal injury protection, medical payments, uninsured and underinsured motorists, and physical damage coverages. Below we explain some useful insurance terms.

Liability coverage (also known as BI or bodily injury coverage). This is insurance coverage to pay for someone else's injuries if an accident is your fault. It does not pay for your own injuries. Liability insurance protects against the harm your vehicle causes occupants of other vehicles and their property. Most states require minimum liability limits. Liability limits are typically expressed by three numbers. For example, a policy may have limits of 25,000/50,000/10,000, which means $25,000 injury liability limit per injured person, $50,000 total injury liability limit for all injured, and a $10,000 property damage limit.

Personal Injury Protection (PIP). PIP insurance pays medical expenses and lost earnings up to the coverage limit for a driver or passenger in your vehicle, or a pedestrian injured by your vehicle, regardless of fault. It is generally primary to health insurance: So, in the event of an automobile accident your health insurance does not pay until PIP is exhausted. This insurance is usually very costly for motorcycle riders.

Medical Payments (also commonly known as Med Pay).  Optional insurance policy coverage to pay for medical expenses resulting from an automobile accident, without regard to fault. You may be obligated to reimburse your insurance company for the med pay benefits it pays out to you if you obtain a recovery from a third party responsible for your injuries.

Uninsured Motorist (UM). Coverage that protects you and persons covered by your policy in the event of an accident with an uninsured driver or hit and run accident and it is their fault. If a covered person is hurt in an accident with an uninsured driver, your UM coverage stands in the place of the uninsured driver who should have had insurance. 

Underinsured Motorist (UIM). Coverage that goes into effect when your injuries exceed the policy limits of the faulty driver, and your UM policy limits are greater than the faulty driver's liability coverage. Your excess coverage is added to the adverse driver's liability coverage to pay the claim. Your UIM limits are the same as your UM limits.

Physical Damage (Property Damage of PD). Coverage that pays for damage to someone else's property, e.g. automobile. This insurance does not cover your own motorcycle.

Collision. Coverage that pays for damage to your motorcycle from an accident regardless of fault. 

Comprehensive. Collision coverage, plus it covers your motorcycle for other losses such as fire or theft.

Uninsured Motorist  -- Property Damage (UM/PD). Coverage for damage to your motorcycle if it's the adverse driver's fault and that driver has no insurance.

Umbrella. A policy with coverage that picks up where your regular policy leaves off, usually up to $1,000,000. It requires underlying coverage, usually with a threshold limit of coverage per person.

The above material is for informational purposes only and does not constitute legal advice. The material is not guaranteed to be correct, complete, or up to date. Insurance regulations and case law change, and they vary from state to state. Check with a qualified insurance agent in your area to review your insurance needs.