A serious motorcycle crash can disrupt nearly every part of a rider’s life. Medical appointments interfere with work, the motorcycle may be unusable, and ordinary expenses continue while insurance decisions remain unresolved. It can be especially frustrating to discover that the driver who caused the crash carries only limited coverage.
The other driver’s policy, however, is only one place to look. A rider’s own motorcycle insurance can provide additional protection, but the available benefits depend on the types and limits of coverage selected before the accident.
Minimum Liability Coverage Can Run Out Quickly
Rhode Island’s standard split liability limits are $25,000 per injured person, $50,000 total for bodily injuries in one accident, and $25,000 for property damage per accident.
If a rider has $150,000 in medical expenses and the responsible driver carries only $25,000 in bodily injury coverage, that policy may leave a substantial shortfall. A rider’s motorcycle liability insurance generally pays covered claims when the rider causes a crash. It does not ordinarily cover the rider’s injuries or damage to the motorcycle.
Reduced UM/UIM Coverage Leaves Riders Exposed
Uninsured and underinsured motorist coverage, commonly called UM/UIM coverage, can help when the driver responsible for a crash has no insurance or lacks enough coverage to pay the rider’s losses. Under Rhode Island law, policies generally provide bodily injury UM/UIM coverage equal to the policy’s bodily injury liability limits. The named insured can choose lower limits in writing, generally no lower than the statutory minimum.
There is an additional exception for someone who purchases only the minimum compulsory liability coverage. That person can reduce UM/UIM coverage to zero by signing the required advisory notice. As a result, riders should review their declarations page and any coverage-selection or rejection forms, especially if the policy was purchased years before the crash.
This review should also occur before accepting a settlement from the other driver’s insurer. A UM/UIM policy can contain notice, cooperation, and consent requirements that may affect the claim.
Liability-Only Insurance Does Not Repair Your Motorcycle
The responsible driver’s property-damage coverage can pay for covered motorcycle damage, but payment can be delayed by a fault dispute or limited by other damaged property sharing the same coverage.
Collision coverage pays for covered crash damage to your motorcycle, subject to a deductible and policy terms. Comprehensive generally covers events such as theft, fire, and vandalism. Neither is generally required by Rhode Island law, although a lender can require them.
Without collision coverage, the rider may need to rely on the responsible driver’s insurance or any uninsured-motorist property-damage coverage included in the motorcycle policy. Because Rhode Island permits this coverage to be rejected in writing, review the declarations page and any signed rejection form.
A Total-Loss Payment Might Not Satisfy the Loan
Even when a policy covers the motorcycle, the payment might not eliminate the remaining loan. Physical-damage coverage ordinarily values a totaled motorcycle according to its actual cash value rather than the outstanding balance. For example, a rider could owe $14,000 while the insurer values the motorcycle at $10,500.
Guaranteed asset protection, commonly called GAP, can address some or all of that difference when its terms apply. Review the financing documents to determine whether GAP protection was purchased through the insurer, dealership, or lender.
Medical and Passenger Benefits Depend on the Policy
Property damage is only part of the insurance review. Optional medical-payments coverage can help with covered treatment regardless of who caused the crash, although its limits are often modest. When a passenger is injured, the available benefits can depend on fault, the passenger’s status under the policy, and the language of any exclusions.
Review Every Source of Coverage Before Settling
Before accepting a settlement, gather the complete policies, declarations pages, endorsements, coverage-selection forms, rejection forms, and loan documents. A letter offering the other driver’s policy limit does not necessarily mean that all available insurance has been identified.
Sorting through several policies can be difficult while dealing with injuries, repairs, and time away from work. Corrao & Robles Law can review the available coverage and explain how the limits, exclusions, and settlement requirements apply to the crash. Contact Corrao & Robles Law to discuss your insurance options.
