Insurance Terms Explained
Sometimes referred to as bodily injury and property damage insurance. This part of the policy--the basic condition of insurance required in many states--pays for damage you may inflict on others. If you are found legally liable for causing bodily injury or property damage, this insurance pays for it up to the limit of the policy. Check the terms of your policy carefully. Many times this policy will not cover you if you're engaged in a commercial operation; it may not cover relatives using your vehicle; and it probably won't cover you in the event the damage was caused by an intentional act on your part. It's worth stating that the legally mandated minimums in most states are barely adequate. Choose as much liability insurance as you can afford.
If you are hurt by another motorist who does not have insurance, this policy covers medical treatment for you and your passenger. In addition, underinsured motorist is a stop-gap policy that takes over should costs spiral beyond the limit of the other person's--the jerk who hit you--policy. This aspect of coverage deals only with the people, not the hardware.
This is where the insurance company agrees to pay to repair your motorcycle in the event of theft, fire, flood or any other mishap that does not involve a collision. Comprehensive rates are affected by where you live and how you store your motor-cycle; a good neighborhood and a garage are best.
Pays for damage incurred in a crash, excluding the deductible. The deductible is basically the amount you agree to pay for each accident you have, and can be anywhere from $100 to $1000. Remember, you are always the first to pay the deductible; the insurance company steps in only after the deductible has been met.
This coverage pays the medical expenses for you and your passenger. This part of the policy is intended as a supplement to your own health insurance. Speaking of which, it's worth checking your health-insurance policy to make sure coverage is not specifically excluded while you're on a motorcycle.
These will depend on the policy, but generally, an accident that occurs while racing or stunting is not covered. As for track days, check your policy carefully for a specific exclusion. Some insurance companies consider track days racing, while others make the distinction between actual competition and track time for the purpose of entertainment and education.