PIP

Fact or Fiction: The Other Driver’s Insurance Company Will Pay Your Medical Bills

Posted on Friday, January 22nd, 2021 at 3:00 am    

You were in a car wreck.  It wasn’t your fault.  The other driver apologized for causing the wreck and their insurance company said it “accepted liability.”  This means that the other driver’s insurance company will pay your collision related medical bills as they are incurred, right?  WRONG!

This is a common misconception.  The other insurance company is NOT required to pay for your medical care as you try to get better – and they won’t!  Instead, YOU are required to pay for your collision related medical treatment as you incur the bills.  You will have to do this by using your Personal Injury Protection (“PIP”) insurance on your auto policy, by using your health insurance, or by paying out of your pocket.

When you have completed your collision related medical treatment and have recovered as much as possible, you may be entitled to payment of your personal injury claim, which may include reimbursement of your collision related medical expenses.  However, this usually doesn’t happen until long after the collision!  Even if a lawsuit is filed, it often takes a year or more for the lawsuit to resolve.

TIP:  Make sure you have a way to pay your medical bills.  We strongly recommend that you purchase PIP insurance in the amount of $35,000 on your auto policy.  It is far better than using health insurance.  See our blog and website for articles about PIP insurance.

If you’re in need of a lawyer, call Nelson Boyd at 206-971-7601.


What You Need to Know About Motorcycle Insurance Part 4: The Policy You Ought to Have

Posted on Sunday, November 15th, 2020 at 7:24 pm    

The Policy You Ought to Have

If that’s the minimum, what’s a really solid policy look like? It looks like the above, but with these changes:

  • Bodily Injury Liability Coverage and Uninsured/Underinsured Motorist Bodily Injury Coverage: $250,000/$500,000, with a $1 or $2 million “umbrella” on both types of coverage (see below);
  • Property Damage Liability Coverage of $50,000, and;
  • Personal Injury Protection of $100,000.00.

Yeah, the ideal policy is going to cost you some money. But it won’t cost you anything like what a wreck will cost you if you don’t have enough insurance. At the next “bike night” look around. See anyone who has been in a wreck? It happens – and it happens to bikers way more often than it should. Protect yourself. The last thing you need as you are recovering from a wreck is the worry of bill collectors, lawyers, and bankruptcy.

“Umbrella” coverage gives you a lot of extra coverage for not that much more money – talk to your agent about it! You usually have to have pretty high limits on the underlying policy, but it is worth it when you need it.

There are a lot of good insurance companies and good insurance agents out there. Some know bikes and some don’t. Several companies are going out of their way to attract bike owners as customers. Talk to several agents. See if they know what you are talking about when it comes to the special needs of bike owners and riders. But most of all – protect yourself. You don’t know despair until you have been laying in a hospital bed because some idiot ran over your bike and you get a letter telling you that they didn’t have any insurance and/or they just filed bankruptcy. Or until you get sued for way more money than you have coverage for. If you don’t take care of yourself, no one else will take care of you. Ride to live and live to ride – without the worries of what will happen if you have a bad day.

Taken from: What you Need to Know about Motorcycle Insurance


What You Need to Know About Motorcycle Insurance Part 3: Kinds of Motorcycle Insurance Coverage

Posted on Wednesday, November 11th, 2020 at 7:23 pm    

“I Have Insurance”

The fact that you have “some” insurance doesn’t really mean anything.

A lot of people don’t understand what insurance coverage they have, let alone what  insurance coverage they should have, until it’s too late. Many insurance agents are  unfamiliar with the special needs of bike owners, and some are too interested in getting your business by “saving you money” than by selling you a good policy.

Most people feel pretty comfortable with their insurance. That is because most people have never had a significant claim. Your agent may be your friend – but your agent has nothing to do with your claim should you have a wreck.

Insurance companies are split into two personalities: the “money in” part (your agent) and the “money out” part (the claims adjusting group). If you have anything other than a very minor claim, you will quickly find out that the “money in” door is a lot bigger and a lot friendlier than the “money out” door. The minute you have a substantial claim, most insurance companies treat you with all the respect they would treat an “outside” person who is making a claim: as a stranger, not as a trusted customer.

What you don’t know will hurt you. I write this from the perspective of a lawyer that has represented many, many riders who have been in wrecks only to find out that their “full coverage” policy doesn’t begin to do what they need it to do. I have no financial interest in this advice – I’m not trying to sell you insurance. I am giving you real-world information to protect you against the ruin that will come to you if you are in a wreck and don’t have the kinds of insurance coverage and the amounts of insurance coverage that you need.

Kinds of Motorcycle Insurance Coverage

A typical insurance policy consists of the basic insurance agreement, plus amendments (changes that are usually specific to a state), plus endorsements (changes that are special to your policy). Amendments and endorsements may either add to the basic coverage or subtract from it.

The typical coverages that are available are:

  1. Bodily Injury Liability
  2. Property Damage Liability
  3. Uninsured/Underinsured Motorist Bodily Injury
  4. Uninsured/Underinsured Motorist Property Damage
  5. Personal Injury Protection
  6. Collision
  7. Comprehensive 
  8. Towing & Storage

So what is all this stuff??? The first thing you need to know is that there is no such thing as a standardized “full coverage” policy. There is such a thing as a “state minimum” policy, but it is about as worthless as training wheels on a rocket. Insurance policies are like tattoos – no two are alike. So let’s look at what kind of coverages there are, and what amounts of coverage you need.

We’ll work from the perspective of three typical wrecks.

Wreck A is nobody’s fault. You are coming home from Bike Night somewhere when a damn deer jumps out in front of you. You lay it down, skin up your bike, and break your leg (never mind what happens to the deer).

Wreck B is your fault. You are enjoying a beautiful day, and you fail to yield when you should have. You plow into the side of a minivan full of mom and dad and three kids. You aren’t hurt, but your new bike is toast. Unfortunately, the real problem is that the minivan has a big dent in the side and everyone in it is yelling “whiplash.” The next day, you get a letter from a lawyer you’ve seen on TV who says he’s going to sue you.

Wreck C is the monster. You are riding along minding your own business and some fool on his cell phone in an SUV “doesn’t see you.” As he changes lanes, he grinds you into the guard rail. The bike you just spent six months customizing is a mess, and you are hurt bad enough that you have to be taken by helicopter to the nearest trauma center. There you undergo four hours of surgery, four days in intensive care, a second surgery, six more days in the step-down unit, and go home to several months of physical therapy and rehab – all while you are off work. You’re going to have scars and a limp for the rest of your life. But best of all, the SUV driver “forgot” to make his insurance payment, so his insurance was cancelled, and his personal net worth is whatever cash he has in his wallet that day.

Let’s start with what the State of Washington requires you to have. If you want to “be legal,” you only need to have coverages in the amount of:

  • $25,000 for bodily injury or death of one person in any one accident;
  • $50,000 for bodily injury or death of any two persons in any one accident;
  • $10,000 for injury to or destruction of property of others in any one accident.

That’s all. Beyond that, if you have a loan on your bike, the almighty bank will probably require that you have enough Collision Coverage to pay off the loan if the bike is totaled. All the rest is up to you.

Now let’s look at Wreck A. With the “state minimum” policy + standard Collision Coverage, the only thing that will apply is the Collision Coverage. Hope you have health insurance! Hope it pays in the event of an accident! If your bike is damaged, but not totaled, be prepared to be without it for a long time; worse, if it is “totaled,” I hope your idea of what the bike’s “fair market value” is matches the insurance company’s idea of the FMV (more about this below).

Wreck B: With the “state minimum” policy + standard Collision Coverage, you have all the problems of Wreck A, but now you have a couple of nasty new problems. Your Liability Coverage now kicks in. BUT – the estimate to fix the minivan is $13,000, plus the cost of the rental car while the mini is in the shop – another $1,000. The estimate to “fix” the personal injury claims of the five people in the van is $18,000 each. Since you have Property Damage Liability limits of only $10,000, you get a bill for the extra $4,000 on the van. Ouch. But you have Bodily Injury Liability Coverage, right? Yes, but – you only have $25,000/$50,000 limits. Here, that means that any one person in the van can get a maximum of $25,000. So you’re good, right? No. Because five times $18,000 equals $90,000. So you get a bill for $90,000 minus your maximum limits of $50,000. You are personally on the hook for $40,000 (plus the $4,000 for the property damage). Know a good bankruptcy lawyer???

Wreck C: Here, with the “state minimum” policy + standard Collision Coverage, you are really, really screwed. Your bike loan will get paid off, maybe, but that won’t matter because you are on the one-way road to bankruptcy, whether you know a lawyer or not. That cellphone-talkin’ idiot has just cost you anywhere from $100,000+ in medical bills and $15,000+ in lost wages – and NO ONE is going to pay you ANYTHING.

You say “that can’t be right!” But the fact is, the idiot will never pay you a dime, because he will just go file bankruptcy himself! And with a “state minimum” policy you don’t have ANY coverage that helps you! If you don’t have health insurance, YOU are going to get a bill for that $100,000+, and if you do have health insurance, your deductibles and co-pays may leave you with balances you can’t begin to pay. Yes, you may lose your home and your car and everything else because you couldn’t make the payments while you had no income. No, there is no magic “fund” out there to pick up the slack. And all the money and time you put into making your bike beautiful is just g-o-n-e.

Now, really, did your friendly insurance agent explain all that to you while he was trying to save you 15% in 15 minutes?

Taken from: What you Need to Know about Motorcycle Insurance


What You Need to Know About Personal Injury Protection (PIP) Insurance

Posted on Saturday, March 7th, 2020 at 4:04 pm    

Personal Injury Protection (“PIP”) insurance is one of the cheapest and most important types of insurance you can purchase.  Everyone should have PIP insurance.  It is as simple as that.

PIP insurance protects you and the passengers in your car if you are injured in a collision.  It doesn’t matter who is at fault for the collision.  PIP insurance should cover you even if you cause the collision.  It also covers you if you are a pedestrian, a passenger in someone else’s vehicle or if you are riding a bicycle.  PIP insurance is one of the most comprehensive and important types of coverage you can buy – and, if you don’t have it, you will be sorry that you didn’t purchase it.

Here is what PIP insurance will do for you – it will pay benefits for:

  • Medical treatment you seek for injuries you suffer as a result of the collision
  • Limited wage loss benefits
  • “Loss of Services” benefits for things that you are unable to do due to your injuries
  • Funeral benefits

There are, of course, limitations and fine print.  Here are some of the limitations that generally apply to most PIP insurance policies:

  • Medical care must be received within 3 years from the date of the collision
  • Medical care must be “necessary” to treat injuries you suffered
  • The cost of the medical care you receive must be “reasonable”
  • The medical care must be provided by a licensed healthcare provider
  • You must be out of work for two continuous weeks as a result of your injuries before you are eligible for PIP wage loss benefits
  • Wage loss benefits last for only 52 weeks
  • Wage loss is payable at only 85% of your regular wage with a limit of $200.00 maximum payable per week
  • You must be able to prove that you were receiving wages before the collision and the amount of those wages
  • The person who performs the “services” you are unable to do may not be a member of your household
  • The daily limit on the amount you may be reimbursed for “services” is a maximum of $200.00 per week up to a maximum limit of $5,000.
  • You must provide the name, address, phone number, and Social Security Number for the person who performs your “services”
  • You may need to have a doctor’s note verifying that you are unable to perform the “services” yourself as a result of your injuries
  • Funeral benefits are limited to a maximum of $2,000.00

You may be thinking “But I have health insurance, why do I need PIP?”  The simple fact is that PIP insurance has many important benefits that you simply can’t get from your health insurance policy.  Here are some of the benefits of PIP insurance:

  • No preauthorization requirement
  • No co-pays
  • No deductible
  • PIP insurance pays 100% of the medical bill
  • You may see any healthcare provider you want
  • You do not need a prescription in order to see a massage therapist, physical therapist, etc.

So – how much PIP insurance do you need?  There are three basic levels of PIP insurance sold in Washington.  The lowest level is $10,000.  This means that PIP insurance will pay up to $10,000 per person who is injured.  The second level is $35,000.  The third level is $100,000.

We think you should have at least $35,000 in PIP coverage.  The cost of healthcare is rising.  What if you were seriously injured in a collision and were transported to the hospital by ambulance and you had an MRI at the hospital and then needed to see your doctor and possibly have surgery afterwards?  If you had only $10,000 in PIP coverage, it probably would have run out while you were at your doctor’s office, leaving you to find a way to pay for the surgery yourself.  Even if you have health insurance which will start paying after your PIP is exhausted, you will still have a deductible, co-pays, preauthorization delays, and may be limited in the choice of your doctor or hospital.

One more important thing for you to know – if someone else caused the collision, neither that person nor their insurance company will pay you one dime until you are ready to settle your claim!  This means that they will not pay any of your medical bills while you are getting treatment, regardless of how badly you are injured, how little money you have, how much money or insurance coverage the other person has, or how much at fault the other person is.  In other words, you could be seriously injured by a drunk driver who has a $1 million insurance policy and need surgery, but that drunk driver won’t have to pay you a dime until you are ready to settle your case.  If you don’t have PIP insurance and cannot afford medical treatment, you will end up settling your case for far less than it is worth and you won’t be able to ask for more money if you later realize that your injuries are not fully healed.

The system may not seem fair to you, but this is the stark reality of the insurance world.  It isn’t fair and you have to protect yourself.

We strongly urge you to contact your insurance agent and purchase PIP insurance today.  It is one of the most important things you can do to protect yourself and your family.

The attorneys at Nelson Boyd have over 50 years of combined legal experience in representing injured people and fighting insurance companies.  If you have been injured, if you have an insurance claim, or if you just have questions about insurance coverage, please contact us at (206) 971-7601Nelson Boyd – We Care.  We Can Help.  www.nelsonboydlaw.com


What You Need to Know About Motorcycle Insurance

Posted on Saturday, September 10th, 2016 at 10:47 pm    

“I Have Insurance”

The fact that you have “some” insurance doesn’t really mean anything.

A lot of people don’t understand what insurance coverage they have, let alone what  insurance coverage they should have, until it’s too late. Many insurance agents are  unfamiliar with the special needs of bike owners, and some are too interested in getting your business by “saving you money” than by selling you a good policy.

Most people feel pretty comfortable with their insurance. That is because most people have never had a significant claim. Your agent may be your friend – but your agent has nothing to do with your claim should you have a wreck.

Insurance companies are split into two personalities: the “money in” part (your agent) and the “money out” part (the claims adjusting group). If you have anything other than a very minor claim, you will quickly find out that the “money in” door is a lot bigger and a lot friendlier than the “money out” door. The minute you have a substantial claim, most insurance companies treat you with all the respect they would treat an “outside” person who is making a claim: as a stranger, not as a trusted customer.

What you don’t know will hurt you. I write this from the perspective of a lawyer that has represented many, many riders who have been in wrecks only to find out that their “full coverage” policy doesn’t begin to do what they need it to do. I have no financial interest in this advice – I’m not trying to sell you insurance. I am giving you real-world information to protect you against the ruin that will come to you if you are in a wreck and don’t have the kinds of insurance coverage and the amounts of insurance coverage that you need.

Kinds of Motorcycle Insurance Coverage

A typical insurance policy consists of the basic insurance agreement, plus amendments (changes that are usually specific to a state), plus endorsements (changes that are special to your policy). Amendments and endorsements may either add to the basic coverage or subtract from it.

The typical coverages that are available are:

  1. Bodily Injury Liability
  2. Property Damage Liability
  3. Uninsured/Underinsured Motorist Bodily Injury
  4. Uninsured/Underinsured Motorist Property Damage
  5. Personal Injury Protection
  6. Collision
  7. Comprehensive 
  8. Towing & Storage

So what is all this stuff??? The first thing you need to know is that there is no such thing as a standardized “full coverage” policy. There is such a thing as a “state minimum” policy, but it is about as worthless as training wheels on a rocket. Insurance policies are like tattoos – no two are alike. So let’s look at what kind of coverages there are, and what amounts of coverage you need.

We’ll work from the perspective of three typical wrecks.

Wreck A is nobody’s fault. You are coming home from Bike Night somewhere when a damn deer jumps out in front of you. You lay it down, skin up your bike, and break your leg (never mind what happens to the deer).

Wreck B is your fault. You are enjoying a beautiful day, and you fail to yield when you should have. You plow into the side of a minivan full of mom and dad and three kids. You aren’t hurt, but your new bike is toast. Unfortunately, the real problem is that the minivan has a big dent in the side and everyone in it is yelling “whiplash.” The next day, you get a letter from a lawyer you’ve seen on TV who says he’s going to sue you.

Wreck C is the monster. You are riding along minding your own business and some fool on his cell phone in an SUV “doesn’t see you.” As he changes lanes, he grinds you into the guard rail. The bike you just spent six months customizing is a mess, and you are hurt bad enough that you have to be taken by helicopter to the nearest trauma center. There you undergo four hours of surgery, four days in intensive care, a second surgery, six more days in the step-down unit, and go home to several months of physical therapy and rehab – all while you are off work. You’re going to have scars and a limp for the rest of your life. But best of all, the SUV driver “forgot” to make his insurance payment, so his insurance was cancelled, and his personal net worth is whatever cash he has in his wallet that day.

Let’s start with what the State of Washington requires you to have. If you want to “be legal,” you only need to have coverages in the amount of:

  • $25,000 for bodily injury or death of one person in any one accident;
  • $50,000 for bodily injury or death of any two persons in any one accident;
  • $10,000 for injury to or destruction of property of others in any one accident.

That’s all. Beyond that, if you have a loan on your bike, the almighty bank will probably require that you have enough Collision Coverage to pay off the loan if the bike is totaled. All the rest is up to you.

Now let’s look at Wreck A. With the “state minimum” policy + standard Collision Coverage, the only thing that will apply is the Collision Coverage. Hope you have health insurance! Hope it pays in the event of an accident! If your bike is damaged, but not totaled, be prepared to be without it for a long time; worse, if it is “totaled,” I hope your idea of what the bike’s “fair market value” is matches the insurance company’s idea of the FMV (more about this below).

Wreck B: With the “state minimum” policy + standard Collision Coverage, you have all the problems of Wreck A, but now you have a couple of nasty new problems. Your Liability Coverage now kicks in. BUT – the estimate to fix the minivan is $13,000, plus the cost of the rental car while the mini is in the shop – another $1,000. The estimate to “fix” the personal injury claims of the five people in the van is $18,000 each. Since you have Property Damage Liability limits of only $10,000, you get a bill for the extra $4,000 on the van. Ouch. But you have Bodily Injury Liability Coverage, right? Yes, but – you only have $25,000/$50,000 limits. Here, that means that any one person in the van can get a maximum of $25,000. So you’re good, right? No. Because five times $18,000 equals $90,000. So you get a bill for $90,000 minus your maximum limits of $50,000. You are personally on the hook for $40,000 (plus the $4,000 for the property damage). Know a good bankruptcy lawyer???

Wreck C: Here, with the “state minimum” policy + standard Collision Coverage, you are really, really screwed. Your bike loan will get paid off, maybe, but that won’t matter because you are on the one-way road to bankruptcy, whether you know a lawyer or not. That cellphone-talkin’ idiot has just cost you anywhere from $100,000+ in medical bills and $15,000+ in lost wages – and NO ONE is going to pay you ANYTHING.

You say “that can’t be right!” But the fact is, the idiot will never pay you a dime, because he will just go file bankruptcy himself! And with a “state minimum” policy you don’t have ANY coverage that helps you! If you don’t have health insurance, YOU are going to get a bill for that $100,000+, and if you do have health insurance, your deductibles and co-pays may leave you with balances you can’t begin to pay. Yes, you may lose your home and your car and everything else because you couldn’t make the payments while you had no income. No, there is no magic “fund” out there to pick up the slack. And all the money and time you put into making your bike beautiful is just g-o-n-e.

Now, really, did your friendly insurance agent explain all that to you while he was trying to save you 15% in 15 minutes?

So what are all these kinds of coverage?

What DO you need so that you are protected from the nightmares? First, you need to really understand those eight kinds of coverage I listed above.

1. Bodily Injury Liability Coverage
Liability Coverage is for the damage you do to the other guy. When you run a stop sign and smash into somebody, your Liability Coverage steps in to take care of your legal responsibility to that other person. In a bodily injury claim (also known as personal injury claim), that is coverage for the other person’s medical bills, lost wages, and what is generally called “pain and suffering”. Also – and few people know this – your Liability Coverage pays for a lawyer to defend you if you get sued.

2. Property Damage Liability Coverage
This is Liability Coverage for the damage you do to the other guy’s vehicle or its contents, and for their “loss of use” claim (think “rental car”).

3. Uninsured/Underinsured Motorist Bodily Injury Coverage
If I can tell you one thing it is that you MUST understand the difference between Liability Coverage and Uninsured/Underinsured Motorists Coverage!

These types of coverage, also known as “UM” or “UIM” Coverage, are insurance for YOUR benefit. When some fool falls asleep at the wheel and drills you, and when that fool does not have any insurance (he is “uninsured”) or does not have enough insurance (he is “underinsured”) your UM/UIM Coverage will pay you for what his insurance would have paid you if he had insurance. Let me repeat that – if someone causes a wreck and doesn’t have any, or enough, insurance, your UM/UIM Coverage will pay what the other person should have paid, up to the limits of your  coverage.

This is a big deal. Although Washington law says you have to have insurance to drive, a LOT of people don’t have any insurance, and a LOT MORE don’t have very much insurance. But a lot of people scrimp on their UM/UIM Coverage to save money. DON’T! Uninsured/Underinsured Motorist Bodily Injury Coverage is for your medical bills, your lost wages, and your pain and suffering.

4. Uninsured/Underinsured Motorist Property Damage Coverage

Uninsured/Underinsured Motorist Property Damage is for the damage the fool did to your vehicle or its contents, and for your “loss of use” claim (think “rental car”). With this coverage, the deductible is limited by law to $250. This coverage can apply instead of Collision Coverage or in addition to it.

5. Personal Injury Protection (PIP) Coverage
Very few people understand what Personal Injury Protection is all about – and that’s a shame, because it is like liquid gold. This coverage pays for medical bills, funeral and burial bills, income continuation, and loss of services incurred because of an accident. PIP is a no-fault type of coverage. It does not matter how you got hurt – the other guy’s fault, your fault, no one’s fault.
Insurers providing automobile insurance policies must offer minimum personal injury protection coverage for each insured with benefit limits as follows:

  1. Medical and hospital benefits of ten thousand dollars;
  2. A funeral expense benefit of two thousand dollars;
  3. Income continuation benefits of ten thousand dollars, subject to a limit of two hundred dollars per week; and
  4. Loss of services benefits of five thousand dollars, subject to a limit of two hundred dollars per week.

You want this coverage! Your health insurance may pay some of bills from an accident, but
you may not have health insurance, or it may not pay for some types of treatment that you
need, or there may be deductibles and co-pays. The other guy’s insurance may pay the bills
in the long run, but usually not until the end of the case – which may be too late to save you
from bill collectors. If no one is at fault, PIP may be the only coverage under your policy that
pays anything. Trust me – PIP is one of the best, and relatively cheapest, coverages you
can have. Get it.

6. Collision Coverage
Collision Coverage kicks in when you wreck (“the upset or collision with another object of your covered cycle”). This coverage is no-fault, and covers the damage from almost any collision regardless of the reason (well. . . there are some exceptions written into every policy). BUT, what does “cover” mean? If you think it means you get paid what you think your bike is worth, you are dead wrong.

First, the difference between a wreck where your bike is “totaled” and where it is repairable: “Totaled” means the cost of fixing the bike is higher than the “value” of the bike. No matter how much you love your ‘ol Hardtail, if it would cost $12,000 to fix it, and it is only “worth” $8,000, it is going to the dump. Also, insurance only pays for your bike. Insurance companies have no responsibility to replace your bike.

What does “value” mean? It means “ACV” or Actual Cash Value (also known as “FMV” or Fair Market Value). ACV is the amount that someone would pay for your bike if you put it for sale in the paper or on e-Bay. Put on your “buyers” hat, and think what a stranger would pay for your baby. Odds are, it’s not what you think it is worth – but you may be stuck with the “stranger’s” value.

Since very few riders keep their motorcycle in its original condition, this “value” issue is often a big problem as to custom work, too – and one you may not even know about until it’s too late. The value of your bike is not cost plus the amount of money or effort you have invested. Putting $25,000.00 worth of paint and chrome on a $5,000.00 bike does not necessarily mean the end result is worth $30,000.00. It is a rare modification that results in a dollar-for-dollar return in the value. It does not matter how much you “have in it”, if someone walking up to the bike would not pay you as much as you “have in it”.

Most of the time, loss or damage to any custom equipment or paint/chrome, optional equipment, or added equipment not included as standard by the manufacturer is not covered (or is covered only up to a very low amount, say, $500) unless there is a specific endorsement to the policy.

Talk to your agent about this! Get the coverage you want and expect! There are special coverages or special policies available that will cover a bike and its accessories based upon an agreed value, or a value from an appraisal done before you wreck. This kind of coverage is not what you get in standard policies. If you haven’t dealt with this when you get your policy you may be in for a nasty fight after a wreck. These claims are very tough to fight in court, as a practical matter, because of the dollars involved and slow court calendars.

7. Comprehensive Coverage
Comprehensive Coverage takes care of damage to your bike from accidental losses other than those caused by a collision (fire, theft, etc.). However, “comprehensive” does not mean “everything.” There are often exclusions for many things, such as your clothes, your tools, or custom items. Helmets are often covered (although some policies are limited to a “Department of Transportation approved helmet”). Insurance companies, at least, believe it is in your best interest to wear a helmet and will “reward” you for wearing one.

8. Towing & Storage Coverage
You had to put it down. What now? You can’t just leave it by the side of the road. And after someone charges you to tow it somewhere, storage charges can be $20/day or more. These charges usually are not covered in your Collision Coverage or Comprehensive Coverage. Cover these risks by getting insurance for them.

How Much Coverage is Enough?

Remember – there is no such thing as a “full coverage” policy. The most anyone can ever be covered for by their policy is defined by the “limits” of the coverage. This works both ways. For Liability Coverage – you will only be protected against claims by others up to your liability limit. The rest of the “bill” comes out of your pocket – or your hide. For Uninsured or Underinsured Motorists Coverage – no matter how bad you are hurt, or what your case is worth, you will never get more than your UM/UIM Coverage limits.

How much is enough? For Liability Coverage, it is true that part of the answer to that question depends on how much you have to lose. But if you like your bike, your house, your paycheck and your driver’s license, you better insure against losing them. Typically, motorcycles do not do as much damage to the other guy as cars do. But if you put your bike through the door of a car at 60 miles an hour it does not take much for the people in the car to run up a small fortune in medical bills and lost wages, let alone their pain and suffering claim.

For Uninsured or Underinsured Motorists Coverage – remember – this is coverage for what happens to you. Do you want to sell your claim short? I can’t begin to tell you how many “million dollar” cases I’ve handled where the person only got a fraction of that, because that’s all the insurance there was. There is no “magic fund” out there to take care of you – you have to take care of yourself by having adequate coverage.

For Personal Injury Protection Coverage – This does depend somewhat on your health insurance picture. If you have great health insurance, you don’t need as much PIP. But what if you lose your job? What if your company “downsizes” your health insurance? PIP is cheap, and it is a life saver when you need it.

So how much insurance should you have?

In my opinion, you should not be on the road unless you have these minimums:

1. Bodily Injury Liability Coverage
$100,000/$300,000. This means One Hundred Thousand dollars for each person who is injured, up to a total of Three Hundred Thousand dollars for everyone hurt in one wreck. This may seem like a lot, but as I said, modern medical treatment is expensive – medical bills and lost wage claims alone can add up faster than you can imagine.

2. Property Damage Liability Coverage
The state minimum is $10,500. Are there any cars or bikes out there on the road worth more than that? Absolutely! Think about how many new cars cost more than $25,000 these days, and you will see that you need at least that much in Property Damage Liability Coverage, and you ought to have more to be really safe.

3. Uninsured/Underinsured Motorist Bodily Injury Coverage
Think back to “Wreck #3.” How much would you want to be paid for that experience? That’s how much UM/UIM Coverage you should have. The law says that your UM/UIM can’t be higher than your Bodily Injury Liability limits, so high UM/UIM limits aren’t cheap. But, again, $100,000/$300,000 should be the smallest policy you consider.

4. Uninsured/Underinsured Motorist Property Damage Coverage
What’s your bike worth? Uninsured/Underinsured Motorist Property Damage is not as important if you have Collision Coverage, but there may be some price advantages to having this – ask your agent.

5. Personal Injury Protection (PIP) Coverage
Don’t even leave your house without $50,000 in PIP. Unless you have great health insurance. Or unless you like paying medical bills out of your own pocket.

6. Collision Coverage
You need to cover the real value of your bike, cover the value of your modifications, cover the value of your accessories, and cover the value of your loan. Why end up “in the hole” when an accident happens? Unfortunately, there is a pretty good chance that at some point in your riding career you’ll need this coverage. Be sure you understand what you have before you need it. And don’t try to save a buck by having a high deductible. Do you really want to have to come up with the first $1,000 or more after a wreck? Odds are you’ll have plenty of other needs for that money.

 7. Comprehensive Coverage
Ditto Collision Coverage.

8. Towing/Storage Coverage
This coverage isn’t that expensive, and it covers bills that are really annoying to have to pay out of your pocket. Get at least $100 or so for towing, and 30 days worth of storage.

The Policy You Ought to Have

If that’s the minimum, what’s a really solid policy look like? It looks like the above, but with these changes:

  • Bodily Injury Liability Coverage and Uninsured/Underinsured Motorist Bodily Injury Coverage: $250,000/$500,000, with a $1 or $2 million “umbrella” on both types of coverage (see below);
  • Property Damage Liability Coverage of $50,000, and;
  • Personal Injury Protection of $100,000.00.

Yeah, the ideal policy is going to cost you some money. But it won’t cost you anything like what a wreck will cost you if you don’t have enough insurance. At the next “bike night” look around. See anyone who has been in a wreck? It happens – and it happens to bikers way more often than it should. Protect yourself. The last thing you need as you are recovering from a wreck is the worry of bill collectors, lawyers, and bankruptcy.

“Umbrella” coverage gives you a lot of extra coverage for not that much more money – talk to your agent about it! You usually have to have pretty high limits on the underlying policy, but it is worth it when you need it.

There are a lot of good insurance companies and good insurance agents out there. Some know bikes and some don’t. Several companies are going out of their way to attract bike owners as customers. Talk to several agents. See if they know what you are talking about when it comes to the special needs of bike owners and riders. But most of all – protect yourself. You don’t know despair until you have been laying in a hospital bed because some idiot ran over your bike and you get a letter telling you that they didn’t have any insurance and/or they just filed bankruptcy. Or until you get sued for way more money than you have coverage for. If you don’t take care of yourself, no one else will take care of you. Ride to live and live to ride – without the worries of what will happen if you have a bad day.

Download Nelson Boyd Law’s “What You Need to Know About Motorcyle Insurance” Article as a PDF


Do You Have Enough Auto Insurance?

Posted on Friday, July 1st, 2016 at 10:00 am    

Although everyone is different and has different needs and financial considerations, the following are some general tips about how to protect yourself and your family.

Download this publication as a PDF.

  • Liability Insurance

    This insurance covers people you injure with your automobile. Washington law requires that you purchase insurance that will pay a minimum of $25,000 per person and $50,000 per collision. If you injure someone and they file a claim against you, your insurance company will hire an attorney (at no charge to you) to represent you and protect your interests. If you do not have enough insurance to fully compensate the person you injured, you may need to hire (and pay for) an attorney to protect your personal assets. If you injure someone in a collision and you do not have this insurance on the date of the collision, you may receive a traffic citation, a fine, or have your driver’s license revoked. In addition, when you attempt to purchase insurance thereafter, it will probably be very expensive. In other words, if you don’t have insurance, don’t drive!   We recommend that you have at least $100,000 in Liability Insurance.  If you have an above average income, own a home or have other assets, you should have at least $250,000 in Liability Insurance. 

     


     

  • Personal Injury Protection (PIP) Insurance

    This insurance pays your medical bills from a collision. In some cases, it may also cover your passengers, pedestrians, and bicyclists. This insurance pays benefits regardless of fault. In other words, even if you cause a collision, PIP insurance may pay for your medical treatment. Even if you have health insurance, you should purchase PIP insurance. PIP insurance is better than health insurance because there is no deductible, no co-pay, and no pre-authorization requirement. You may choose any licensed healthcare provider to treat you, even alternative therapies such as chiropractic treatment, massage therapy, physical therapy, and acupuncture. PIP insurance is very affordable. PIP insurance also provides limited wage loss benefits, funeral benefits, and loss of essential services to compensate for things such as babysitting, lawn care, and house cleaning. Because the insurance company representing the person who caused the collision will not pay your medical bills until you are ready to settle your entire case, you need PIP insurance. We recommend that you have at least $35,000 in PIP Insurance.  If you have an above average income, own a home or have other assets, you should have at least $100,000 in PIP Insurance.


 

  •  Uninsured/Underinsured Motorist (UIM) Insurance

    Unfortunately, not everyone takes responsibility for his or her actions. Some people don’t purchase even the minimum amount of liability insurance required by the State and other people cause injuries that exceed the amount of insurance coverage they purchased. Because you cannot rely on other people to adequately insure you against the harm they may cause, you must take responsibility for yourself and purchase sufficient UIM insurance to fully compensate you for injuries you may suffer through someone else’s fault. If you are injured as the result of someone else’s actions, your UIM insurance may compensate you in the event the other person’s insurance is not sufficient, or in the event they do not have any insurance. In some cases, it may even cover you if you are injured as a pedestrian, bicyclist, or if you are a passenger in someone else’s car. Although it may seem unfair that your insurance company would have to pay you, you are paying for this insurance coverage. It isn’t something your insurance company is doing as a favor to you. UIM insurance is absolutely crucial. You cannot afford to be without it! We recommend that you have at least $250,000 in UIM Insurance.  If you have an above average income, own a home or have other assets, you should have at least $500,000 in UIM Insurance. 

  • Umbrella Insurance

    Umbrella policies float on top of your other insurance policies to compensate people who you may unintentionally injure at home or with a vehicle. This insurance provides insurance coverage in addition to your underlying policy to protect your assets from being seized by someone you may have injured. These policies vary from insurer to insurer. If you can purchase an umbrella policy that includes UIM insurance, it is a good idea to do so. If you have an above average income, own a home or have other assets, you should have a $1,000,000 Umbrella policy. If your net worth is over $1,000,000, you should have an even bigger Umbrella policy.


Personal Injury Protection (PIP) Insurance

Posted on Sunday, April 3rd, 2016 at 7:12 am    

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Although everyone is different and has different needs and financial considerations, here is a general tip about how to protect yourself and your family.

This insurance pays your medical bills from a collision. In some cases, it may also cover your passengers, pedestrians, and bicyclists. This insurance pays benefits regardless of fault. In other words, even if you cause a collision, PIP insurance may pay for your medical treatment. Even if you have health insurance, you should purchase Personal Injury Protection (PIP) insurance. PIP insurance is better than health insurance because there is no deductible, no co-pay, and no pre-authorization requirement. You may choose any licensed healthcare provider to treat you, even alternative therapies such as chiropractic treatment, massage therapy, physical therapy, and acupuncture. PIP insurance is very affordable. PIP insurance also provides limited wage loss benefits, funeral benefits, and loss of essential services to compensate for things such as babysitting, lawn care, and house cleaning. Because the insurance company representing the person who caused the collision will not pay your medical bills until you are ready to settle your entire case, you need PIP insurance. We recommend that you have at least $35,000 in PIP Insurance.  If you have an above average income, own a home or have other assets, you should have at least $100,000 in PIP Insurance.

If you have questions about your insurance coverage, give us a call at (206) 971-7601.  Nelson Boyd  – We Care.  We Can Help.  www.nelsonboydlaw.com


Who Will Pay My Medical Bills?

Posted on Monday, January 27th, 2014 at 6:31 pm    

One of the first things that people worry about after they have been injured is “who will pay my medical bills?”  The answer might surprise you.

According to Washington law, the insurance company that insures the person who injured you does NOT have to pay for your medical treatment until you are ready to settle your case.  Since you should not settle your case until you have recovered from your injuries and know whether you will need future medical treatment, this leaves most people in a bind.  What do they do between the time they are injured and the time they are ready to settle their case – especially since this gap may be months or even years?

If you were injured as a result of an automobile collision (regardless of who was driving or was at fault) or a car hit you while you were a pedestrian or riding your bicycle, your Personal Injury Protection (“PIP”) insurance should pay your bills.  Everyone who has a car should have Personal Injury Protection (“PIP”) insurance.   If you do not have PIP insurance (or if you aren’t sure whether you have it), RUN, don’t walk, to the phone and call your insurance agent!!  PIP insurance is one of the best types of insurance you can purchase.  There are different levels of insurance you can purchase.  We strongly recommend that you purchase at least $35,000 worth of PIP insurance.

PIP is extremely inexpensive and will pay for your medical treatment if you are injured as the result of an automobile collision, regardless of who was driving and regardless of who was at fault.  Unlike health insurance, there is no deductible, no co-pay, no-preauthorization requirement, and you can choose your own healthcare providers.  The only requirements are that (1) the treatment is received within three years from the date of the collision; (2) the treatment is provided by a licensed healthcare provider; (3) the cost of the treatment is reasonable; and (4) the treatment is necessary to treat injuries you suffered as a result of the collision.  In addition, it provides a small reimbursement for funeral expenses, lost wages, and loss of services (childcare, lawn care, household care, etc.).

If you do not have PIP insurance or were injured as a result of something other than an automobile incident, your health insurance should pay your medical bills.  However, you will have to pay your deductible and co-pays when you receive your medical treatment.  In addition, your health insurer will still require that you reimburse it, but those laws may be much less favorable to you that PIP reimbursements, depending on your insurance plan.  In some cases, your health insurer is entitled to demand that you pay for 100% of the benefits it paid, regardless of whether you are fully compensated for your injuries.  For this reason alone, it is important that you purchase PIP insurance so that you can use that if you are injured as the result of an automobile collision.

If you are injured at someone’s home or on someone else’s property, you may be eligible for limited payment of medical bills under the property owner’s liability insurance, even before your case is settled.  Most property owners automatically carry something known as “Med Pay.”  This insurance will usually pay for a relatively small amount (often $5,000) of medical treatment if you are injured on someone else’s property.  However, receiving these benefits is not an admission of fault by the property owner.

We hope this article has answered your questions about how you will afford medical treatment.  At Nelson Boyd, we have years of experience in dealing with all types of insurers and injuries.  We know how to maximize our clients’ recovery while helping them get the medical treatment they need.  If you have been injured, give Nelson Boyd a call at (206) 971-7601. Contact us today!