Uninsured / Underinsured Insurance Coverage for your New Motorcycle in Tennessee
You have just purchased a brand new motorcycle and are very excited to get it on the road. Please be sure to remember to do two things when getting insurance coverage for your new bike:
First, make sure you always have insurance coverage for your motorcycle. Don’t ride without it! Just like your automobile, you must have proof of insurance when riding a motorcycle. If you plan on riding on city streets or public highways, you must have at least $25,000 in liability coverage, in the event that you cause an injury to another. Along with this, you must have at least $50,000 of liability coverage for injury or death involving more than one person.
Second, it is as important that you have Uninsured/Underinsured Motorist (UIM) coverage. Why is this important? Suppose an uninsured or underinsured motorist is the cause of an accident that causes you injury. If the wrongdoer has no insurance, the purchase of UIM coverage protects you. If the wrongdoer has only $25,000 – $50,000 coverage and your medical bills are between $15,000 – $25,000, you will need to have at least $50,000 – $100,000 of UIM coverage. The value of the case we have just described would probably be greater than $25,000 (if you miss work, experience decreased enjoyment of life, and so on), so that is why you need more UIM coverage than the minimum of $25,000.
Uninsured/Underinsured Motorist coverage is very, very cheap. You would not believe how cheap it is! There are many variables in determining how much UIM coverage would cost you. Some of those variables are:
- your age
- where you live
- your credit
- the type of bike you have
- the safety features on your bike
- the type of engine you have
- your driving record
Obviously these are not all the variables that an insurance company would consider, but they are some of the main ones.
I recently spoke with an insurance sales agent to find out the cost of an UIM coverage policy in Tennessee. Of course, depending upon the variables, your premium for your liability insurance would be somewhere between $500 – $3,000, again depending on the type of bike you have, etc. What is, however, a near certainty is that the cost of UIM motorist coverage is somewhere between 6%-8% of your yearly premium. Let’s say your premium for your motorcycle insurance is $1,000 per year. You would therefore be looking at $60 – $80 extra per year to purchase UIM coverage. It’s worth it – believe us!
Please keep these things in mind when you buy your new motorcycle. It can be the difference between a recovery in a case against a wrongdoer without insurance and NO recovery at all if you don’t have UIM coverage.
We’re currently writing a book on motorcycle safety and how injury claims work for motorcyclists in Tennessee. Be on the lookout for this new book in 2017!