INSURANCE 101 – Segment 4

We’ve talked about….UM= Uninsured Motorist Bodily Injury. Now let’s move on and talk about UIMBI, Underinsured Motorist Bodily Injury. UNDERINSURED MOTORIST BODILY INJURY COVERAGE…pays benefits for the BODILY INJURY or Death of you and any passengers in, or on, your vehicle if you are involved in an accident caused by a driver who has some Insurance, but not enough to cover the Bodily Injury losses that result from the accident.

30/60/25..is the Texas State Minimum Liability required. Say the Driver that hit you had these limits of Liability,  but Your UM/UIM Coverage was …100/300/50.  If your resulting medical costs were….$100,000 for you and your passenger…That would mean if the Driver that hit you was at Fault his insurance would pay up to …$60,000 for your medical costs and your UIM….would kick in the balance of …$40,000. Note: you can also be stuck with the bills from a driver who has NO INSURANCE at all. In this case, you’ll need UNDERINSURED MOTORIST COVERAGE to pay your expenses. Here’s where it gets more complicated. You have to have UNDERINSURED MOTORIST COVERAGE LIMITS……..HIGHER THAN….the limits of the at-fault Drivers Bodily Injury LIABILITY Limits, OR YOU MAY not RECEIVE BENEFITS. EXAMPLE….let’s say you are in an accident and you are NOT at fault, and the at-fault Driver has ..$50,000 Bodily Injury Coverage. Assume your UIM is only $25,000, but your medical costs are …$100,000. Because your UIM coverage is less than the at-fault drives Liability, you would NOT BE ABLE TO COLLECT FOR DAMAGES. If, however UIM coverage was ..$100,000 you would be ABLE TO COLLECT for damages over $50,000 up to $100,000 Medical loss.

MORAL OF THE STORY….NEVER DRIVE WITH LIABILITY LIMITS (UNDER) 100/300/50 AND MATCH THE …UM/UIM WITH THE SAME LIMITS…ALWAYS !… you also get a discount for having Higher Limits.

If you have any questions…please feel free to call me for your personal evaluation. 1 972 540-1900.

In the next blog…..we’ll talk about.. PD Coverage

Sincerely,

Wayne “Sweetheart” Shaw
Strictly Cycles Insurance

INSURANCE 101 – Segment 3

UM/UIM + PD

Let’s start with the LETTERS….UM= Uninsured Motorist Bodily Injury.

UNINSURED MOTORIST BODILY INJURY COVERAGE….. covers a victim’s expenses, lost wages, and other injury related expenses in an instance where the other driver is NOT INSURED. This coverage applies ONLY, if the other party is found to be AT-FAULT…for the incident also.
So, you can collect for UM….ONLY IF, the other party ( he or she) is AT FAULT in the incident AND DOES NOT HAVE ANY INSURANCE. We are talking about Medical and Expenses here for the PERSON, that was hit by the Uninsured Vehicle. Property Damage comes in play later.

It is a crime in TEXAS for Individuals to not have LIABILITY coverage (for their Owned Vehicle) he or she is operating.

When an individual flees the scene of an accident WITHOUT leaving sufficient information to identify him or herself, the individual is considered …UNINSURED…for the purposes of an uninsured motorist provision. However, if a positive ID of the License Plates in a hit and run accident will often be considered by Insurance Companies sufficient information to identify the negligent Hit and Run driver. Such identification will often lead to the denial of an uninsured motorist claim, as insurance companies will often litigate the claim, bringing in the registered owner of the vehicle with the matching plates, even when that person denies involvement in the accident.

If you have any questions…please feel free to call me for your personal evaluation at (972)540-1900.

In the next blog…..we’ll talk about..UM/UIM + PD Coverage

Sincerely,

Wayne “Sweetheart” Shaw
Strictly Cycles Insurance

INSURANCE 101 – Segment 2

Well we’ve talked about what Liability Coverage is and what is the basic amount for Texas, (30/60/25), you may go up to $500CSL (Combined Single Limit) or 500/500/500. First and foremost, you need to know, LIABILITY COVERAGE…is the cheapest and best protection for your personal wealth, so error on the high side. Now lets look at what we should consider for different Vehicles and Water Craft.

MOTORCYCLES….Generally, we do not do much damage to others on a bike, unless we run into a Girl Scout Troup. So, 30/60/25 is your basic and probably will suit most Bikers. If you have an Umbrella Policy then you must maintain…..$250/500/100, for the Umbrella minimum on all Registered Motor Vehicles.

AUTO’S….Here the “Higher is Better” rule applies and the higher you go the Bigger Discount your Carrier will give you. Here, based on the average person, I would recommend no less than ….50/100/50. The $50,000 Property Damage will cover many of the vehicles on the road. Where your $25,000 Minimum Property Damage will cover very few…and you’ll pay the difference.

HOME…..Minimum….$300,000.

WATER CRAFT……..Lots of funky things happen on the water. If you are on a lake with a lot of high value boats. Raise your Liability to cover the damage say 50/100/50 but……30/60/25 ….is OK for most Water Craft.

If you have any questions…please feel free to call me for your personal evaluation at (972 ) 540-1900.

In the next blog post, we’ll talk about UM/UIM + PD Coverage

Sincerely,

Wayne “Sweetheart” Shaw
Strictly Cycles Insurance

INSURANCE 101 – Segment 1

Sadly, not many people know even the basics of Insurance and rely mostly on their agent to provide what is needed.  Unfortunately, many agents do not provide you what you really need, so you need to know the basic to understand what is the best coverage for you.  Following these segments to learn more…

LIABILITY COVERAGE – Covers OTHER PEOPLE/PERSONS for Medical and Property Damage compensation in the event of an Accident.  30/60/25 is the Texas State Minimum allowed to operate a licensed motor vehicle on a public street.  Let’s see what that covers…   30/ = $30,000 Medical Coverage for one person that is injured in another vehicle.  60/ = $60,000 Medical Coverage for more than one person (say a multi-vehicle accident) or more than one person in the vehicle.   25/ = $25,000 is the Property Damage Coverage, for the person’s vehicle/property.

If you have any questions, please feel free to call Wayne for a personal Texas motorbike insurance evaluation at (972)540-1900.

In the next segment, we’ll talk about what amount of LIABILITY coverage is appropriate for your protection.

Sincerely,

Wayne “Sweetheart” Shaw
Strictly Cycles Insurance