Motorcycle Insurance Articles
3 Commonly Misunderstood Terms In A Standard Motorcycle Insurance Policy
2010-12-05
When it comes to understanding your motorcycle insurance policy, there are a great many different motorcycle insurance terms within a standard policy to consider. Some terms such as "Policyholder" and "Premiums" are relatively straight-forward and self-explanatory. However, there are other motorcycle insurance terms which reference complicated issues, especially with regard to coverage issues and claims against the policy.
"Insurance follows the vehicle, not the driver."
This phrase is commonly spoken in the world of insurance, and it is considered a coverage issue. In short, when an insured driver is operating another person's vehicle and is involved in an accident, the insured's policy is considered "secondary" and not "primary". The insurance policy that belongs to the owner of the vehicle which was involved in the accident is considered primary, and it would be the first to pay. Only if the vehicle were uninsured or if the primary insurance lacked a particular coverage such as Collision, then would the secondary policy pay.
"The driver of your vehicle was the primary cause of the accident and so they are considered to be the at fault party."
References to "being at fault" or the "at fault party" are motorcycle insurance terms commonly used in claims. The majority of states are those which assign fault to one driver or another when a collision occurs. Typically, this decision is based upon the loss facts and the application of the state's vehicle code to the driver's actions. Your insurance carrier is charged with conducting a thorough investigation into the accident before arriving at such a determination.
"Because your driver is at fault for the accident, your motorcycle insurance policy is liable for the other party's damages."
References to "liability" or "being liable" to another party are also motorcycle insurance terms used frequently in claims. If one driver were to rear end another car, then that driver would be considered at fault for traveling at an unsafe speed for traffic conditions. Because it was his fault, the driver of the rear car would be liable to the front car for all damage that it may have incurred. This damage would be paid for by the policyholder's property damage liability insurance. If the driver of the other vehicle or his passengers were injured, then the insured's Bodily Injury Liability would be the relevant coverage to pay.
A thorough understanding of the motorcycle insurance terms used within your motorcycle insurance policy will allow you to be better prepared when speaking with your insurance company. Issues involving both coverage and claims are serious matters which can have extensive ramifications, especially for your finances. It is worth your time to be ready.