Motorcycle accidents are rarely “minor.” While you might walk away from a fender-bender in a car, even a low-speed crash on a bike can result in serious injuries.
Many riders face not only serious physical injuries, but also lost income, costly bike repairs, and long and painful recovery periods. It is common for bikers to be dealing with catastrophic injuries, missing weeks or months of work, and struggling to stay afloat financially after a crash.
Many wonder why, after all they have endured, they are not entitled to million-dollar settlements for their losses. The answer is, unfortunately, quite simple: insurance.
Any accident is limited to the at-fault party’s available liability insurance coverage and your own uninsured motorist (UM) and underinsured motorist (UIM) coverage, provided you opted for it when you purchased your policy. New Jersey and Pennsylvania only require you to carry a minimum of $15,000.00 in liability coverage. Even if the at-fault party has considerable assets, there is no guarantee you will be successful targeting their house, 401(k), inheritance, or other property either. Even more concerning, New Jersey’s “Dollar-a-Day” insurance option for low-income drivers does not include liability coverage, meaning if you are hit by someone with this policy, there may be no insurance available to cover your injuries, and your chances of recovering compensation through a lawsuit are slim.
To protect yourself in the event of an accident and serious injuries, the only true solution is to purchase higher rates of uninsured and underinsured motorist coverage on your own motorcycle insurance policy. Purchasing the minimum legal amount is exactly what you pay for in the end. These differ slightly between New Jersey and Pennsylvania.
Uninsured and Underinsured Motorist Coverage in New Jersey
In New Jersey, you can purchase UM and UIM coverage up to the amount of liability coverage you have. This means that if you are only carrying the required state minimum of $15,000, you need to increase your liability coverage in order to increase the UM and UIM coverage.
If you can afford the premiums, increasing your liability coverage to $50,000 or $100,000 (or more) in order to purchase the same amount of UM and UIM coverage provides you the best overall protection in a motorcycle accident.
Uninsured and Underinsured Motorist Coverage in Pennsylvania
Pennsylvanians fare a bit better. In 2020, the Pennsylvania Supreme Court ruled that drivers can stack UM/UIM coverage – motorcycles and vehicles alike – unless you specifically waive that right in writing. This means you can potentially collect UM/UIM benefits not just from your motorcycle policy, but also from your auto policy. For example, if you carry the state minimum of $15,000 in UM/UIM coverage on two motorcycles and two cars, and you have not waived stacking, you could be eligible for up to $60,000 in total coverage ($15,000 × 4).
Stacking must be explicitly included in your policies, and you should never sign a waiver without fully understanding the potential consequences should you have an accident.
Ride safe and keep it on two wheels!
If you or a loved one has been injured in a motorcycle accident, call Brad Tabakin, Esq. at Bikers Have Rights at 215-525-1616 or 877-333-0300 or complete an online form to schedule a free consultation. Located in Plymouth Meeting, Pennsylvania, Bikers Have Rights serves clients throughout Pennsylvania and New Jersey.