Coverage #1: Is Compulsory in Massachusetts with limits of $20,000 per person and $40,000 per accident. This coverage does not cover you on private ways or on roads out of Massachusetts, or include your passenger; and you're not able to increase the limit. (This coverage can be bought under Optional Bodily Injury, Part #5, and the limit can be increased to cover your assets).

Coverage #2: Personal Injury protection, another compulsory coverage, hereafter known as PIP; note that there is no PIP Coverage while you are on your bike. Meaning that, the minute you position yourself on your motorcycle, the PIP goes out the window!! Yes, even while you're stopped and not moving; even if the bike is locked, you are not covered under the PIP portion of the policy. You are however, covered if you are standing beside your bike and someone knocks the bike over on you, or you walk away from your bike and are hit as a pedestrian. You'll note that the premium charged for this coverage is much less than the charge for your automobile. The limit available is $8000; and I don't recommend taking a deductible here, the savings just isn't worth it.

Coverage #3: Is Liability Coverage for Uninsured Automobilist, with a compulsory limit or $20,000/40,000. I recommend you buy as much as you can afford, and that state will allow with limits of at least $100,000 Per Person, $300,000 per accident; and strongly suggest limits of $250,000 Per Person, $500,000 Per Accident, or more even. The cost to increase in minimal. This coverage will cover you in the event of a loss where Bodily Injury in involved; and the other party has no insurance. If you don’t give yourself sufficient limits here, you will have nowhere to go to recuperate your loss; and could ruin yourself financially!

Coverage #4: Is Property Damage. This covers other people’s property; be it their car, their bike, their home, a street light, etc. The statutory limit mandated by the state is $5000. I recommend that you purchase at least $100,000, and more if you can afford it, and get it. In Massachusetts we can now purchase up to $250,000, and the cost for the increase is under $10.00! It's one of the best buys that there is in the industry. This coverage will pay for damages you cause to other people's property. If you are the last bike in a pileup, you could be held responsible for the damage to all the other vehicles; which could mount up rather quickly. If you don’t have sufficient limits, you’ll have to pay the damages out of pocket. That usually means liquidating your assets to pay. For $10.00 a year, why put yourself in that position?

Coverage #5: Is optional Bodily Injury and will cover Bodily Injury you incur to others. This is the portion of the policy that responds to lawsuits. As in #3, buy as much as you can afford, and as much as the state will allow. Protect your assets and make sure you don't have to liquidate them to satisfy a claim. ( I don’t want to hear that you’ve got your home protected by the Homestead Act, that will not help! I’ll address that at the bottom of this article.) Limits of $250,000 Per Person, $500,000 Per Accident is a nice place to start these days; and the cost annually is not prohibitive.

Coverage #6: Medical Payments: This is currently the only no-fault coverage left in Massachusetts. There's been a change this year; effective January 1st, and you'll be able to purchase more coverage in increments of $5,000 up to $50,000; and that premium will be approximately $316.00 annually.  ( You'll note the premium here has increased significantly, which means that the coverage gets used.) That will help pay for medical expenses in the event of Bodily Injury. Please remember these limits will be shared with your passenger; and most likely not picked up by your health carrier. (See HIPPA Act 1996).  Another item to be addressed at the end of this article.  If your health carrier does pay, expect to have a lien slapped against any proceeds you receive from the motorcycle insurance policy, as they expect to be reimbursed! It works the same way with automobiles, as well.

Coverage #7: Collision will cover your bike in the event of a "Crash" or Collision. To keep the cost down, I suggest entertaining a higher deductible of $1,000 as it will save you some money. If cost is not a concern, buy a lower deductible and make sure you also include the waiver or deductible so if the accident is not your fault, and you have the information on the other party, you can get your deductible back. Be sure to insure your bike for its proper value. Failure to do so could result in a lesser payment in the event of a claim. Motorcycles are written on an ACV "actual cash value" basis taking into consideration depreciation; so if you've customized your motorcycle to the point where it's worth more than the actual cash value; it would make sense to get an appraisal, and have your bike written on a "Stated Value".  (See Tutorial on the website about  when & why an appraisal).

Coverage #8 Is Limited Collision. If you’ve taken full collision, you cannot opt to take this. It’s one or the other. Limited collision, by virtue of its name, is a very limited coverage; and there is certain criteria involved to be able to collect with this coverage. One is the fact that you have to know who hit you, and the other is that they have to be at fault. In other words, if you run a red light, and someone hits you, because you’re at fault, there would be no coverage. This is the only physical damage coverage that can be sold without a deductible. Full collision is always sold with a deductible. The cost for limited collision is a lot cheaper than full collision, but then again, the coverage afforded is a lot less also.

Coverage #9 Comprehensive is fire, theft and vandalism, and also includes glass coverage. This coverage is always sold with a deductible, and be reminded that unlike collision there is no recuperating the deductible on comprehensive. There is a glass deductible of $100.00 available, but I don’t suggest purchasing it. It only saves about $10.00-$12.00 a year. Under comprehensive, you will also be able to rent a vehicle after 48 hours, if your vehicle is stolen and not recovered. However, you must get authorization from your carrier to do this. Check with them for the allowable limit and length of time allowed.

Previously Collision and Comprehensive coverage items were only written on an Actual Cash Basis; which resulted in many an insured not receiving payment for the correct value or their bikes when a loss occurred. In 2003; after much prodding from the MMA (Massachusetts Motorcycle Association), the commissioner changed this ruling. It is now possible to write the coverage at "Stated Value"; which means you will be able to recuperate the funds you've spent on upgrades to your bike; in most cases. You will need an up to date appraisal from a licensed appraiser to be eligible for state value. (A list of licensed appraisers is also elsewhere on this website at appraisers.) The appraisal needs to be submitted to the carrier for approval before the coverage can be written at "stated value".

Coverage #10 is rental; and it appears that we’re allowed this option this year. There are several options available, and the most we can purchase is $45.00 a day up to 30 days for a total of $1350.00.  Now seeing that most motorcycle rental places start at $100.00 @ day, this will cut your out of pocket cost some;  but not cover it all, and the cost annually for this coverage is approximately $167.00.  Rental will allow you to rent a replacement vehicle while your vehicle is in the shop being repaired due to an accident or comprehensive claim; such as vandalism, or falling object. If your vehicle has a mechanical problem, rental will not kick in, it is intended only for a covered peril. i.e.; collision and comprehensive.

Coverage #11 is Towing. Towing will reimburse you in the event of a breakdown of your vehicle, up to the limits allowed on the policy.  This year the maximum amount for towing is $100.00. You will not be reimbursed for towing, when your vehicle is illegally parked; so don't bother sending in the bill to the company.  Be reminded, that in most states AAA will not tow motorcycles; so you might want to purchase this coverage unless you've made provisions for it elsewhere; with your HOG membership or MMA membership or something like that. *Note, AAA Plus will give you more coverage than the auto policy for an auto, and in certain states they refuse to tow motorcycles, so you might want to check with your local AAA office to see if they allow towing of motorcycles.

Coverage #12: Is liability coverage for underinsured automobiles, and again I recommend you buy as much as you can afford, and the state will allow with limits of at least $100,000 Per Person, $300,000 Per Accident; and strongly suggest limits of $250,000 Per Person, $500,000 Per Accident. The cost to increase is a bit higher than #3 but well worth it. This coverage will cover you in the event of a loss where Bodily Injury is involved; and the other party has less coverage than you. If the other party has statutory limits of $20,000 Per Person, $40,000 Per Accident, and you carry the same, there is no stacking of coverage allowed in Massachusetts, and you will have no where to go to recuperate your loss and pay your medical bills. You'll only be eligible for their $20,000 Per Person, $40,000 Per Accident, and that's it! That's why it's recommended that you carry sufficient limits to cover yourself.

Also, this year, we are able to get a discount for Anti-theft Retrieval Devices that are permanently installed in our bikes; this would be a LoJack type. The Harley Davidson alarms have not yet been approved for a discount by the commissioner. The discount for the LoJack devices is 15% of the cost of the comprehensive coverage; but documentation must be presented to your agent to receive the discount.

Off Season:

In Massachusetts, all motorcycle plates expire December 31st each year.  After December 31st, if you let your plate remain dormant, and not renew it right away; or if you renewed your plate and don't intend to ride during the winter months, it is possible to strip coverage to the statutory limit. If you elect to do this, you may be able to remove or lower the liability coverage to the compulsory limit and remove collision; and leave the comprehensive (fire and theft) on.  If you have a bank loan on the bike, check with your lien holder and your carrier as they may not allow this.

Another option is to return your plate to the Registry after season. When this is done, some companies will allow you to strip all coverage, and leave the Comprehensive (fire and theft) only; again this is usually decided by the company's underwriter; so check to see if this is available to you.

When you renew your plate in the spring, please be sure to let your agent know to re-add and increase the coverage to the policy; so that you are properly covered.  Be sure to advise your agent of any upgrades you made to your motorcycle over the winter months. Getting out there on the road without doing that could result in an uninsured or underinsured loss!

Remember; protect your ass and your assets!!

This year your driving record will be attached to each and every vehicle you own; there's no more deferring it, so if you have points, expect them to show up on your motorcycle insurance policy. Also, anyone licensed to ride motorcycles less than 6 (six) years will see that reflected on their policy as well, and lose their good driver discount, too!

And that my friends, is a quick breakdown of your motorcycle coverage. If you have any further questions, please contact me in the office, or call your agent.

Betsy E. Lister
President, Lister Insurance Agency

781-393-9330

***The Homestead Act: For $25.00 you can put your home in the Homestead Act. Once this is done a party cannot attach a lien directly against your home; however, if you get a judgment against you; you’ll still be forced to pay it; meaning that you’ll have to liquidate your assets to pay the judgment. In most cases, your largest asset is your home! So don’t be fooled into thinking that your home will be safe and not subject to problems by doing the Homestead Act.

*** HIPPAA The Health Insurance Portability and Accountability Act of 1996. Under HIPPAA, the industry has issued a statement saying that they consider motorcycling to be a dangerous and hazardous sport! Health insurer's are hanging their hats on this phrase and are denying coverage for claims arising from motorcycle accidents. Traditionally they do not pay for automobile accidents, and if they do, they request reimbursement. They contend that your health insurance is intended to pay for sickness, and accidents not caused by motor vehicles, and they're refusing to pay!  In the event they should pay; be assured that they’ll slap a lien against any and all proceeds you receive from your motorcycle insurance and demand reimbursement.

More insurance information:

When people ask me what I do for a living I tell them...."I sell something everyone needs, nobody understands, and everyone hates to pay for!"

(You'd be surprised at the responses I get. Some even included sex, but what about sex don't you understand? (I'll leave that for another column).

It's true though, most folks hate to pay for insurance because they're not buying something tangible, like a car, or a piece of clothing, or furniture; That...they can understand! But the concept of "buying piece of mind" is not something that’s readily understood; until there's an un insured loss!

So, when purchasing coverage, work with YOUR agent and try to look at your whole picture; homes, autos, motorcycles, business, IRA's, banks accounts, retirement,  other recreational vehicles, etc., if possible, and figure out what you've got to lose if someone gets a judgment against you;  or you injure someone and purchase your insurance coverage limits accordingly.

Purchase as much liability as you can afford, and as much as the law will allow is a good concept; but not one that's always feasible. Finances seem to get in the way here...but try not to leave your ass and your assets out there swinging in the breeze. The cost to increase liability limits to 250/500 across the board is about $100.00 or so extra a year! That's nothing, when you think of the thousands of dollars more coverage you purchase for that outlay.

Again, work with your agent in purchasing coverage; insurance is like a suit "off the rack" it can be tailored to the individual that's purchasing the coverage, and seeing as everyone is different and has different needs and issues, buy YOUR coverage to suit YOUR needs.