Underinsured and Uninsured Motorist protection for Phoenix Motorcycle Riders
Before I became a lawyer, I did not know the first thing regarding insurance, and I assumed anything an insurance agent was selling me was garbage. Usually, the only thing I would buy would be the state mandated minimum coverage. While I still feel that insurance agents are not always looking out in my interest, I certainly do not think that about Underinsured and Uninsured motorist protection. But before I tell you exactly why, a few distinctions:
Liability insurance protects someone who you hurt. State law requires that every driver have at least minimum liability coverage, which means a liability policy of $15,000 per individual/$30,000 per accident. When drivers have this coverage, they sometimes refer to it as "full coverage", even though it is far from adequate. Liability insurance is also referred to third party insurance because it covers the injuries of someone else. That is, the insured is a different person from the beneficiary. This is what the state requires you to have at the very least, and certain car financing banks, typically car leases, require even more liability coverage.
But what if someone hurts you, and they do not have any insurance? That is where uninsured coverage (UM) comes in. What if the person who hurt you has insurance, but not enough to cover your injuries? That is where underinsured coverage (UIM) comes in. Both UIM and UM coverage are referred to as first party insurance because the insured is also the beneficiary of the policy. Of course, the benefit of first party insurance is that it protects you and your family. While state law does not require you to get first party insurance, your insurance agent must offer you first party insurance with limits at least the same as your liability limits ARS 20-259.01(A) .
Another benefit of first party insurance is that it is usually very cheap in comparison to liability insurance. My suggestion is to get higher than typical liability limits for no other reason than to make sure you have first party insurance of the same amount. $100,000 liability/UM/UIM is a good idea, much better than the state required minimums of liability insurance and no first party coverage. It makes absolutely no sense for someone to have very high liability insurance, but not to have any first party insurance. Remember, "full coverage" is not enough.
Even if you did not have first party insurance and suffered a car accident, that is not the end of the inquiry. As mentioned above, state law requires an insurance agent to offer first party insurance with limits at least equal to liability coverage. If the insurance agent does not do that, there could be a separate claim against either the insurance company or the insurance agent who sold you the policy.
Contact a Phoenix, Arizona, Motorcycle Lawyer Today
If you are seeking legal representation or would like more information about our services, contact the law offices of Vladimir Gagic today to set up your free consultation. You can reach us at 602-955-1985, toll free at 855-843-6274 (855-THE MARINE)
