Passes & Canyons Blog

As Senate Bill 24-065 (Mobile Electronic Devices & Motor Vehicle Driving) was coming up for its initial Colorado House hearing recently I was wondering–as I mentioned previously–if there would be opposition as there was two years ago claiming that it would be unfair to fine poor people who violated the law.

Thinking about that got me thinking about a different issues from what must have been 25 years ago. The connector here is well-intentioned people reaching conclusions that overlook extremely relevant factors. In the case of outlawing use of handheld electronics while driving (SB24) it is the idea of trying to help people who did not have to break the law while ignoring the very real impact on other people who did nothing wrong. If it’s not clear what I’m referring to please read the other piece linked to above.

The situation 25 or so years ago had to do with insurance and wearing helmets. Specifically, there were health insurance companies that were writing policies that said if you were injured in a motorcycle crash and you were not wearing a helmet they would deny your claim. Does that still happen or were laws passed forbidding that? I’m not sure but I suspect it is no longer an issue because it’s been a long time since I’ve heard it mentioned.

So anyway, my family was gathered at some point and this whole thing came up and my father offered his opinion that he saw nothing wrong with that policy. After all, people should wear helmets and why should the insurance companies pay if they refuse to protect themselves?

I nearly exploded. This is the gist of what I told him.

OK, let’s say I’m legally riding my motorcycle without a helmet. I’m obeying the speed limit and all the traffic laws and I have a motorcycle endorsement on my drivers license. Then I get hit but a guy who a) is speeding, b) runs a red light, c) does not have a license because he lost it due to DUIs, and d) is drunk. He veers off and hits a telephone pole and is also injured.

So everything I have done is 100 percent legal, while everything he has done is 100 percent illegal. Oh, and by the way, while I am badly injured, I have not sustained any head injuries, despite not wearing a helmet.

After all this, my insurance company says it will not cover my medical expenses because I was not wearing a helmet (legally!) but his insurance company will cover his medical expenses.

Are you telling me that is somehow fair and appropriate? Really?? Are you telling me this makes any sense at all??

OK, my Dad was a rational guy and he acknowledged the error of his thinking once I educated him on the matter. And that’s my whole point. There are plenty of people out there who favor or oppose policies we might know are respectively bad or good simply because they are not personally connected to the issue and have not given it more than cursory consideration. But once they are presented with more facts, a deeper understanding, they see the error of their thinking.

That’s what the motorcycling community has to do, continually. That’s what organization such as the American Motorcyclist Association, the various state ABATEs, the Motorcycle Riders Foundation, and others work to do constantly. And it’s what each of us needs to do when talking with non-riding friends and family members. We need to educate them. I mean this was my own father and he thought it made sense to deny his son coverage until I educated him.

Let’s all be educators.

Biker Quote for Today

Every ride is a tiny holiday.

Many years ago I bought a junker of a pick-up truck to haul materials for some landscaping I was doing at home. This was not a vehicle you would drive for any other reason. It had been in a crash and the frame was bent, so it was one of those things that look like they’re going sideways down the road. Mostly it sat parked in my garage.

It didn’t take me long to figure out, however, that for what I was paying in insurance on it each year I could save money by paying to have this rock and compost and other stuff delivered. So I sold the truck.

A lot of people who have motorcycles don’t really ride them all that much. If you only ride the bike about 1,000 miles a year but you’re paying $200 for insurance that would come to 20 cents per mile ridden. If you put 10,000 miles on that bike you’re only looking at 2 cents a mile. What if you could get insurance where you pay for the actual mileage you put on the bike?

This is actually an option in some states (Arizona, Illinois, Ohio, Indiana). There is a motorcycle insurance company called Voom Insurance that does exactly that. Ron Khirman from Voom contacted me recently asking if I would like to work with them on getting the word out about their company. In exchange for putting up a blog post (this post) they would pay me $50. Check them out, write whatever I feel is appropriate. I said I was interested in their offering but if they were going to pay me I would need to let you, the readers of this blog, know that. “Fine by us,” Ron replied.

So I checked them out. Ron sent me to a link that is presumably a dummy page so I wouldn’t accidentally purchasing insurance that would do me no good–I’m in Colorado and they do not yet operate in Colorado. The first thing that happened was that Norton Antivirus deemed this a dangerous choice and I had to tell it no, I really do want to go to the site. I got no such response when I went to the actual site in the link above. In the meantime I was able to get the information I needed.

For starters, Voom offers three plans at varying price points: Essentials, Popular, and Extended. With Essentials the monthly base rate is $4 and 1 cent per mile. For Popular it is $9 a month and 4 cents per mile. With Extended it is $35 a month and 13 cents per mile. If you go with Popular it adds in comprehensive and collision and going to Extended also includes uninsured, underinsured, and body injury.

Each plan is customizable depending on what coverage you want. For instance, I chose Essentials and used my V-Strom as the bike. It gave me a base rate of $2.10 and a penny per mile. (The last two fees are consistent for all policies.) This includes $25,000 coverage per person, $50,000 coverage per incident, and $20,000 property damage per incident. These coverages meet Colorado’s requirements. If I added comprehensive and collision that went to $7.76 per month and four cents per mile. All the standard choices you always make with insurance were there for your selection.

They also offer the usual deductions for things like having a motorcycle endorsement on your driver’s license, taking a rider safety course, and that sort of thing. I have those so I took those deductions.

So how does this work out for me? Would I benefit by paying per mile for my insurance?

Well, last year I rode the V-Strom 1,046 miles. Taking the basic coverage that would work out to $35.66, whereas I now pay GEICO $145.02 per year on that bike. (OK, an update on Dec. 1: I did the math wrong. I think I misread that quote. By my recalculation it would cost me $60.62 per year. That’s still a heck of a savings.) I tried adding my other bikes onto the policy and it didn’t alter the general equation very much. It would seem that I could save a good bit of money going with a policy like this.

I don’t know. Maybe there’s something I’m missing here but this looks like a pretty sweet deal. If it was offered in Colorado I would definitely check it out further. But it isn’t, so for now I won’t. Get back in touch with me then, guys, OK? If any of you readers give this a shot let me know how it turns out. Thanks.

Biker Quote for Today

You know you’re a biker if you only took the job to pay for your trip to Sturgis.

I was reading the Spokesman, ABATE of Colorado’s bimonthly newsletter the other day and they had this piece provided to them by Scott O’Sullivan, who is involved with Rider Justice and the O’Sullivan Law Firm. I thought it was pretty good and worth passing along, so here it is. It’s a tiny bit self-serving in that it is a promotion for the O’Sullivan Law Firm and Rider Justice, but hey, no big deal. I’m not endorsing them; I don’t know anything about them. I just thought it was good information.

Top 5 Ways Insurance Companies Cheat You

When you’re injured in a motorcycle crash, it’s stressful enough dealing with the mounting medical bills and the long healing process. Even worse, all the red tape and hoops you have to jump through when dealing with insurance claims just adds insult to injury. But it’s important to make sure you receive all the money you’re entitled to. After years of responsibly paying your insurance premiums, you deserve to recoup every dollar from your coverage! However, I’m sorry to say that insurance companies are not on your side. Here are the Top 5 Ways Insurance Companies Cheat You.

After a Crash Asking for a Recorded Statement
Most everyone is familiar with the Miranda Warning that says, “Anything you say can be used against you in a court of law.” This is also true for recorded statements that an insurance company may request from you. Insurance adjusters will twist your words to make you look bad, thus making you ineligible for your claim. If an insurance company representative is asking you to make a recorded statement, hang up and call a motorcycle accident attorney immediately.

Pushing for a Quick Settlement
Dealing with insurance companies and legal battles can be an extremely stressful experience. But no matter how badly you want to wash your hands of the entire thing and just get it over with, you should never fall into the trap of accepting a quick settlement from your insurance company. Insurance companies use this tactic because it saves them a lot of time and money, and it almost always guarantees that motorcycle accident victims accept a much smaller amount before fully understanding how much their claim is really worth.

Asking for a Signed Medical Release
If you’re in a motorcycle accident, an insurance adjuster may try to convince you that you absolutely have to sign medical release forms, giving them access to all of your medical records, both past and present. Why is this bad? I have seen insurance companies go far back into a victim’s health history and deny payment based on previous experiences that have nothing to do with the accident and the victim’s current condition.

Causing Confusion
When it comes to the average individual, insurance contracts are confusing. Insurance companies often rely on a victim’s confusion (and the many other issues they may be facing, such as medical concerns) to push inadequate settlements or even to get victims to sign away their own rights! When filing a claim, sign NOTHING until you hire an attorney to go over the documents so you know your rights.

Refusing to Renew
Although you shouldn’t rush the process and settle right away, be sure not to waste too much time filing a claim if you decide that’s the route you want to take, especially if you’ve already contacted your insurance company with an inquiry. Many insurance companies will drop your coverage and refuse to renew a policy if they get a whiff that you may be considering a claim.

Do you have specific questions about Colorado state laws when it comes to dealing with insurance companies after a motorcycle accident? Call or text us at (303) 388-5304.

Biker Quote for Today

Look twice for motorcycles: someone’s whole world is on that bike.

http://www.flickr.com/photos/gentleman_rook/ / CC BY-ND 2.0

How can you save money on motorcycle insurance? Pam King, who writes about such things for Direct General, a company dealing in motorcycle insurance, contacted me to ask if she could do a guest post here discussing that question. After reading her piece I told her yes, but that I would be adding my own comments in a few spots where I take a different view of the matter.

10 Simple Questions for Cheaper Motorcycle Insurance

Whether you’ve just purchased your first motorcycle or have been riding for years, motorcycle insurance can make a HUGE impact on your budget. As with auto insurance, your rates will depend on things like your age, the type of bike you own, your driving record, and your geographic location.

Aside from these factors, there are several other ways you can save money on your motorcycle insurance. All it takes is knowing the right questions to ask! Here are 10 questions to ask your insurance agent and potentially save yourself quite a bit of money on your policy.

1) Do you have a detailed copy of your current policy? If you currently have a motorcycle insurance policy, having it in front of you when talking to your agent can be a big help. The agent will want to know the specifics of your current coverage and how much you pay for each portion. This can help them determine the best rate – and hopefully save you money in the end.

2) Does your state require bodily injury coverage? Many locations require you to have bodily injury coverage, which pays for injury to others if the accident is your fault. In most states, the legal minimum is $10,000 per person, per accident. However, insurance companies recommend you carry as much as three times the minimum in case of litigation or a lawsuit.

Ask your insurance agent for the specifics of their policy, but as a rule, bodily injury coverage pays for the medical bills incurred by injured parties and their guests, the cost of repairing or replacing damaged property, the lost wages of the injured party, and more.

3) Can you afford to increase your deductible? Increasing your deductible, the amount you pay for a claim before insurance kicks in, is a great way to lower your monthly payments. Having a higher deductible will cost more if you get into an accident, but it can save you quite a bit of money from month-to-month. If you do increase your deductible, you may want to consider putting part of the money you save each month into a savings account. Then, this can be saved in case of a future accident.

Ken says: I hear this all the time and I personally take a different approach. Yes, you can reduce your monthly premium if you take a higher deductible, but if you have a single claim in 5 years or even more, what you save with the lower deductible can easily more than pay the extra premium amount. I can deal with paying a few dollars extra each month. I don’t want to get hit with that BIG expense all at once in case I have a claim.

4) Do you plan to ride with a guest? Unlike auto insurance, passengers aren’t automatically covered under a policy. If you plan on riding with guest — and this means ever — you’ll want to add guest passenger liability coverage to your policy. This will pay for any injuries your passenger gets while riding with you.

5) Do I need collision coverage? Take a look at the following factors. If any apply to you, you may want to consider dropping your collision coverage:

Your bike is more than five years old
Your bike is valued at less than $3,000
You’re a safe driver and haven’t had an accident in the last years
You’ve saved enough money to pay for repairs if needed

Talk with your insurance agent before you decide to drop it completely. They can help you determine if this is a good choice based on your deductibles and the value of your motorcycle.

Ken says: Both my bikes are more than 5 years old and I say yes to the other points except that my Concours is worth more than $3,000. I carry only liability on my Honda CB750 but I have collision on my Connie. The reason is the bodywork on the Connie. That stuff is expensive. Coupled with my low deductible, an accident that does not total the bike but causes serious damage would not cost me much, and it would more than justify my choices for a lot of years.

6) Do you need all the extras? Motorcycle insurance plans sometimes include things like roadside assistance, extra medical coverage, and towing. Sit down and consider whether or not you can live without these items, or if the money you’ll save by dropping them is worth it.

Ken says: This should be a no-brainer. Don’t pay extra for roadside assistance or towing: join the American Motorcyclist Association and get these at no extra charge as part of your membership, provided that you sign up for automatic renewal each year via credit card.

7) Do you want accessory or custom parts coverage? Some policies don’t cover the extras you add to your bike, even if they are damaged or destroyed in an accident. This includes things like highway pegs, radios, CBs, custom seats, a luggage rack, safety guards, and more. If you want coverage for these, be sure to add it to your policy. If you can live without it, don’t opt for the coverage and save yourself some money each month.

8) Do you plan to drive your bike to work? If not, let your insurance agent know. Some companies give discounts for putting less than a certain number of miles on your bike each year. Quite the opposite, others give discounts for using your bike for transportation to and from work. Of course, this will be something you’ll have to bring up with your agent to get the appropriate discount.

9) Do you live in a low-cost or high-cost area? If you plan to move in the near future or garage your bike in a different area than you live (For example, a vacation home), make sure to tell your agent this. Generally, the more urban the area you live, the higher your premium. And, rates can vary significantly from state to state. If your winters are spent in Arizona, but your bike is stored at home in South Dakota, your rates may be significantly different.

10) Do all drivers on your policy use the motorcycle? This is particularly important for young drivers. If you have a student who’s moved away to college and no longer drives the motorcycle, drop them from your policy. Why? Because the insurance rates are much higher for teens. However, be cautious–if you take a driver off your policy but they eventually take your bike out for a joy ride and have an accident, you’ll be liable for everything.

There you go, my friends. Consider the above questions before talking with your insurance agent about motorcycle insurance coverage. It will not only help you be well-informed, but will also help negotiate the best rates and save money in the long run.

About the Author:
Pam King writes on frugality, safety and insurance literacy for Direct General, a motorcycle insurance provider. When not saving money on her insurance, Pam enjoys knitting, NASCAR, family and watching rollerderby! :)

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Biker Quote for Today

Sweat wipes off. Road-rash doesn’t.