Vehicle Identification Number (VIN)
A unique sequence of letter and numbers used by manufacturers to identify a specific motorcycle.
Uninsured Property Damage "UMPD" Coverage
Helps to pay for physical damage caused to your motorcycle by an uninsured driver. This coverage is not available in every state.
Uninsured Motorist "UM" Coverage
Helps to pay for medical expenses and lost wages if you’re injured in an incident where the other vehicle operator was at fault and didn’t carry bodily injury liability insurance.
Underinsured Motorist "UIM" Coverage
Helps to pay for medical expenses and lost wages if you're injured in an incident where the other operator was at fault but didn't carry enough bodily injury libility insurance.
A loss to property that is destroyed or damaged to a point where it cannot be repaired or recovered for future use. A total loss can also mean that the cost to repair or recover the property is more than the value of the property.
A type of motorcycle that is designed with advanced technology in order to go faster and be more maneuverable than other motorcycles.
When an insurance company attempts to obtain reimbursement from another insurance company or person for a claim it has paid.
Steering Lock: An accessory or built in theft deterrent device that helps immobilize the steering wheel of a vehicle.
Rental Reimbursement Coverage
An optional coverage that pays towards rental costs if the insured's motorcycle is either damaged or stolen.
An estimate of what an insurance policy will cost. Quotes are based on information provided by the applicant and include type of motorycle, driving record, location, experience, etc.
Property Damage Liability Coverage
Covers the cost to pay for damage caused to someone else's vehicle or other property when the insured is at fault in an accident.
Proof of Loss
A formal, official document required by the insurance company when the insured files a claim. The insured provides, (and swears to), the information submitted, inluding the details of the claim and the amount of damages.
The amount of money you pay for an insurance policy.
Physical Damage Insurance
Physical Damage Insurance includes Comprehensive and Collision coverages.
An accident that happened at a specific point in time. To be covered, the date of the occurrence must be within the effective period of the insured's policy.
Some states require that vehicle owners carry a certan amount of coverage for themselves and passengers that will pay for medical expenses and loss of wages, etc., regardless of who is at fault in an accident.
A failure to use reasonable care that could result in injury to persons or damage to property of others.
The person named on the declaration page as the insured person. The named insured is also known as the policy holder.
Medical Payments Coverage
Covers reasonable and necessary medical expenses for you, (or anyone operating or occupying the motorcycle with your permission), incurred within one year from the date of the accident.
Loss of Use
Reimbursement to cover rental car or transportation costs, for someone other than the insured, whose vehicle is damaged by the insured in a covered loss. This differs from "rental reimbursement" which is a pays towards rental costs if the insured's motorcycle is either damaged or stolen.
Any injury or damage that the insured suffers because of a covered accident or event.
Limits of Liability
The maximum amount an insurance company will be required to pay following a covered loss.
A bank, credit union, finance company or individual that has legal claim to your motorcycle because they lent you the money to purchase the bike. Lienholders typically require that you carry comprehensive and collision coverages so that they are paid first if the motorcycle is damaged or stolen.
A claim against an owner's property that is used as a security for payment of a debt.
The person or persons covered by an insurance policy.
Installment Payment Plan
A method for paying the full premium amount owed by dividing the payments over a period of time.
A form of anti-theft technology that prevents the engine from starting. It works based on electronic communication between the vehicle's engine and the vehicle's key fob.
Identification Card (Proof of Insurance)
Your insurance identification card includes your name, policy number, policy period, insurance company information and covered motorcycle. Your ID card can be found at the end of your policy packet, is easy to carry, and is typically used to show certain entities, (police, rental car companies, department of motor vehicles, etc.), that you have an active policy.
A potential source of damage or harm against someone or something.
First, Second and Third Parties
Legal terms used to describe the different people or entities involved in an insurane policy. The first party is the insured, the second party is the insurance company and the third party is the person who claims harm or injury.
Items, conditions, risks and sometimes people that are specifically not covered by an insurance policy contract.
An amendment to an insurance contract that changes the terms of the originally purchased policy. Also known as a "rider" or "amendment".
The period of time when an insurance policy or binder goes into effect through the coverage end date.
A factor that lowers your insurance premium, such as anti-lock brakes, anti-theft devices, home ownership, and/or safety or education courses.
A decrease in your motorcycle's value, generally due to time and wear & tear.
An amount you will be required to be paid out of pocket following a covered loss.
The page included in your insurance policy that summarizes policyholder details, covered motorycle, applicable coverages/limits and premium. The declarations page is located new the front of your policy packet.
Injury or harm caused to an individual or property.
Contributory negligence is a rule that prevents an injured party from collecting after an accident if they were partially to blame for the accident. Comparative negligence allows for damages to be pro-rated based on each party's percentage of fault.
Covers damage to an insured motorcycle not caused by collision; due to fire, falling objects, accidental breakage of glass, vandalism, malicious mischief, theft, lightning, explosion, earthquake, windstorm, hail, water, flood or contact with a bird or animal.
Covers the upset, (tip/turnover), or collision of an insured motorcycle with another object. You, or the other party, can be at fault for this coverage to apply.
A request for payment of a loss, usually made by the insured, to the insurer to pay for damages.
Certificate of Financial Responsibility (SR-22)
A certificate that acts as proof of insurance, issued by an insurance company or agent. This certificate is provided to a state licensing department to prove that the policy holder carries the minimum limit of insurance required to operate a motor vehicle. These filings are commonly known as SR-22, SR-44 or CFR and are generally required when there has been a previous inciicent where no insurance or not enough insurance was carried.
Bodily Injury Liability Coverage
Coverage that helps pay toward another person's expenses if they are injured by you, (the insured), in a motorcycle accident.
A term used to identify who caused an accident and a determining factor in who pays for the damages.
An expert's opnion of the value of an asset. An appraisal is sometimes required during the claim adjustment process.
An individual who investigates, manages and settles claims.
Actual Cash Value, or ACV
The fair market value of your motorcycle. It is equal to the cost to replace the bike minus the dollar value of the damage and/or wear-and-tear. For example, a new bike right off the showroom floor will have a higher ACV than a 10-year-old bike that has been in 2 minor accidents and has 10,000 miles on it.