BIKE LAW 101 - The BLS for the Touring Cyclist - Part One - Insurance
BIKE LAW 101
THE B.L.S [1] FOR THE TOURING CYCLIST - Part One - INSURANCE
By Steven M. Magas, The Bike Lawyer[2]
Can’t you just picture it – maps laid out, clothes folded ready to be loaded into waiting panniers, bike all tuned up, the smell of Teflon floating about the room. The last thing on the touring cyclist’s mind as he/she goes through the Pre-Trip Checklist is the BLS. Unfortunately, failure to consider the BLS can end up costing the touring cyclist time, money and the safety and peace of mind of his family! The BLS includes: insurance issues, estate planning and traffic/bicycling laws. We’ll take a look at all three, starting with the always exciting topic of INSURANCE today!
INSURANCE ISSUES for the TOURING CYCLIST
Insurance? You don’t need to worry about no stinkin’ insurance, right? You’re driving a BIKE not a car … what can POSSIBLY happen? [For this part of the article, let’s assume you are staying inside the
Health Insurance
First, and foremost, before you leave the house make sure you are carrying all of your health insurance information. Keep it close at hand - better yet, pack your insurance card, or a copy, in a small [2”x3”] baggie with your ID, emergency contact information and list of medical allergies stored visibly on your person – or in your helmet! If you are hurt on the road, unable to communicate and need emergency care or serious medical intervention you do NOT want healthcare professionals wondering who you are, who to contact and whether or not you’ve got health insurance! “Road ID” is a company that makes an excellent wristband product holding a plate with your emergency information or whatever you tell them to type on the plate!
WARNING: While I have not seen this in my “bicycle law” practice, I have learned from my “motorcycle law” practice that some health insurers are experimenting with limiting the benefits they provide if an insured is injured while riding a motorcycle or engaging in certain other “hazardous sports.” As you might expect, motorcycle groups, such as the American Motorcyclist Association, are up in arms and preparing to do battle. However, under policies out there right now a motorcyclist can hit by a DRUNK driver and have NO health insurance coverage! If insurers find this effective, you can BET they will apply the concept to cycling very soon! A bill is currently pending in Congress to stop this practice.
Homeowner’s Insurance
Keeping your homeowner’s insurance with you is also important. Many people do not realize that their homeowner’s insurance will provide coverage if they negligently run over someone or something! If you are going on an extended trip, take your agent’s phone number and your policy number. If someone claims YOU did something wrong, causing them loss, damage or injury, you will need to contact you homeowner’s insurance carrier right away!
Auto Insurance – Medical Payments Coverage
Why would you need to take information about your automobile insurance policy on a 3 week bike ride? If you are injured in a crash with a motor vehicle you may find some financial assistance buried within your automobile insurance policy!
Most auto insurance policies provide, or offer, “medical payments” coverage. This coverage pays YOUR medical bills if you are in a crash with another car. Historically, if you were hit by a car while riding your bike your “medical payments” coverage could be used to pay some of your medical bills even though the coverage is found in your automobile policy.
WARNING: Recently, I came across the first automobile insurance policy I have seen, from Nationwide Insurance, which LIMITS “medical payments” coverage and EXCLUDES paying medical bills if you are hit by a car while riding your bike! Read your policy closely before you leave. The language may be difficult to decipher, or ambiguous. You may want to ask your agent if you are covered in such a scenario. If the agent says “Yes” then IMMEDIATELY fax a letter to the agent [and keep a copy] restating your question and his answer and thanking him for his advice. State in your letter that you are relying on this important advice because you often ride your bicycle in situations where you are in close proximity to motor vehicles. Even if the agent is wrong in his/her advice, your letter may serve to extend coverage anyway, depending on the case law of your state, as an agent’s statements of coverage may bind the carrier.
Auto Insurance – Uninsured/Underinsured Motorist Coverage
One all too common scenario many road riders regularly face is the cowardly motorist who zooms by and runs you off the road, throws something at you or otherwise causes a crash in which the cyclist is injured. These “phantom motorist” cases are tough, but the law of many states provides for a recovery under the “uninsured/underinsured motorist” [“UM/UIM”] provisions of your auto insurance policy.
I advise my clients to buy as much “UM/UIM” coverage as they can afford because it is coverage that pays YOU when you need it the most! The “uninsured” part of this is obvious. If you are struck by motorist who simply has no insurance, your “UM” coverage should pay your injury claim just as if it was the motorist’s coverage.
The “underinsured” may not be so obvious. Let’s say the motorist who runs you over actually has pretty good coverage - $100,000.00 policy limits. However, because of the severity of your injuries, wage loss, medical bills, pain, permanent injuries and the like, your claim is worth a lot more than that – say, $500,000.00. The motorist, despite his excellent coverage, is considered “underinsured” and your policy’s “UIM” coverage may be used to pay more towards your claim depending on your policy limits. Again, the law varies dramatically from state to state on this one!
Are you carrying an Umbrella?
Do you carry any type of excess or umbrella insurance? These types of policies are designed to go over the top of all other policies and only come into play in extraordinary occurrences in which all other available insurance is used up and you still have losses. An umbrella policy is usually written with large policy limits - $500,000.00 or more. You are required to carry certain minimum policy limits for underlying coverage. I advise ALL bike riding clients to consider an umbrella policy. They are typically very inexpensive and, in that once in a lifetime situation, can save your financial life! Consult your insurance professional for details.
Real Life Insurance Example
So here’s a real-life example of insurance coverage in action. My client, a physician who rides all the time, suffered a dangerous fractured neck when a motorist backed out of a driveway directly in front of him as he rode down a hill. He needed surgery to fuse his neck. The motorist, unfortunately, had state minimum auto coverage - $12,500.00. The client’s medical bills were in excess of $80,000.00. His wage loss is $50,000.00 and still growing.
Fortunately, the cyclist purchased excellent auto coverage which had $300,000.00 “underinsured motorist” coverage and $10,000.00 in “medical payments” coverage. He used the medical payments coverage to pay his “co-pay” for the surgery and other treatment. In addition, he maintained an excellent disability insurance policy through his practice that kept him afloat financially while he was off work completely for more than two months. Finally, he purchased umbrella policy with $1.0 million limits. Since his claim clearly has a value that exceeds his $300,000 “UM/UIM” limits, we will tap into the umbrella to resolve the case. While he, like most of us, hoped he would never need it, the “once-in-a-lifetime event” happened to him between the end of his workday and dinner one night!
[1] Boring Legal Sh…er…. Stuff
[2] Steve. Magas is an avid
