What is Excess in Motorcycle Insurance?

Many costs are associated with motorcycle insurance. However, riders might be unaware that excess costs are included in their policy.

When you file a claim with your insurance company, sometimes you must pay a fee before your damages will be covered. This is known as excess. Depending on your policy, you could have several forms of excess attached to it, costing you a significant amount of money if a negligent driver ever injures you. Jerry can help you fully understand what you must pay if filing an at fault insurance claim. Every rider will be required to pay a “compulsory” excess fee, but the excess amount will depend on many factors and set by the insurance company. You might also need to pay a “voluntary” excess if you added it to your policy to save money on your premiums. Jerry can also help research excess protection insurance to reimburse these costs.

Call New Jersey motorcycle accident attorney Jerry Friedman at 1-800-529-4464 for a free case review today.

What is Motorcycle Insurance Excess and Do I Need to Pay it?

Motorcycle insurance excess is a certain amount of money you might have to pay when filing an “at fault” insurance claim. Generally, you must pay excesses in your at fault claim before receiving compensation if you are found entirely or partially at fault for the crash. Motorcycle insurance excess can be separated into compulsory and voluntary excess. As the name implies, you must pay the compulsory excess. The voluntary excess is just that, your choice to pay.

However, insurance companies are sneaky and often hide these fees in the policy. If you are researching insurance for a future motorcycle purchase or unsure what excesses are in your current policy, our Atlantic City, NJ motorcycle accident attorney, Jerry, can help. As a rider and lawyer, Jerry has dealt with motorcycle accident insurance issues for years. He can help you determine what you must pay if you have been injured and file a lawsuit when insurance coverage is insufficient or your claim is denied. The following will explain what excesses are required and which there are advantages to paying:

Compulsory Excess

Compulsory excess is the mandatory payment you must make when filing an at fault claim with your insurance company after a motorcycle accident. Your insurer sets the amount when you purchase your policy, which should be clearly stated in it.

How much your compulsory excess will depend on the type of insurance policy you purchase and many other factors. Younger riders, like those younger than 21 and 24, typically have higher excess costs than older riders. How long you have possessed a valid motorcycle license will also impact your compulsory excess rate. More expensive motorcycles cost more to cover, so the excess will usually be higher. Even where you live can influence your compulsory excess, with higher costs for densely packed metropolitan areas with greater chances of an accident.

Fortunately, your compulsory excess should go to covering your expenses from the accident. For example, if your medical bills add up to $5,000 and you have a compulsory excess of $1,000, insurance should cover the remaining $4,000 in damages if it is not beyond the policy’s limit.

Voluntary Excess

Voluntary excess is completely optional but must also be paid at the time you make your insurance claim. If it is optional, why pay more money? Most riders choose to pay a voluntary excess to save money on their yearly insurance premium payments. When you purchase your policy, you can set the amount you will pay should an accident occur. The more money you offer to pay upfront, the more you are likely to save in annual costs. Paying a voluntary excess is worth considering if you are confident in your riding abilities and have ridden for years without incident.

However, you should always choose an amount that you can actually afford. Larger voluntary excess amounts might make your insurance cheaper, but it can backfire if you need to recover compensation since you must pay the compulsory and voluntary excess when filing your claim. If your voluntary excess is too high, it can jeopardize your coverage.

Do I Need to Pay Motorcycle Insurance Excess if I Am Not at Fault for the Accident?

The good news is you do not need to pay motorcycle insurance excess if you are not at fault for the accident. This means that the other driver was 100% responsible for your injuries.

However, you must prove this by providing evidence of the other party’s negligence. Evidence of liability often comes in many forms. Insurance companies usually require police reports to process a claim, which might note whether the other driver was cited for a traffic violation. Photos and videos can also help prove negligence. Perhaps the other driver had a dashcam installed, or you were wearing a GoPro camera on your helmet. This evidence can be submitted to support your claim.

Remember, if the insurance companies find you at fault in any way, you must pay your compulsory excess and any voluntary excess you agreed to.

How Can I Avoid Paying Excess in a Motorcycle Insurance Claim?

The only way to avoid your excess payments is by being blame-free for the accident. However, you can get reimbursed for excess costs if you purchase a separate excess protection insurance policy or add it to your current one. If you have a high compulsory excess amount, you can get excess protection to match that amount, saving you money for your recovery after the crash.

When you are injured, you will pay your excess if you are partially at fault to start the process. Afterward, you can file a claim with your asset protection for the amount paid or up to your protection limit.

Call Jerry, Our Knowledgeable New Jersey Motorcycle Accident Lawyer, Today for Help with Your Insurance and Any Other Legal Needs

For a free consultation with an Union City, NJ motorcycle accident attorney who cares, call Jerry Friedman at 1-800-529-4464.