Define insurance for me...

**Swift** · 11-24-2007, 04:32 AM

So what exactly is:

Collision, comprehensive, and liability? I have a very vague understanding of them, which is:

Collision: If I crash and I'm at fault, then I pay my deductible and call it a day.

Comprehensive: Fire, theft, and vandalism.

Liability: If I crash and hurt somebody this will cover it, or if I smash into a restaurant or building, this will also cover it.

Somebody make me smarter

**tat2** · 11-24-2007, 09:37 PM

The back of your policy should explain what each is.

I'd tell you but I need to read the back of mine to remember.

**unresolved** · 11-26-2007, 06:06 AM

All of insurance in Ontario is set out in the Insurance Act of Ontario.

You are required to carry the basic coverage. This comprises Uninsured Motorist, PL/PD, Direct Compensation and Accident Benefits. You may also purchase coverage for "Own Damage" this is Collision and Comprehensive.

Uninsured Motorist coverage responds if your vehicle is damaged by an uninsured motorist. The responsible driver must be proved to be uninsured. A deductible applies.

Personal Liability/Property Damage responds if you cause damage to somebodies property. For instance, if you were to run over a fence that doesn't belong to you. PL/PD does not respond for your damage to somebody else's automobile.

Accident Benefits is the big one. This coverage responds if you are injured by the use or operation of a motor vehicle. The benefits are very rich under this coverage. Describing them would make your head swim.

Direct Compensation responds when your vehicle is damaged,to the extent that you are not at fault. The accident must involve two or more vehicles, in Ontario that are insured in Ontario. If you are NOT at fault, this coverage responds for your damage. You only look to your own insurer in Ontario. You have no right of recovery from the insurance of another for damage to the automobile.

These four coverages are the minimum that you must carry under the law. All basic policies will include these. These are designed to offer protection to society in general including the occupants of the vehicle and substantially reduce law suits.

The optional coverages are Collision and Comprehensive. An added premium would apply. Collision is coverage for impact with anything in or on the ground or the ground itself. Insurers generally make the exception of impact with an animal and cover it under Comprehensive. Comprehensive covers for damage caused by anything else, such as fire, theft, attempted theft, vandalism and broken windshields.

These two coverages are optional and protect the insured's own property. A deductible will apply to both of these coverages. This would respond for collisions where the insured is at fault, or for "acts of God" in the case of Comprehensive losses.

Clear?

**Swift** · 11-26-2007, 05:11 PM

Thanks!!!!!!!!!!!!!!

**friedrice** · 11-27-2007, 10:18 AM

Easiest way to define insurance " In case Sh#% happens" and if nothing does happen we still lose $$$$$$$ BS.

**Triple** · 11-29-2007, 02:04 PM

definition:

pay a ***** load of money for coverage in case of an accident... after going through the emotional pain/torture of trying to recoup **your** money through your broker, and after paying an exhorbitant deductible... so that you can pay 300-400% more back to your insurance company for the next six years. Its a real form of "peace of mind".

**Swift** · 11-29-2007, 08:18 PM

Originally Posted by Johnny_SV

definition:

pay a ***** load of money for coverage in case of an accident... after going through the emotional pain/torture of trying to recoup **your** money through your broker, and after paying an exhorbitant deductible... so that you can pay 300-400% more back to your insurance company for the next six years. Its a real form of "peace of mind".

haha oh.

What coverage do you guys recommend? Full, or just libility?

**rukus** · 11-29-2007, 10:16 PM

i reccommed a minimum of 1mil liab. anything less could cost you a lot, its a gamble i choose not to make.

as for collision/theft, depends on worht of the bike/is paying extra worth the cost to replace it if destroyed/stolen

**unresolved** · 12-04-2007, 06:09 AM

The most expensive part of the basic policy is the Accident Benefits section. If you increase the amount of liability coverage, it is usually only amounts to a negligible increase in the amount of premium that you pay. rukus is right, 1 million is the minimum amount that you realistically need.

As for Collision and Comp, look at it this way. If you do not carry these, you are essentially self-insuring. If the bike gets stolen, vandalized, or either in a single-vehicle accident or one for which you are at fault, you bear the cost. If you feel that you can support that kind of risk, you can save the insurance premiums. It is worth finding out the cost of Collision and Comp because they are not generally too expensive compared to the balance of the price you pay.