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Questions and answers from Oxendine’s office

Q: If I buy a motorcycle, should I get the same liability limits (100?300?100) that I carry on my cars?  Where should I buy motorcycle insurance?

A: The liability limits you have elected on your family cars indicates you may have assets (or the potential for loss in the event of a liability suit) of $100,000 or more.  The 100/300/100 liability limits means your carrier could pay, on your behalf, up to $100,000 to any one person for bodily injury, $300,000 per occurrence for bodily injury, and up to $100,000 for property damage resulting from an accident caused by your negligence.

Since your potential for loss is not limited by the type of vehicle or to one event, your liability exposure would be the same for a truck, a car, or a motorcycle. Therefore, it might be advisable to carry the same liability limits on all vehicles.

Now for your question about where to purchase insurance.  By all means shop around, beginning with the insurance company or agent who carries your auto insurance. Or it may be that an insurance company that specializes in these recreational-type vehicles would be more competitively priced. If you want to check on an insurance company you haven’t dealt with before, you can call my office to be sure the company is licensed to do business in Georgia.

Also, when comparing prices, make sure the quotes include coverage for any special features, such as customization and special equipment, including helmets. Most basic policies only cover factory-installed items unless you pay extra.

You should also consider medical payments coverage for yourself or add medical payments coverage to include a passenger.

Q: Will my auto insurance rates go up if I get caught without proof of insurance in the car, or if I get a speeding ticket?

A: Before I answer your question, let me remind you of one thing that policyholders often overlook.

If you get a bill for your insurance and the amount is much higher or lower than you expected, you can contact your insurance agent or company to rule out the possibility of a mistake. Your insurance agent or representative should be able to give you a complete explanation of the premium. It is always your right and responsibility to learn what you are being charged for by your insurance company, and why.

On the question of whether your insurance rates may go up because you got caught without proof of insurance in the car, this should not be the cause of an insurance premium hike on an existing policy. However, this brings to mind a related issue.

People who go without insurance and get caught may find they have made a very costly mistake. In addition to the significant amount of money they will have to pay in fines, they may also have to pay a very high insurance premium in order to keep their drivers license, or renew their tag/license plate. The cleaner the driving record, the better your chances are of getting the lowest possible auto insurance rates.

The speeding ticket is a different story. Your insurance rate could go up because of a ticket, depending on the insurance company’s rating rules. Also, all speeding tickets may not be equal; for example a speeding ticket for more than 15 miles in excess of the posted limit could be considered a major violation and result in a significantly higher increase than a lesser ticket. Insurance companies usually surcharge an insured’s premium for being at fault in an accident, and some may surcharge for moving traffic violations, such as speeding tickets, running a red light or failure to yield. Additionally, a company may also put the insured in a nonstandard company which charges a higher premium for the same coverage, or even refuse to insure the driver.

For a complete explanation of your insurance company’s response to changes in your driving record, your best source of information is your insurance company representative or agent.

Please send your insurance questions to: Insurance Commissioner John Oxendine, 716 West Tower, 2 Martin Luther King Jr. Drive, Atlanta, GA 30334. Or call 404-656-2070 (toll free at 1-800-656-2298), from 8 a.m. to 7 p.m. weekdays, for assistance with an insurance question. Web address is www.gainsurance.org.