Expert: Richard Hixenbaugh - 5/27/2010

Question
QUESTION: Three days after purchasing a new motorcycle at a dealer here in Los Angeles, it was stolen from my driveway.  I called the police and then my auto insurance (Safeco).  Although I did not have a motorcycle policy (yet), I was expecting coverage from my auto policy because, while reviewing my policy, it (the policy) specifically EXCLUDES motorcycle coverage under the UI and the Liability sections, but does NOT exclude motorcycle coverage in the comprehensive section.  Safeco denied the claim stating there is no reason to exclude the motorcycle coverage under the comprehensive section as well as the liability section, but declined to answer when I asked them why do they exclude coverage under the UI section as well as the liability section?

I believe Safeco has acted in bad faith for not covering this loss.  Am I correct?

ANSWER: Hi Henry,

I'm sorry your bike was stolen.

Unfortunately, there is never a situation when an auto insurance policy covers a motorcycle. You may want to try to fight this, but you best be prepared to spend thousands on attorny's fees (if you can find an attorney that will take the case) and will likely take a couple of years to get to court.

In over 20 years in auto claims, I have never heard of of coverage extending from an auto policy to a motorcycle.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Thanks for the response.  I thought of that very instance, but one question I would have then would be: If there is never a situation when an auto ins. policy WOULD cover a motorcycle, why did the insurer feel it was necessary to exclude it (the motorcycle) under the both the liability and UI sections in the first place???

ANSWER: Hi Henry,

It is never covered because it is always excluded. There are several sections to an auto policy and there are several areas where there are exclusions and limitations. Coverage for a motorcycle is excluded in the general exclusions which should take care of the entire policy. I would imagine that at some time there was a lawsuit that tried to force certain types of coverage because there was not a specific exclusion in that section. So the insurance company added an exclusion to make sure.

However, if there are any exclusions in the general exclusions of the policy, They apply to the entire police unless specifically stated otherwise.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Good point...I don't think there are any "general exclusions" though.  Can I email you a copy of the policy so you could take a quick look at it?

Answer
Hi Henry,

Unfortunately, in this format I am unable to review lenghthy documents. It is meant to provide a quick answer to a quick question. But as I said previously, in over 20 years in the business, I have never heard of anyone receiving payment for a motorcycle under an auto policy.

If you feel there is any possibility that there should be coverage on your auto policy for your motorcycle then you should make an appointment with an attorney that specializes in insurance coverage matters in your state. That is the only way to get a real legal opinion.

I hope this helps
Richard Hixenbaugh