Accidents and Insurance

All too often a bicyclist is seriously injured in an accident caused by a negligent driver and later investigation reveals that the motorist was uninsured, sometimes leaving the bicyclist without any insurance benefits. A recent example may help illustrate the point. On August 11, 1998, Jan Conner and Marvin Rambo (at the time the President of Portland Wheelman bicycling club) were run down by a drunk driver who swerved his sport utility vehicle into the bike lane on Airport Way, throwing Marvin 80 feet and Jan about 45 feet upon impact. The driver then sped away on a flat tire leaving the bicyclists bleeding along the side of the road. After a one and a half year long police investigation, the perpetrator was arrested, convicted by a jury or drunk driving and hit and run, then sentenced to 12 years in prison. Our office filed a negligence lawsuit against the driver for the injuries suffered by the bicycle riders. In the "discovery" stage of the lawsuit, we found out that the driver's insurance had been canceled for nonpayment. Another potentially applicable insurance liability policy had expired one day before the accident. The bicyclists were left with serious permanent physical injuries and a "judgment proof" incarcerated driver without insurance or any remedy.

All too often, serious accidents are caused by people who are irresponsible drivers without insurance. However, there are two types of insurance bicyclists who are also automobile drivers can obtain in order to protect themselves.

Personal Injury Protection

Every Oregon motorist's insurance policy contains Personal Injury Protection (also known as "PIP"). PIP provides certain minimum coverages and can be "stacked," meaning that when more than one policy is applicable the benefits accumulate for the benefit of the claimant. The Oregon Revised Statutes (ORS) contain certain statutory minimums for PIP coverage which include up to $10,000.00 for medical expenses and one year of wage loss up to $1,250.00 per month. PIP is "no-fault" in that an injured party may make a claim against the policy regardless of who was at fault in the accident.

Uninsured and Underinsured Motorist Coverage

The second type is uninsured (UM) or underinsured (UIM) motorist coverage, insuring for all sums the uninsured "shall be legally entitled to recover as damages for bodily injury or death caused by accident and arising out of the ownership, maintenance or use of an uninsured motor vehicle." ORS 742.500. UM or UIM coverage provides coverage as if the uninsured driver had a liability insurance policy. The injured person makes a claim against his or her own insurance policy for their damages. In the case of a serious accident caused by an uninsured driver or underinsured driver, UM or UIM coverage is the best protection for an injured rider. While the Oregon statutory minimum is $25,000.00, with today's high medical costs it is advisable to have at least four times that amount. As with most insurance purchases, the higher ranges of insurance coverage provide more insurance for fewer dollars above the statutory minimum so higher limits policies are usually a very good deal for the dollar. UM and UIM coverage applies to bicyclists, so long as an accident is the fault of an uninsured or underinsured driver.

The legal relationship between the various types of coverage in a serious accident is quite complex. In some instances, coverage may be denied or limited depending upon policy language and benefit amounts. Seek professional assistance from a lawyer knowledgeable about insurance claims before you accept any representations about whether an accident is covered by a particular insurance policy.

Frequently, serious accidents are caused by uninsured or underinsured drivers. Even if an accident is caused by the bicyclist, PIP coverage (which is no-fault) will apply to provide some benefits. Bicyclists would be well advised to purchase UM or UIM policies with high policy limits to protect themselves from major injuries caused by financially irresponsible drivers.