It would first depend upon your state laws are regarding what type of liability insurance you would need. In most states bodily injury (BI) and property damage (PD) are required. These liability coverages would cover the damage done to the motorcycle (PD) or the other person (BI). If the motorcyclist died, coverage will extend to funeral expenses and medical bills of that person, up to the limits of the policy.

Bodily Injury liability covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you.

In the event of a serious accident, such as the one you described you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.

For damages done to the person that was driving and fell asleep they would need collision coverage for their vehicle and a type of coverage such as PIP (personal injury protection) or medical payments to cover their own injuries.

If the accident too place in a "no-fault" state then the motorcyclist's medical bills and funeral expenses may be taken care of by their own PIP policy. PIP covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured's own injuries on a first-party basis, without regard to fault.