Michigan motorcycle insurance and how no-fault applies to riders

How does Michigan no-fault apply to motorcycles?

Michigan’s no-fault law does not treat a motorcycle as a motor vehicle, so a motorcycle policy does not include the personal injury protection (PIP) that a car policy does. When a rider is hurt in a crash that involves a car or truck, PIP benefits may be available through an auto policy, under Michigan’s order-of-priority rules. When no motor vehicle is involved, the rider’s medical coverage must come from elsewhere.

What medical coverage should a Michigan motorcyclist carry?

Because PIP does not apply in a single-bike crash, riders should choose first-party medical coverage on the motorcycle policy. Insurers generally offer two forms: medical benefits coverage, which typically offers higher limits without a short time limit on claims, and medical payments coverage, which is more economical but has lower limits and a time limit for collecting. Your health insurance and household PIP choices should guide which one and how much.

Questions we answer with you before you choose:

• Does your health plan cover motorcycle injuries, and with what deductibles and network limits?
• Do you, or someone in your household, have an auto policy, and what PIP level was selected?
• Do you ride without a helmet, which requires a minimum amount of first-party medical coverage?
• Do you regularly carry a passenger?

What are Michigan’s requirements to ride without a helmet?

Since Michigan changed its helmet law in 2012, a rider may go without a helmet only if they are at least 21 years old, carry at least $20,000 in first-party medical benefits, and have either held a motorcycle endorsement for at least two years or passed an approved motorcycle safety course. Passengers riding without a helmet must meet their own requirements, so confirm your coverage before a passenger rides helmetless.

Riding without a helmet effectively decides your medical coverage form for you, because the law requires first-party medical benefits at a set minimum.

What does motorcycle insurance cover for the bike itself?

Collision pays to repair your bike after it hits another vehicle or object, including curbs, posts, trees and potholes, or after it tips or rolls. Comprehensive covers theft, fire, vandalism and most other damage that isn’t a collision or upset. Both are optional unless you have a loan or lease. Without an upgrade, a totaled bike is usually paid at actual cash value, meaning replacement cost minus depreciation and your deductible.

• Bodily injury and property damage liability. Pays for injuries and damage you cause to others, plus legal defense if you are sued.
• Uninsured and underinsured motorist. Protects you when the at-fault driver has no insurance or too little.
• Medical payments. Immediate medical expenses for you or your passenger after a crash, up to the limit you pick.

Which add-on coverages are worth it for motorcycle riders?

The most valuable add-ons protect against depreciation and the money riders put into their bikes. Full replacement cost and new-bike total loss coverage avoid a depreciated payout, and accessories and custom parts coverage pays to restore upgrades. Roadside assistance, trip interruption, carried contents, OEM parts and accident forgiveness round out a policy. Availability, limits and conditions vary by insurer, so we compare them across carriers.

• Full replacement cost. Pays repairs at replacement cost instead of actual cash value.
• Total loss coverage for a new motorcycle. Replaces a recently purchased bike with a new one if it is totaled, within the insurer’s model-year limits.
• Accessories and custom parts. Restores upgrades and customizations.
• OEM parts. Repairs with original-manufacturer parts.
• Roadside assistance and trip interruption. Towing after a breakdown, and help with food and lodging when a trip is interrupted.
• Carried contents. Belongings you carry on the bike.
• Accident forgiveness and disappearing deductible. Limit premium increases and reduce your deductible over claim-free years.
• Enhanced injury protection. Weekly income benefits and a death benefit after a covered accident.

Common discounts include safe riding records, completing a motorcycle safety course, holding a motorcycle endorsement, multiple policies or vehicles, homeownership, paying in full or by EFT, and anti-theft devices.