More time riding, less time thinking about insurance.
Anyone who operates a motor vehicle is required to purchase and maintain a Michigan no-fault coverage consisting of Liability, Personal Injury Protection and Property Protection Insurance. Motorcycles are specifically excluded as a vehicle under the Michigan no-fault law. So as you can imagine there are some very important things you need to be aware of. We’re here to help insure your bike, and make sure you understand how the Michigan no-fault law affects you as a rider.
Motorcycle Insurance 101
Anyone who operates a motor vehicle is required to purchase and maintain a Michigan no-fault coverage consisting of Liability, Personal Injury Protection and Property Protection Insurance.
Motorcycles are specifically excluded as a vehicle under the Michigan no-fault law. So as you can imagine there are some very important things you need to be aware of. Because the owner of a motorcycle can not obtain no-fault coverage where does the operator or passenger of the motorcycle get medical coverage if injured in an accident.
1) If the owner or operator of the motorcycle is involved in an accident with a motor vehicle, (whether at fault or not at fault) the insurance carrier of the motor vehicle involved in the accident will pay for the injured motorcyclist’s medical bills ( LIFETIME UNLIMITED). Please note that the motorcycle must have the minimum liability (PLPD) 20,000/40,000/10,000 to be eligible for the no-fault PIP benefits.
2) If the operator of the motorcycle is at fault in an accident and causes injury or property damage the motorcyclist’s insurance carrier will step in to take care of the injury or damage up to the limits of the Motorcyclist’s policy limits.
3) What happens if the motorcycle is involved in an accident with something other than a vehicle such a tree, deer or even a pothole? You know how Michigan roads are! Where do you get medical coverage from? There are two forms of coverage you can buy Medical Benefits Coverage or Medical Payments to cover your medical bills if this happens. What’s the difference? There is really only a slight difference between the two. Medical Benefits doesn’t have a time limit stipulation on collecting the medical benefits, you can purchase up to $120,000 and it’s pretty expensive.
Medical Payments has a 3-year time limit, from the date of the accident to collect the medical benefit, the maximum you can buy is $25,000 and is more economical. You can choose one or the other but not both if you wear a helmet.
Michigan came out with a new No-Helmet law in 2012 and it came with some stipulations:
- You have to be 21 years of age.
- You must carry 20,000 in Medical Benefits- Kind of made your decision for you! Please note that if your passenger is going to ride without a helmet you will need $40,000 in Medical Benefits.
- You must have held a motorcycle endorsement for at least two years, or have passed an approved motorcycle safety class.
Motorcycle Insurance Coverages
Collision provides coverage when you collide with another vehicle or object including curbs, posts, trees, pot holes and upset or rolling the Motorcycle. This is also an optional coverage but is required if you have a lease or a loan on the vehicle.
This is an optional coverage but required if you have a lease or loan on your motorcycle. If Comprehensive is purchased and there were a loss, the repairs would be taken care of by the insurance company minus your deductible you chose to buy. If there is a total i.e. fire or theft, the bike would be settled on an ACV Actual Cash Value basis which is Replacement Cost minus depreciation minus your deductible or in more simple terms you can go to your local newspaper and see what others with a similar bike and miles is selling theirs for minus your deductible equals the settlement.
Comprehensive coverage protects your bike for most everything except collision or upset of the bike.
Uninsured & Underinsured Motorist
Underinsured & Uninsured Motorist give you protection against those who are not carrying the mandated Michigan no-fault coverages, or don’t have sufficient limits to satisfy a claim. In fact, it’s reported that approximately 20% of Michigan drivers are driving with out insurance.
Bodily injury & property damage
This coverage pays repairs for damages to other vehicles or property, and medical costs for injuries to other drivers if you are sued by someone you seriously injure while on your bike. This will also pay for legal expenses if you’re sued.
You can pick the limit of coverage for medical payments that will cover immediate medical expenses for injuries to yourself or passengers involved in an accident while on you bike.
Full replacement cost (No Depreciation)
Pays repairs at replacement cost value (RCV) rather than actual cash value (ACV).
Unlimited small accident forgiveness
Accidents under $500 won’t increase your premiums.
Large accident forgiveness
Once you’ve had a policy for 4 years, and have stayed claim free for 3 of those years consecutively, you won’t see a premium increase from an accident costing more than $500.
Accessories and custom parts/equipment
Pays the exact amount required to restore your bike including accessories, upgrades, and customizations
If your bike has OEM parts, it will be repaired with OEM parts.
Total loss coverage for a brand new motorcycle
As long as your bike is less than one model year old, or two model years during a renewal -if your bike is totaled, you’ll receive the full MSRP for a brand new bike minus your deductible.
If your bike breaks down or gets stuck within 100 feet of a road, you’ll get a tow to the nearest repair shop free of charge. You can also add trip interruption coverage to pay for food and lodging in the event of an interrupted trip. (Trip interruption requires purchase of roadside assistance coverage)
Provides coverage for all of your personal belongings that you carry on the bike if they are damaged, stolen, or lost.
Drops your deductible by 25% each year you don’t have a claim.
Enhanced Injury Protection
If you’re injured, you’ll receive up to $250 per week for up to two years. Also includes built in life insurance that pays beneficiaries $25,000 in the event of a fatal accident.
Ways to save on motorcycle insurance
Spend more time and money on your bike – here are a list of available discounts to save you money on your annual motorcycle insurance premium.
- safe driver
- Advance Quote
- Multi Policy
- Multi Vehicle
- Switch Discount
- Pay in full
- Pay on time
- Set up EFT
- Homeowner discount
- Lojack Discount
- Motorcycle endorsement
- Safety course completion
- No at-fault accidents