RECOMMENDED INSURANCE FOR MICHIGAN MOTORCYCLISTS

What is Under-Insured (UIM) coverage on my Michigan motorcycle insurance policy?

Under Insured Motorist Coverage (UIM): this insurance coverage is just like uninsured motorist coverage, but instead oof the negligent driver not having any insurance, they have some but not enough to cover all your damages.  It too can compensate you for unpaid medical bills that are in excess of the PIP medical coverage and pain and suffering compensation.

An example may make it clearer: let’s say a car rear ends you and breaks your leg and you have surgery.  The medical bills are $300,000.  The negligent driver that hit you had $50,000 of Bodily Injury Coverage and PIP Medical Coverage of $250,000.  You can file a negligence claim with your own motorcycle insurance company but only if you obtained UNDER Insured Motorist Coverage.

In this example, let’s assume you had $500,000 worth of UIM coverage in your injury was worth $400,000.  The negligent driver’s insurance company would pay $50,000 towards your bodily injury, there PIP medical coverage of $250,000 would pay that amount leaving you $50,000 owed on medical bills.

Your UIM coverage would pay the $50,000 excess of medical bills and up to $450,000 for your bodily injury (pain-and-suffering ).  Because you had lots of UIM coverage, all the medical bills were covered and you were fully compensated for your injury.

I recommend the most UIM coverage that you can afford.  I have a $1 million policy.  I recommend at least $250,000.

RECOMMENDED INSURANCE FOR MICHIGAN MOTORCYCLISTS

What is Uninsured Motorist Coverage?

Uninsured Motorist Coverage (UM): this insurance coverage potentially pays you if the negligent driver did not have any insurance.  It can compensate you for unpaid medical bills that are in excess of the PIP medical coverage and pain and suffering compensation.

An example always makes this clearer: let’s say a car rear ends you and breaks your leg and you have surgery.  The medical bills are $300,000.  The negligent driver that hit you had no insurance.  So your PIP medical comes from the motorcyclists car insurance and there’s only a $250,000 in coverage.  You can file a negligence claim with your own motorcycle insurance company but only if you obtained uninsured motorist coverage.

The uninsured motorist coverage potentially will pay you your pain-and-suffering money for your injury and the $50,000 of medical bills that are unpaid.  Without uninsured motorist coverage, you would be stuck with $50,000 in medical bills to pay and you would most likely get no money for your pain-and-suffering.

I recommend as much uninsured motorist coverage as you can afford as possible.  I have a one-million-dollar policy.  I recommend at least $250,000.

RECOMMENDED INSURANCE FOR MICHIGAN MOTORCYCLISTS

What insurance coverage should I have on my Michigan motorcycle?

Insurance protects you and may pay you in certain situations. Therefore, when thinking about the amount of coverage, the answer is usually the most you can afford. Some limits are discussed below.

As for the kinds of coverage:

- Bodily injury coverage: all motorcycle insurance policies come with bodily injury coverage.  This insurance protects you if you make a mistake and cause injury to another (think passenger). The current minimum in Michigan is $250,000. Your agent may advise you that you can get $50,000 worth of coverage if you sign a special acknowledgment form. I recommend at least $250,000 of bodily injury coverage.

 - Uninsured Motorist Coverage (UM): this insurance coverage potentially pays you if the negligent driver did not have any insurance.  It can compensate you for unpaid medical bills that are in excess of the PIP medical coverage and pain and suffering compensation.

An example always makes this clearer: let’s say a car rear-ends you and breaks your leg and you have surgery.  The medical bills are $300,000.  The negligent driver that hit you had no insurance.  So your PIP medical comes from the motorcyclists car insurance and there’s only a $250,000 in coverage.  You can file a negligence claim with your own motorcycle insurance company, but only if you obtained uninsured motorist coverage.

The uninsured motorist coverage potentially will pay you your pain-and-suffering money for your injury and the $50,000 of medical bills that are unpaid.  Without uninsured motorist coverage, you would be stuck with $50,000 in medical bills to pay and you would most likely get no money for your pain-and-suffering.

I recommend as much uninsured motorist coverage as you can afford as possible.  I have a one-million-dollar policy.  I recommend at least $250,000. 

Under Insured Motorist Coverage (UIM): this insurance coverage is just like uninsured motorist coverage, but instead of the negligent driver not having any insurance, they have some but not enough to cover all your damages.  It too can compensate you for unpaid medical bills that are in excess of the PIP medical coverage and pain and suffering compensation.

An example may make it clearer: let’s say a car rear ends you and breaks your leg and you have surgery.  The medical bills are $300,000.  The negligent driver that hit you had $50,000 of Bodily Injury Coverage and PIP Medical Coverage of $250,000.  You can file a negligence claim with your own motorcycle insurance company but only if you obtained UNDER Insured Motorist Coverage.

In this example, let’s assume you had $500,000 worth of UIM coverage in your injury was worth $400,000.  The negligent driver’s insurance company would pay $50,000 towards your bodily injury, there PIP medical coverage of $250,000 would pay that amount leaving you $50,000 owed on medical bills.

Your UIM coverage would pay the $50,000 excess of medical bills and up to $450,000 for your bodily injury (pain-and-suffering ).  Because you had lots of UIM coverage, all the medical bills were covered and you were fully compensated for your injury.

I recommend the most UIM coverage that you can afford.  I have a $1 million policy.  I recommend at least $250,000.

HEALTH INSURANCE AND MICHIGAN MOTORCYCLE ACCIDENTS

Does my Medicare cover me in a Michigan motorcycle accident?

The short answer is, it will if needed. Let me explain further. The motorcyclist first looks to see if he or she qualifies for Michigan no-fault benefits. If so, medical bills are paid from that no-fault policy up to the amount of PIP Medical Choice coverage. Once the PIP medical choice coverage is exhausted then Medicare will (should) cover the rest of the bills.

It is important to note: if Medicare pays any medical bills from your motorcycle accident and you obtain personal injury proceeds on a negligence claim against the at fault driver, Medicare has a lien on your proceeds; meaning, Medicare gets reimbursed from your pain-and-suffering money and you are left with less.  See our recommended insurance advice found in our videos, e-books and legal guide.

Where do Michigan motorcyclists get their no-fault benefits from which includes PIP medical?

Michigan’s no-fault law is an “order of priority” system.  It is basically a list that we follow in order to find an auto insurance policy in place at the time of the crash.

A Michigan motorcyclist that qualifies for no-fault benefits follows this order of priority under MCL 500.3114(6):

1.  Insurer of the owner or registrant of the motor vehicle involved.  Again this means the car involved.

2.  The insurer of the operator of the motor vehicle involved.

3  The insurance company of the motor vehicle, this means car, of the operator of the motorcycle.

4.  The insurance company of the motor vehicle, this means car, of the owner or registrant of the motorcycle.

5.  The auto insurance of a resident relative of the motorcyclist.

6.  The Michigan assigned claims facility.

What are no-fault benefits may be available to a Michigan motorcyclist after a motorcycle wreck?

When a Michigan motorcyclist is entitled to no-fault benefits they include:

 - Wage loss for up to three years with a maximum per month approximately $6100.

 - Up to $20 per day for household chores

 - Medical mileage / transportation

 - Medical bill payment up to the amount of the PIP medical choice of the no-fault policy that applies 

 - Attendant care: family, friends or professional service is paid to perform nursing-type care to the injured motorcyclist.

PIP MEDICAL FAQ’s FOR MICHIGAN MOTORCYCLES

What is PIP Medical insurance for Michigan motorcycle insurance policies?

PIP Medical is a No-Fault benefit that pays medical bills after a ‘motor vehicle’ accident (an accident the involves a car, truck or van).  No-Fault policies  are available on “Motor Vehicles” again meaning cars, trucks and vans—not motorcycles.  

In 2020, for the first time in Michigan’s No-Fault history, we went to PIP Medical choice coverage for our “motor vehicles’” (cars, trucks, vans, not motorcycles).

Michigan No-Fault Medical coverage used to pay for all auto-injury related medical bills for life. It was the best coverage in the country. We now must choose our desired amount of PIP Medical coverage. The choices are:

Unlimited PIP Medical coverage (same as old law)

$500,000 PIP Medical coverage

$250,000 PIP Medical coverage

Qualified Medicaid recipients: $50,000 coverage

A “Qualified Person” may opt out entirely: Available only to those with other

“Qualified Health Insurance” or Medicare that covers car accidents injuries.

No-Fault benefits never come from your motorcycle insurance. You cannot buy No-Fault insurance on a motorcycle. You can purchase a different kind of medical coverage called ‘First Party Medical’ on your motorcycle. Talk to your insurance agent to see if it is right for you. I don’t recommend it if you have health insurance that covers vehicle accidents.

Is there PIP Medical Insurance available on Michigan motorcycles?

No. You cannot buy No-Fault insurance on a motorcycle. PIP Medical is a No-Fault benefit, and those policies are only on “Motor Vehicles” meaning cars, trucks and vans—not motorcycles.  

A Michigan motorcyclists can get their medical bills paid by PIP Medical insurance No-Fault benefits never come from your motorcycle insurance. You can purchase a different kind of medical coverage called ‘First Party Medical’ on your motorcycle. Talk to your insurance agent to see if it is right for you. I don’t recommend it if you have health insurance that covers vehicle accidents.

When is a Michigan motorcyclist entitled to no-fault benefits?

A Michigan motorcyclist is entitled to no-fault benefits when a “motor vehicle” which basically means car truck or van (not motorcycle) is “involved” in the accident. A motorcycle is not defined under Michigan’s no-fault law as a “motor vehicle.”  This is important because only when a motor vehicle is involved in the motorcycle crash are you entitled to no-fault benefits. 

Therefore, the following types of crashes do not involve a “motor vehicle” and therefore the motorcyclist would not be entitled to no-fault benefits: single motorcycle accident, motorcycle hits loose gravel, a pothole, an animal (dog, deer, farm animal), goes wide and off road, etc.

It is also important to note that there is an exclusion under the law: if you are the owner and operator an uninsured motorcycles you are not entitled to no-fault benefits.

MICHIGAN NO-FAULT BENEFITS AND MOTORCYCLES

Can my car insurance affect me if I’m in a Michigan motorcycle accident?

Yes. I recommend that you choose Unlimited PIP Medical (or as much as you possibly can afford) on YOUR CAR's, TRUCK's, and VAN's (your ‘motor vehicles’) insurance policy.

Why? Because if you get in a wreck and the at-fault driver is uninsured, your No-Fault benefits will come from insurance on YOUR motor vehicle (car, truck or van, not motorcycle).

FYI: You cannot buy No-Fault insurance on a motorcycle. No-Fault benefits never come from your motorcycle insurance. You can purchase ‘First Party Medical’ coverage on your motorcycle. Talk to your insurance agent to see if it is right for you. I don’t recommend it if you have health insurance that covers vehicle accidents.