Insurance Attorney Advises New Law May Allow Denial of Claim of Michigan Unhelmeted Motorcyclists

As Seen in Thunder Road Magazine

 

 

    At a recent seminar for no-fault attorneys and insurance adjusters, a leading attorney who represents Michigan No-Fault insurance companies advised that the new helmet law may allow an insurance company to argue that they might be able to deny the claims of motorcyclists not wearing helmets.

 

    Most Michigan bikers know that the new law lessens helmet restrictions, allowing motorcycle operators to ride without a helmet under the following restrictions:

• They are 21 years of age or older;
• AND have at least $20,000 of “first-party medical benefits”;
• AND have had a motorcycle endorsement for more than two years (or pass a motorcycle safety course).

 

    What some may not know is that if you are the operator and owner (on the title) of an uninsured* motorcycle when you are in a wreck with a motor vehicle, you are not entitled to Michigan No-Fault benefits.  This is significant because if uninsured, you will be out payment of all medical bills for life, up to three years of wage loss**, payment of household chores, mileage to and from the doctors and attendant care.  Most significantly, you could be stuck with hundreds of thousands of dollars in medical bills.

 

    At the seminar referenced above, the insurance attorney encouraged claims adjusters and defense attorneys to make the argument that, if a Michigan motorcyclist is not wearing a helmet and doesn't have the specific $20,000 of “first-party medical benefits,” then they are not “insured” under the No-Fault law and the insurance company is off the hook from paying No-Fault benefits!

 

    Since the new law passed, I personally have reviewed many insurance policies of motorcyclists who wish to ride without a helmet AND THOUGHT THEY BOUGHT THE REQUIRED $20,000 of “first-party medical benefits.”  Most of the policies I reviewed did not have the right medical coverage!  The most frequent reason being: The particular insurance company did not offer it, so they were sold something else.  Another was the insurance was purchased on-line and the specific medical coverage was not part of the choices.  The last frequent reason I saw was that the agent who sold the policy was not knowledgeable about this issue.

 

    Rule #1: Always have insurance on your motorcycle.  All that is required is the basic 20/40 policy.  If you don’t have it on the motorcycle you own, you don’t get No-Fault benefits.

 

    Rule #2: If you ride without a helmet, make sure you follow the requirements listed above EXACTLY.

 

    Caveat 1: If you ride without a helmet, beware that even if you have motorcycle insurance and you attempted to buy the newly required medical benefits coverage, you may have ended up with something else.  AS A RESULT, THE INSURANCE INDUSTRY MAY TRY TO DENY YOUR CLAIMS.     

 

    Caveat 2: If you ride without a helmet and you are in a wreck, the defense attorney may argue that you were negligent for not wearing a helmet.  Perhaps the most surprising of all is Michigan’s 50% Rule-- if you are found to be more than 50% negligent, you are NOT entitled to non-economic (pain and suffering) damages.

 

    So, maybe you were only going 5mph over the speed limit and you were not wearing a helmet when a car driver turns left in front of you.  They might say, “I just could not see him, motorcycles are hard to see.”  If a jury wrongly adds up the “unreasonableness” of all involved and you are assigned 51% - you get nothing for all the injury they caused!

 

Author’s Analysis: I think these defense arguments are a bunch of bull and it would be slimy for an insurance company to attempt to deny claims based on these arguments.  The law that talks about an uninsured motorcyclist being excluded from No-Fault benefits refers to not having the required Bodily Injury coverage.  To argue and ultimately deny benefits to an unhelmeted motorcyclist who has Bodily Injury coverage, but not the $20,000 of “first-party medical benefits” is a huge stretch. I think denying a No-Fault claim for this reason would be disingenuous and it would ultimately fail.  The problem is that it may take months or years to get it straightened out and irreparable harm may have occurred to the motorcyclist because of the denial.  Also, even if the opportunity presents itself to the insurance company, I think it is unlikely that this will be commonly attempted.

* This attorney points to specific laws that say: “Uninsured” means: “maintain security for payment of benefits under personal protection insurance, property protection insurance, and residual liability insurance.” Or “shall provide security against loss resulting from liability imposed by law for property damage, bodily injury, or death suffered by a person arising out of the ownership, maintenance, or use of that motorcycle.” 

  

** Up to approximately $5,100 per month for up to three years.

 

 

 

Attorney Jason A. Waechter is a Michigan attorney specializing in the areas of motorcycle and motor vehicle injury litigation as well as Michigan’s Motor Vehicle No- Fault Law. Mr. Waechter has collected millions of dollars in settlements, awards and verdicts for his motorcycle clients over the past 20 years.  A portion of each case settled goes to educational resources for bikers, funds to help bikers while their cases are being litigated and our motorcycle accident prevention campaign.  Call Attorney Jason Waechter toll free at 1-877-BIKER LAW. Or visit

* There are exceptions—if the guy was uninsured.  Further, the law is very fact dependent and there are many nuances and exceptions depending on your particular circumstances. Therefore, given the limited space, it is impossible to cover everything. Do not rely on this short article to protect your rights.