Freedom of Choice and Insurance 101

As Seen in Thunder Road Magazine

 

 

 

If you read last month’s column, you know that I promised a longer discussion about insurance for my November article. That is still the plan, but first I need to get the word out on a Senate Bill that could affect Michigan bikers’ right to choose whether or not to wear a crash helmet, and what the Bill could mean for motorcyclists.

 

Senate Bill 527 (SB 527) was introduced on September 29, by Senator Rebekah Warren (D-Ann Arbor). It would amend part of the Michigan Vehicle Code (MCL 257.658) by requiring that all motorcyclists wear a crash helmet while on or riding their bikes. That’s right: this Bill would reverse the 2012 helmet repeal law and force all riders (including passengers) to wear a crash helmet. There would be no provisions or exceptions for riding helmetless. The bill would also require anybody aged 19 or younger riding a moped on a public thoroughfare to wear a helmet. It has been referred to the Committee on Transportation.

 

This isn’t the first time a Bill to reinstate mandatory helmet laws has been introduced. A similar Bill was proposed in 2014, and didn’t make it past committee. So for now, this is a “wait and see” situation, but I wanted to get the word out to readers and invite you to join the discussion on Facebook (Facebook.com/TheMotorcycleLawyer).

 

For the time being, Michigan motorcyclists are not required to wear a helmet to ride, but they are required to carry certain insurance. The next few paragraphs will give the basics of what insurance coverage motorcyclists must have, and what I recommend you should have based on my experience as a rider. I strongly encourage all of you to see an insurance expert to go over your current coverage and see if you have everything you need (and want) to protect you in case of an accident.

 

Michigan motorcyclists are required to carry Bodily Injury (BI) coverage in order to ride legally. Bodily Injury coverage protects you if your negligence causes a physical injury; this coverage also applies if your passenger is injured due to your negligence. The bare minimum you must carry is $20,000 / $40,000, but I recommend carrying $100,000 / $300,000; it's worth it.

 

While not required by law, Uninsured Motorist Coverage can pay for your injuries if the at-fault driver in the crash is not insured; hit-and-run crashes can also be covered, even if you don't know the at-fault driver's identity. Uninsured Motorist Coverage is inexpensive and could save you a lot of grief. I recommend carrying at least $100,000 worth of coverage.

 

 Next, there's Underinsured Motorist Coverage. Note the name: under-insured is not the same as un-insured. Underinsured Motorist Coverage kicks in if the negligent driver in a crash has a small insurance policy that won't provide enough compensation for your injuries. Having this type of coverage is not required by law, but I always recommend it, and the more the better. I suggest carrying $100,000 or more… the more coverage you have, the more you could collect for your injuries in the case of a crash.

 

I get so many calls from bikers who want to know how to get their motorcycles fixed after a crash. For that, you need Collision Coverage, which can cover the cost of repairs or pay out a "fair market value" if the bike is totaled. Note: Collision Coverage typically only covers damage to the "stock" bike. If you have custom work or any accessories, you may need an Accessories Coverage rider as well. Be very specific with your insurance agent about what you want coverage for. Collision and Accessories Coverage are not required, but I'd recommend them if you're worried about costly repairs, or if you have a lot of custom work done to your ride.

 

Finally, there is a specific insurance requirement if you want to ride your motorcycle without wearing a helmet. Each rider on the bike needs to have at least $20,000 in first-party medical benefits coverage in order to ride without a helmet. That means you need $20,000, and if you're carrying a passenger, they also need an additional $20,000 in first-party medical benefits coverage to be legal.

 

Obviously, I can't cover all aspects of insurance in a single article; moreover, I look at insurance from a personal injury law perspective. Talk to an insurance expert to learn more about what you need and want to cover; it's not a bad idea to go over your policy on a fairly regular basis to make sure you're still getting what you want and covered for what you need.

 

 

One final note: I recommend you do not cancel your motorcycle insurance during the off-season. If you store your bike on your property during the winter, your homeowner's policy will not cover damages to your bike if something goes wrong. As a bonus, keeping your insurance active year-round means you can ride the minute the weather gets nice enough, if you want to. Seems worth it to me.