MICHIGAN INSURANCE: Requirements & Recommendations

You must insure your motorcycle before you ride. In Michigan these are the following coverage requirements along with our recommendations.

• By law you are required to insure your motorcycle with just the basic 20/40 bodily injury policy.  Failure to have this required insurance will mean the owner and driver of the motorcycle will not be entitled to no-fault benefits. However, an uninsured owner /operator of a motorcycle may still have a third-party or pain and suffering case against the negligent driver.
• You must have “BI” coverage to be legal. We recommend $100,000/$300,000, but only $20,000/$40,000 is required. BI coverage protects you if your negligence causes bodily injury; this includes your passenger.
• It is required.

• Potentially pays you for your injuries if the at-fault driver has no insurance. Hit-and-run accidents would also be covered here even when you do not know the identity of the other driver.* 
• An operator or passenger of a Michigan motorcycle crash may still receive compensation for injury or death even if the other driver hit and ran and his identity is unknown-- this is provided that there is uninsured motorist coverage available to the victim.  The operator of the motorcycle would typically look to the motorcycle's insurance for uninsured motorist coverage. A passenger or non-owner of the motorcycle may be able to collect from a vehicle they own or is in their household if they too purchased uninsured motorist coverage.  See recommended insurance on this site.
• Uninsured Motorist Coverage is inexpensive and a policy for $50,000 worth of coverage can be purchased for as little as $20 per year. If you, your family or friends do not have this coverage, we recommend at least $100,000.00 worth of coverage. 
• It is not required; highly recommended.

• Another important type of insurance coverage is called Underinsured Motorist Protection. If a negligent driver/owner causes an accident and has a small insurance policy that does not compensate you for the full extent of your injuries, then you may obtain additional money from your own insurance company if you have underinsured motorist coverage. 
• Example: As the result of an accident, you suffer serious leg injuries that will cause you to limp for the rest of your life. Your injury arguably could be worth $100,000.00 in pain and suffering damages.  If the negligent driver/owner only has a $20,000.00 bodily injury liability policy and you purchased $100,000.00 of Underinsured Motorist Coverage, you potentially may recover the $20,000.00 of the negligent driver/owners insurance company and an additional $80,000.00 from your insurance company for a total recovery of $100,000.00.
• We recommend at least $100,000.00.  The more coverage, the better because this allows the injured Michigan motorcyclist to collect more for his/her injuries.
• It is not required; highly recommended.

• Pays to fix your bike or pays you the ‘fair market value’ for your bike. 
• You cannot make the other guy’s insurance company pay for your cycle’s damage—not even your deductible.  There are a few exceptions. 
• This is up to you if you wish to have it or not.  You must decide if your motorcycle is worth replacing or fixing.  Again remember you rarely can ever make the at fault driver pay your deductible, so chose you deductible knowing that it will never be returned to you in the event of a loss.
• It is not required; recommended if you do not want to pay for your bike to be fixed.

• We recommend health insurance instead. In our opinion, if you have health insurance, it is not necessary.  
• Not required.

• Most collision policies only cover a stock bike and do not cover custom work or accessories.  If you have customized your motorcycle, you may want to purchase an Accessories Insurance Rider.  Ask your agent if any accessories or customizations are covered on your policy.
• It is not required; recommended if you have customized your bike.