Motorcycles and No-Fault Law: What You Need to Know 2023

Published Saturday, October 28, 2023

When it comes to no-fault insurance, motorcyclists follow a unique set of rules. Unlike drivers of traditional vehicles, motorcyclists are not required to purchase mandatory auto no-fault insurance. However, if a motorcyclist is injured in an accident involving a motor vehicle, they are entitled to full no-fault Personal Injury Protection (PIP) benefits. This creates a distinct category of claimants, and here's what you should understand:

Eligibility for No-Fault PIP Benefits: In Michigan, a motorcycle is not considered a "motor vehicle" under the No-Fault Act. Therefore, if a motorcyclist is solely involved in an accident with their motorcycle, they won't be eligible for no-fault PIP benefits. However, if the accident involves another motor vehicle, such as a car or truck, the motorcyclist becomes eligible for no-fault PIP benefits. In this scenario, there doesn't need to be physical contact between the motorcycle and the motor vehicle. What matters is that the motorcycle injury somehow relates to the operation of the motor vehicle. If the motor vehicle is in fairly close proximity and causes the motorcycle to lose control or contributes to the collision in any way, the motorcyclist is entitled to PIP benefits.

Motorcycle Disqualification: Section 3113 of the Act introduces two disqualifications that apply to motorcycle owners. First, a motorcycle owner without traditional liability coverage (commonly known as PLPD coverage) cannot recover PIP benefits in a motorcycle/motor vehicle accident. However, this disqualification only applies to the motorcycle's owner or registrant and not to non-owner passengers. Second, a motorcyclist operating a motorcycle where they were identified as an excluded operator won't be eligible for no-fault PIP benefits in a motorcycle/motor vehicle accident.

Identifying the Responsible Insurer: The No-Fault Act includes specific "priority rules" for motorcycle accidents to determine which insurance company is legally responsible for paying the claim. These rules are outlined in §3114(5) of the Act and prioritize insurers in the following order: the motor vehicle owner or registrant's insurer, the motor vehicle operator's insurer, the motorcycle operator's auto no-fault insurer, and the motorcycle owner or registrant's auto no-fault insurer. If none of these levels can provide benefits, the person can seek compensation through the Assigned Claims Plan, discussed in Section 4.

Motorcycle Accidents in Other States: The No-Fault Act allows Michigan residents who are injured while operating or riding a motorcycle in another state to recover no-fault PIP benefits. To be eligible, the motorcyclist must have been a named insured under a Michigan auto no-fault insurance policy or the spouse or resident-relative of someone insured under such a policy at the time of the accident. In that situation, the Michigan motorcyclist would obtain the no-fault PIP benefits from the motorcyclist’s auto no-fault insurer (the biker’s car, truck or van policy).  To recover PIP benefits in an out-of-state accident, it's likely necessary to demonstrate that the injury arises from a "motor vehicle accident" rather than an accident solely involving motorcycles. While this issue hasn't been explicitly addressed by Michigan appellate courts, it's essential to show that the injury occurred in a manner related to a motor vehicle in some way for PIP benefits to be applicable.

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