Recommended Motorcycle Insurance

Without it, You’re F@cked!

Author: Jason Waechter, THE Motorcycle Lawyer^sm

MOTORCYCLE INSURANCE:  WITHOUT IT, YOU’RE F@CKED!

I purposely use the profanity in the title to get your attention-- it is that important. 

Why do I advise you to “Insure your bike?”  Well, it is the law, and if you do not have insurance, you can get a ticket.  However, much more importantly, if you are the operator and owner of the uninsured motorcycle, you are not entitled to No-Fault benefits which may include payment of all medical bills for life*, medical transportation, up to 3 years for house chores and up to 3 years of wage loss*.

I’ve talked to many bikers who are personally stuck with over $100,000 worth of medical bills that would have been paid if they just had the basic, minimal bodily injury coverage that makes them legal.

Other horrible fact: If you do not insure your motorcycle, a police officer can impound it.  There are a few cops that are known for doing this.    

Again, you only need the basic, cheapest PLPD policy to be legal and to qualify for No-Fault benefits.

RECOMMENDED MICHIGAN MOTORCYCLE INSURANCE

As an attorney who has been involved in over 1,000 motorcycle crashes, claims and lawsuits, I recommend the following insurance for Michigan motorcycle owners:

Bodily Injury Insurance Coverage: You must have this type of coverage to be legal. We recommend at least $250,000 of bodily injury coverage.  However, only most basic policy with minimum limits is required.  This protects you and pays for injuries of another if you were negligent.  With motorcycles, it usually applies to your passengers, pedestrians or other motorcycles.

Uninsured Motorist Insurance Coverage: With uninsured motorist coverage, you may still be able to recover compensation for your injuries even if the other vehicle and driver are uninsured or unknown. This can pay for your noncovered medical bills, excess wage loss and  your pain and suffering compensation when the negligent driver has no insurance.  This may be true even if you can’t identify the other driver – for example in a hit-run incident.  To recover in these situations, you must have uninsured motorist coverage.  Physical contact between the vehicle is often required.  We recommend at least $250,000 Uninsured Motorist Coverage, the more the better because this directly benefits you.

Underinsured Motorist Coverage:  If a negligent driver/owner causes an accident and has a small insurance policy that does not adequately compensate you for your injuries (if he or she is UNDER-insured), pay for your noncovered medical bills or excess wage loss, then you may obtain additional money for these damages from your own insurance company if you have Underinsured Motorist Coverage.  We recommend at least $250,000.00 in Underinsured Motorist Coverage and if you can, get the maximum amount you can afford. The more the better because underinsured motorist coverage allows the injured Michigan motorcyclist to collect more for his/her injuries, excess wage loss and pay medical bills he/she is stuck with.

WARNING: If you settle with one insurance company, it could compromise your ability to collect from another including the underinsured motorist coverage of No-Fault benefits.  Call us first.

Collision Coverage: This is up to you if you wish to have it or not.  Michigan law does not allow you to pursue your vehicle (car, truck or motorcycle) damage against the at-fault driver or his insurance company.  Do not ‘just get PLPD’ thinking you can make the other guy pay; you can’t*.  You must decide if your motorcycle is worth replacing or fixing.   The Michigan collision law is worse for motorcycles compared to cars and trucks.  You cannot even make the at-fault driver pay your deductible like a car owner can.  Therefore, chose your deductible amount as if it will never be returned to you in the event of a loss*.

There are three exceptions where you can pursue the negligent driver for motorcycle damage. The exceptions are: 1) If the negligent driver was uninsured, 2) if your motorcycle was reasonably parked and 3) if the damage was caused by a negligent motorcyclist. 

Collision coverage applies to all of your vehicles and there are three types.

Limited Collision: Provides coverage only if you are not at fault.

Standard Collision: Provides coverage regardless of fault and you always pay your deductible.

Broad Form Collision: Provides coverage regardless of fault and if it was not your fault, you don’t have to pay your deductible.

Medical Coverage:  This is additional coverage that you can purchase on your motorcycle.  If you have health insurance that does not exclude motorcycle injuries, it is not necessary in my opinion.  If you ride without a helmet, you must have at least $20,000 of First Party Medical Coverage to be legal.

Custom Work / Accessories Coverage:  Most basic collision policies for Michigan motorcycles only cover a stock bike and maybe $1,000 worth of extras.  If you have customized your motorcycle, you may want to purchase an Accessories Insurance Rider.  Ask your agent if any accessories or customizations comes with your standard Michigan motorcycle policy then decide if you need more.

Storing Your Motorcycle for the Winter & Insurance

When you store your motorcycle for the winter, some people believe they can cancel their motorcycle insurance policy because it will be stored in your garage and, after all, you have home owner’s insurance so that will pay for it.

Here is a legal truth: “YOUR Homeowners insurance Does NOT Cover Your Motorcycle.”

Some folks try to save a few bucks by cancelling their motorcycle insurance during the colder months.  If you do this and your bike is damaged, YOU ARE STUCK with the bill.  Your homeowners won’t pay.

Here are a few examples of unfortunate events that won’t be covered if you cancel your motorcycle insurance policy:  

- Your motorcycle is stolen

- Your garage floods

- Garage catches fire

- Your roof leaks or falls in

- A tree blows over during a storm, hitting garage

- Rodents chew seat and wiring

And of course – You can’t help yourself, on the first beautiful day in March or April and you take a short ride down the street.  If you wreck, you're screwed.  There is no coverage for the damage.

To be safe, I just leave all my motorcycle insurance on my bike for the winter.  If you really need to save every penny, you can drop your Bodily Injury and collision coverage but keep the Comprehensive Coverage.  Comprehensive is what pays for theft, vandalism, falling objects, fire, storms, flood and natural disasters.

Which insurance company pays the No-Fault Benefits for a MOTORCYCLIST?

If you are operating or riding on a MOTORCYCLE and you are involved* in an accident with a motor vehicle* (a car, truck, van, but not another motorcycle), the automobile insurance company that is responsible for paying your No-Fault benefits is determined by the following order of priority: 

1.  Owner or Registrant of the Motor Vehicle Involved – an injured motorcyclist goes first to the automobile insurance company of the owner or registrant of the involved motor vehicle (not motorcycle) for payment of benefits.  If the owner or registrant does not have auto insurance, proceed to the next level.

2.  Operator of the Motor Vehicle Involved – If the operator or the involved motor vehicle (not motorcycle) has automobile insurance, that company pays benefits.  If not, proceed to the next level.

3.  Insurance Company of the Motor Vehicle (not motorcycle) of the Operator of the Motorcycle – If none, proceed to the next level.

4.  Insurance Company of the Motor Vehicle (not motorcycle) of the Owner or Registrant of the Motorcycle – If none, proceed to the next level.

5.  Spouse or Resident Relative – if the injured motorcyclist lives with a spouse or relative that has an insured motor vehicle, that insurance company pays benefits. If not, proceed to the next level.

6.  Assigned Claims Facility – If there is no insurance available at any of the levels described above and there are no exclusions that bar a claim, the Assigned Claims Facility will assign the claim to an insurance company for payment of benefits.

An application for benefits must be made with the correct auto insurance company within one year or benefits do not have to be paid. 

Nutshell: Best Insurance Advice for a Michigan Motorcyclist:

1. Have health insurance. Motorcycle wrecks can come with many medical bills. Depending on how the crash occurs, an auto/No-Fault insurance policy may not have to pay them.  You can be stuck with hundreds of thousands of dollars of medical bills unless you have health insurance.

2. Insure your bike.  It’s the law, but more importantly if you do not, you are not entitled to No-Fault benefits which includes payment of medical bills, house chores, medical transportation and wage loss benefits (in crashes that ‘involve’ a car, truck or van).* 

3. Have Uninsured and Underinsured motorist insurance coverage on your bike (and other vehicles).  This valuable insurance coverage pays YOU if the negligent driver who hit you does not have insurance or enough insurance.  

4. Choose unlimited PIP Medical (or as much as you possibly can afford) on YOUR CARS, TRUCKS, and VANS (your ‘motor vehicles’).  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: By Michigan law, you can’t 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.

5.  After any crash, speak to a specializing attorney who has extensive experience litigating motorcycle injury accidents.  Call me; I will personally apply the specific facts of your situation to the current law.  I’ve handled over 1,000 motorcycle cases. Your rights and ability to recover depends on the specific facts of the accident, who owned the bike, and what kind of insurance covers all involved.  I’ve read letters from ‘personal injury’ lawyers who say they do motorcycle crash cases, who advised the injured motorcyclist wrong.  

Why Do I Recommend These Amounts and Vehicle Insurance?

It's about financially protecting yourself and your family. Riding motorcycles is fun and freeing, but it comes with a risks, and my goal is help minimize the risks whenever possible. My hope is that I've helped educate you on Michigan’s motorcycle law, the best insurance coverage that helps and protect you and set the record straight regarding many of the misconceptions in this confusing area of the law. Keep in mind, laws change and everyone has unique circumstances so if you have any questions specifc to your circumstances, you can visit my FB group "Ask The Motorcycle Lawyer" and ask me or call me.

Why Hire Us:

I ride; I get it.

I’ve had a motorcycle endorsement for going on 20 years.  Riding countless miles on my Harley-Davidson Fat Boy and my Moto Guzzi V7 has helped me go after the negligent drivers and defend my clients against the prejudice and bias motorcyclists often endure after a crash.

Our Specialty: Motorcycle Cases

Motorcycle injury & motorcycle wrongful death cases are our specialty. It’s what we do and do better than anyone else.  After handling 1,000 cases, we have seen it all and know every nuance of Michigan motorcycle law and litigation.

Nearly 3 Decades Experience

For 26 years, Jason Waechter has earned the national reputation as THE Motorcycle Lawyer.  We’ve handled over 1,000 motorcycle injury and death cases.  We’ve seen it all.

Below are one-minute explanations about Michigan motorcycle law, our No-Fault Law for motorcycles and insurance.  We list them in categories so you can easily find what interests you.

MOTORCYCLE & NO-FAULT INSURANCE