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Insurance Concerns
The Most Common Questions about
Motorcycle Insurance in Michigan
What is the minimum insurance
Required to get a motorcycle registered in the state of Michigan?
The law requires a motorcycle to carry residual
public liability and property damage insurance in the minimum amount of
$20,000.00 for a single person, $40,000.00 for an entire accident (bodily injury
minimums).
Do motorcycles carry no-fault
insurance coverage like automobile insurance policies?
No! When the Michigan no-fault law was passed,
the legislature was persuaded that motorcycles should be exempted from carrying
no-fault coverage because the cost of such insurance on motorcycles would be too
high, possibly exceeding the cost of the motorcycle.
What is No-Fault Insurance In
Michigan Anyhow?
No-fault insurance provides for the payment of
personal injury protection (PIP) benefits which include unlimited lifetime
medical and related health care expenses, up to three years of of wage loss
benefits calculated at 85% of the gross wages, and certain other benefit, all
irrespective of fault. Coverage is assured for anyone involved in an accident
involving a motor vehicle except motorcycles, including pedestrians,
irrespective of fault.
CAN MOTORCYCLIST STILL OBTAIN
NO-FAULT BENEFITS SINCE THEY DO NOT CARRY THE COVERAGE ON THEIR MOTORCYCLES?
Yes but only if the motorcycle was involved in
an accident with a "motor vehicle", i.e., a motorized vehicle with more than
three wheels which is designed to be driven on the highway and which is not a
motorcycle. If the motorcycle is involved in a single vehicle accident, i.e., a
tire is blown or hits a deer or another motorcycle, neither the motorcyclist nor
his or her passenger are entitled to no-fault benefits.
BUT IF THE MOTORCYCLE IS
INVOLVED IN AN ACCIDENT WITH A "MOTOR VEHICLE" AND THE BIKE DOES NOT CARRY
NO-FAULT INSURANCE, WHO PAYS THE BENEFITS?
Benefits are paid in the following priority: 1)
the insurer of the owner of the motor vehicle involved in the accident. 2) The
insurer of the operator of any motor vehicle involved in the accident. 3)The
insurer of any motor vehicle owned by the operator of the of the motorcycle
involved in the accident. 4) the insurer of any motor vehicle owned by the owner
of the motorcycle involved in the accident.
WHAT IF
THERE ARE NO INSURERS TO LOOK FOR PAYMENT OF THE NO-FAULT BENEFITS?
If the motor vehicle and its driver are
uninsured and neither the owner or the operator of the motorcycles have motor
vehicles insured in Michigan, the operator and the passenger can look to payment
of no-fault benefits from the Michigan Assigned Claims Facility. It will assign
a Michigan automobile insurer to handle the claim and make the required
payments.
IF I DID NOT CARRY THE REQUIRED
INSURANCE ON THE BIKE, CAN I GET NO-FAULT BENEFITS?
No! The owner (or person with exclusive
possession such as one leasing or buying on payments) cannot get no fault
benefits if he or she did not carry the required insurance on the bike! An
operator or passenger who is not an owner can still get those benefits.
IF I AM OUT OF STATE, LIKE AT
DAYTONA OR STURGIS, AND I AM INVOLVED IN AN ACCIDENT WITH A MOTOR VEHICLE CAN I
STILL QUALIFY FOR MICHIGAN NO-FAULT BENEFITS.
Yes, either from the insurer
of the car if it is a Michigan vehicle or by the insurer of any motor vehicle
which insures you in Michigan. Also check the law of the particular state in
which you are injured. you may be entitled to benefits under state law.
If I am hit in Michigan
by a car from out of state, who pays the No-Fault benefits?
The insurer of the car if that insurer also
writes insurance in the state of Michigan, or by the insurer of any motor
vehicle which insurers you in Michigan.
Is there a time limit for
making an application for no-fault benefits?
Yes. You must make application within one (1)
year of the date that expense of wage loss was incurred, and you must sue within
one (1) year of the date that the
claim was incurred."
What if the insurance company
had no reason for denying benefits but was just being nasty?
Under these circumstances a court has
discretion to award reasonable actual cost including attorney fees.
Can I still get no-fault
benefits if there was no actual touching of the car and my motorcycle but the
car was still involved in the crash, like it forced me off the road?
Yes! Some bikers have been getting bad
information from uninformed attorneys or insurance agents who confuse the
Michigan no fault act with uninsured motorist insurance. Most insurance policies
carrying uninsured motorist coverage provide that the same is not payable unless
there is a physical touching. However, numerous appellate decisions in Michigan
make it clear that for no-fault benefits to be paid there does not have to be a
physical touching between the bike and the car as long as the car was somehow
involved in the happening of the accident.
If I am involved in a single
Vehicle motorcycle accident or one with another motorcycle, can I cover myself
for medical payments?
Yes. Each and every insurer writing motorcycle
insurance in Michigan MUST OFFER medical payments coverage to the biker and his
passenger in increments of $5,000.00.Because of the catastrophic nature of
motorcycle injuries and the enormous cost of health care these days, it is
recommended that the biker have at least $20,000.00 worth of medical payments
coverage. It is not that expensive.
I'm a little confused. What is
uninsured motorist coverage?
Uninsured motorist coverage is insurance which
you can obtain which will cover a claim for pain and suffering if the party who
negligently causes the accident is uninsured. It is not a mandatory coverage and
not every insurer will write it.
IF I DON'T HAVE UNINSURED
MOTORIST COVERAGE, CAN I STILL GET DAMAGES FROM THE UNINSURED MOTORIST FUND?
No. That fund went out of existence when the
no-fault laws were passed in the late '70s. so make sure you get uninsured
motorist coverage in at least the $20,000/$40,000 minimum
AM I OK IF I JUST ASK MY AGENT FOR "FULL
COVERAGE"
NO! "FULL COVERAGE" HAS NO LEGAL MEANING. YOU
MUST REQUEST EACH AND EVERY COVERAGE YOU WANT. OTHERWISE THE AGENT HAS NO
REQUIREMENT TO GIVE YOU ANYTHING BUT THE MINIMUM REQUIRED BY LAW!
MORAL: Read
the declarations sheet which you get each time you take out or renew your
policy. It lists the coverage's you have and what you are paying. If it does not
list what you want it is up to you to contact your agent and straighten it out.
If you don't the agent is not responsible and you are not protected.
WHAT IS THE CATASTROPHIC FUND AND WHY AM I
GETTING BILLED FOR IT ON MY INSURANCE?
The catastrophic fund is a creature of the
no-fault law. Any benefits exceeding $300,000.00 are paid by the fund. The
members of the fund are all insurers of motor vehicles and motorcycles in the
state. Each year the fund estimates what its next year payout will be and asses
its members a premium based on the number of vehicles that the member insures.
The insurer has the option of either eating the premium (which it never does) or
passing it on to it's insured in whole or part (usually in whole). Detractors of
the fund point out that the fund has no accountability to the public and does
not have to disclose its books to the public or the legislature. Legislative
steps to remedy the situation have been stymied by the insurance lobby.
CAN I STILL SUE FOR MY PAIN AND SUFFERING AND
OTHER EXPENSES NOT COVERED BY THE NO-FAULT LAW?
You can sue for pain and suffering, fright,
shock, loss of consortium, etc. only if your injury involves either serious
impairment of a bodily function or serious and permanent disfigurement or death.
A recent amendment to the law could be interpreted as providing that the owner
of a motor vehicle or motorcycle who does not have the required insurance on the
vehicle at the time of accident cannot even sue for negligence, let alone
no-fault benefits. Don't take a chance. Be insured.
CAN I GET A JURY TRIAL IN SUCH A CASE?
The law says that you still have a jury trial.
However, recent amendments to the act provide that if there is no real dispute
as to the extent of the injury, then it is the judge who makes the determination
of serious impairment or serious disfigurement except in closed head injuries.
WHAT IF I AM ALSO AT FAULT IN THE ACCIDENT?
Under Michigan law you still can recover with
the percentage that your negligence contributed to the accident being deducted
from the damages. However, recent amendments to the act take away any
recovery if you are more than 50% at fault! This has nothing to do with no-fault
benefits which, like their name, are payable irrespective of fault.
AS A BIKER, CAN I SUE FOR THE PROPERTY DAMAGE
TO MY BIKE CAUSED BY A NEGLIGENTLY OPERATED MOTOR VEHICLE?
In general, No! While Michigan law provides
that owners of motor vehicles are entitled to sue a negligent driver in small
claims court for up to $500.00 not covered by plaintiffs own insurance a 1986
Court of Appeals decision held that bikers were not even entitled to that.
THEN HOW CAN I PROTECT MYSELF FOR PROPERTY
DAMAGE TO MY MOTORCYCLE (OR MY CAR FOR THAT MATTER)?
MAKE SURE THAT YOU CARRY ENOUGH COLLISION AND
COMPREHENSIVE INSURANCE TO COVER YOUR POTENTIAL LOSSES! It makes no sense
to go on roads on a $13,000+ bike and not carry enough collision coverage.
THIS LIST CANNOT BE ALL INCLUSIVE.
Don't be afraid to consult the undersigned at
(248) 901-3400 or (800) 683-9888. Fax us at (248)901-3401 or
E-mail me
lkatkowsky@katkowskylaw.com
ALWAYS, RIDE SAFE AND FREE!
 
ABATE of
Michigan Inc.
P.O. Box 309 Milford, MI. 48381-0309 |
