Trying to make sense of Michigan’s Motorcycle Insurance Laws

​If you’re trying to make sense of Michigan’s motorcycle insurance laws, take a number!  When it comes to motorcycle insurance, Michigan has the craziest laws of any state.  This makes buying motorcycle insurance in Michigan very confusing.  What makes the laws so crazy is the fact that the amount of coverage you have depends on what you crash into in an accident.  It basically boils down to two options for motorcyclists in Michigan: Either pay a fortune for adequate medical coverage all the time or go without medical coverage and only have adequate coverage part of the time.  As crazy as it may sound, that’s how Michigan motorcycle insurance laws work.


Here’s a breakdown:


Where Michigan Insurance laws are good for motorcyclists:

• Motorcycle insurance does not require medical benefits coverage like auto insurance does. Medical coverage is offered, but it is optional.

• If you were to crash your motorcycle into an automobile, you are automatically covered medically under that person’s automobile insurance policy regardless of who was at fault. This amounts to unlimited guaranteed lifetime coverage.  That is of course assuming that the driver is carrying required auto insurance as they should be.

Where Michigan laws are bad for motorcyclists:

• Although motorcyclists are not required to purchase medical coverage like you do with auto insurance, you still have to pay the required MCCA fee.  As of now, the state of Michigan charges $160 per year, per vehicle.  But that will go up to $170 starting July 1, 2017.  What really sucks about this is that even though you’re required to pay for it, you can only collect on it if you crash into a regular vehicle.  There is no MCCA coverage if you crash your bike into an object or another motorcycle (by law, the state of Michigan does not consider motorcycles a motor vehicle, due to having less than four wheels).

**Note: MCCA stands for the Michigan catastrophic claims association.  It is a state mandated fund that kicks in and pays when someone’s injuries exceed $545,000.

• The only way to cover yourself medically for hitting an object or another motorcycle is to take out either medical benefits or medical payments coverage on your policy…. Unfortunately with motorcycle insurance, this can get very expensive! For many bikers, it is unaffordable.

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Protecting yourself without breaking the bank


Do yourself a big favor: Take Uninsured Motorist Bodily Injury Coverage.  While this coverage is required in many states, it is optional in Michigan.  As mentioned before, if you have an accident on your bike with a motor vehicle, your injuries will be automatically covered on that motor vehicles auto insurance policy.  The problem is that Michigan has a very high rate of driver’s who are not legally insured as they should be.  The national average of driver’s who are not carrying auto insurance liability coverage as they are supposed to be is about one in every six drivers.  But in Michigan, because of the high auto insurance prices, that ratio is more like one in every four or five drivers.  Uninsured motorist coverage does not cost as much as medical coverage does. And it is very well worth having because there are so many uninsured drivers on the road.
** Note: Remember that in selecting uninsured motorist coverage, you’re only allowed to carry as high of a level as you selected with liability coverage.  So if you settle for Michigan State minimum liability coverage, then uninsured motorist coverage will only cover your injuries up to $20,000.






Medical benefits coverage vs. medical payments coverage.  You’ll have the choice of selecting one or the other if you want medical coverage.  The only real difference between the two is that medical payments coverage stops after three years following an accident, as opposed to medical benefits which do not have time limits.  Another difference is that medical benefits coverage is usually offered at much higher levels than medical payments coverage.  Most companies won’t go any higher with medical payments coverage than $25,000.  But many companies will go over $100,000 with medical benefits coverage.  Dollar for dollar, medical payments coverage is much cheaper than medical benefits coverage.  But again the both of these coverages are pricey.  So you might have a tough decision to make.




Satisfying Michigan’s no-helmet law. 


   In order to legally drive without a helmet, you need to carry at least $20,000 in medical benefits coverage.  $20,000 in medical payments coverage will not work.  I know that sounds completely silly, but that’s how the law is written.






Summary:


      I realize that it is very difficult to choose the right coverage for motorcycle insurance when you have crazy laws like this on the books.  At least now you know what risks you face and you can decide for yourself if you can afford the above mentioned coverage.



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