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 wage loss benefits calculated at 85% of the gross wages, and certain other benefits, 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 motorcyclists 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 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 to for payment of the No-Fault benefits?
If the motor vehicle and it's driver are insured and neither the owner nor the operator of the motorcycles have motor vehicles insured in Michigan, the operator and 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 payment.
If I did not carry the required insurance of the bike, can I get No-Fault benefits?
No! The owner (or a 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 and 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 insures you in Michigan.
Is there a time limit on 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 costs including reasonable 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 motorists insurance. Most insurance policies carrying uninsured motorists coverage provide that 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 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 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 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 okay 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 REQUIREMNET 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 coverages you have and what you are paying. If it does not list what you want or the amount 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 are paid by the fund. The members of the fund are all the insurers of motor vehicles and motorcycles in the state. Each year the fund estimates what its next year payout will be and assesses its members a premium based on the number of vehicles the member insures. The insurer has the option of either paying the premium (which it never does) or passing it on to its 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 of the legislature. Legislative steps to remedy that situation have been stymies 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 the 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 can still 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 for non-economic loss like pain and suffering 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 provided that owners of motor vehicles are entitled to sue the negligent driver in small claims court for up to $500.00 not covered by the plaintiffs own insurance, a 1986 Court of Appeals decision held that the 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 ALL 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 email me at lkatkowsky@katkowskylaw.com.
BUT ALWAYS, RIDE SAFE AND FREE!
© 2004 Lawrence S. Katkowsky
