What Michigan law requires for insurance
A motorcycle is not a motor vehicle under Michigan, according to the no-fault law, so no-fault law does not extend to Motorcycles. The law MCL 500.3101(2)(e) requires that a vehicle have more than two wheels to be a motor vehicle. Even though Motorcycles are not part of the no-fault system you still need motorcycle insurance to register your motorcycle in Michigan.
Michigan motorcycle insurance needed: Bodily Injury and Property Damage
The first section is bodily injury and property damage; this coverage will protect you and your assets if you are sued as the result of an auto accident. In Michigan, someone can sue you if you injure them with your vehicle causing a substantial injury to the other driver, passenger or pedestrian. This coverage also covers the cost of defending you in any suit for damages and also pays for the cost of the defense in addition to your liability limit.
The state requires you to carry these minimum limits:
- $20,000 per person who is hurt or killed in an accident
- $40,000 for each accident if several people are hurt or killed
- $10,000 for property damage in another state
These limits are shown as 20/40/10. If there is a lawsuit against you the court could award a judgment in access of these limits this will usually depend on the severity of the accident and the assets that you have available. It is recommended that you carry higher liability limits.
Medical payments: This coverage is available under your motorcycle insurance policy it pays regardless of who may have been at fault. It pays for an insured person’s reasonable and necessary medical and funeral expenses for bodily injury from a crash. This coverage is usually for increments from $1000 up to $50000. Insurance companies will require you to sign a waiver if you reject purchasing medical payments coverage.
Optional Michigan motorcycle insurance coverages
Collision pays to repair or replace your motorcycle if an accident causes damage. There are three types of collision coverage available in Michigan. This coverage will pay for the damages as long as they don’t exceed your motorcycle’s actual cash value. (Actual cash value is the car’s original purchase price minus the amount it has depreciated)
Standard collision pays for damages to your auto regardless of fault; you will be responsible for paying a deductible if you are a fault.
Broad form collision pays for damages to your auto regardless of fault; you will only have to pay the deductible if you are more than 50% at fault
Limited Collision pays only if you are less than 50% at fault a deductible may or may not apply to depend on if you had one with this option. The claim is not paid if you are over 50% at fault
Comprehensive coverage provides protection for damage not resulting from a collision such as theft, fire, flood, vandalism, explosion, and contact with birds or animals.
Finance companies require comprehensive and collision coverage if you lease or finance your motorcycle. They also require that your deductibles are not higher than $500.
When No-Fault Coverage applies for Michigan Motorcycle Insurance Claims
Even though Motorcycles are not part of the no-fault insurance law. Injured parties may be able to make a claim if the injured party is hit by a car or truck and they are not the title owner of the motorcycle and do not have motorcycle insurance. In the case that this occurs the order of priority of who to make a claim with are:
- The Insurer of the owner of the motor vehicle involved in the accident.
- The Insurance Company of the operator of any motor vehicle involved in the accident.
- The Insurance Provider of any motor vehicle owned by the operator of the motorcycle involved in the accident.
- The Insurer of any motor vehicle owned by the owner of the motorcycle involved in the accident.