Michigan no-fault insurance and motorcycle injury claims

Special laws apply to Michigan motorcyclists involved in an accident.  Simply put, you need to know how Michigan no-fault insurance will affect your motorcycle personal injury claim. 

Anyone who operates a motor vehicle in Michigan is required to purchase a no-fault insurance policy. A no-fault policy includes three mandatory coverages: Personal Injury Protection (PIP); Property Protection (PPI); and Bodily Injury and Property Damage Liability (BI/PD). If you are injured in a motor vehicle accident, the PIP portion of the auto insurance policy pays for unlimited medical and rehabilitation expenses of any insured person, his or her family members, and any other injured persons such as pedestrians, bicyclists and motorcyclists.

Motorcycles are specifically excluded as a motor vehicle under Michigan’s no-fault law

Motorcycle claims are paid depending on whether the motorcycle accident involves an insured motor vehicle. If the motorcycle accident does involve an insured motor vehicle, the insurance company of the motor vehicle involved will pay unlimited medical benefits for the injuries of the motorcyclist, regardless of who was at fault in the accident. If the accident does not involve a motor vehicle, the motorcyclist does not have unlimited coverage for injuries. This is because they are not eligible for, and have not purchased full PIP coverage. If optional medical treatment coverage was purchased, the amount the insurance company will pay for medical treatment will be limited to that amount.

This brief summary illustrates the complexity of Michigan no-fault insurance. If you have been injured in a motorcycle accident, please contact Keller & Keller for a free analysis of your claim.

Due to this exclusion, motorcyclists are unable to purchase a no-fault policy that provides unlimited PIP coverage. Motorcyclists are only required to purchase minimal liability coverage which protects against liability for property damage, bodily injury or death suffered by another person arising out of the use of a motorcycle. Insurers that write motorcycle coverage are also required to offer medical benefit coverage. This coverage pays for medical treatment to a motorcyclists if they are injured in a motorcycle accident and no other coverage is available. This coverage is sold in increments of $5,000.00. The amount of medical benefit coverage purchased is the limit the insurance company will pay for any medical treatment due to the accident. Medical benefit coverage is not mandatory, and motorcyclists have the option of choosing whether to purchase this type of coverage. 
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