The order of priority for covering motorcycles remains the same under the new No Fault changes in Michigan. This is for collecting medical payments when you are involved in an accident with a vehicle. You collect in the following order:
1) Insurer of the operator of the motor vehicle
2) Insurer of the operator of the motorcycle. (You auto policy.)
3) Insurer of the owner/registrant of the motorcycle.
The one change is if there is no auto policy to collect from; you now turn to the MACP with a $250,000 limit.
Here is the problem. If the policy involved in the order of priority is one that opts out of the PIP Medical Coverages, the motorcyclist will have to file a claim with the MACP with a $250,000 limit. Before this 7-2-2020 change, you always had Unlimited Medical benefits if you hit a car or truck. Also, the motorcyclist is now limited to the No-Fault benefits of the operator of the motor vehicle. It could be Unlimited, $500,000, $250,000, or $50,000. The motorcyclist will not be able to go against the MACP. The only recourse is to sue the at-fault driver for excess medical benefits beyond the coverage the driver selected.
This is why it is more important for you to select higher medical payment limits on your motorcycle policy. In 2018 more than 2,100 motorcyclists were injured and another 134 died in Michigan. Riding in Michigan is now like playing Russian Rolette. You never know what benefits you will have should you hit a car or a truck. The ability for you to collect lifetime medical benefits is dependent on the randomness of whether the vehicle involved in the crash had lifetime no-fault benefits.
Complete Insurance Services has been providing the best insurance protection at the most reasonable prices for over 20 years. As an independent agency representing numerous insurance companies, we specialize in providing personalized insurance coverage that meets the needs of families and business.
Our products include workers’ compensation insurance, auto insurance, business insurance, health insurance, life insurance and much more! Call us to speak with an experienced agent about your personalized insurance needs.
John Linemeyer CPCU
MACP Michigan Assigned Claims Plan formerly the Michigan Assigned Claims Facility.