Michigan Motorcycle Insurance: Difference Between Medical Benefits and Medical Payments?

Discussion in 'P&C Insurance Forum' started by BlockO, Apr 15, 2012.

  1. BlockO
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    BlockO Well-Known Member

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    This is a question that only applies in the state of Michigan and only applies to motorcycle insurance (not auto).
    What's the difference between medical benefits coverage and medical payments coverage on a motorcycle insurance policy?
    The only difference I noticed in the verbiage between the two policies are that medical payments coverages cease after 3 years from the accident, whereas medical benefits coverage continue indefinitely.
    Is that the sole reason that motorcycle medical benefits rate about 2.5 x higher than medical payments of the same magnitude, or am I missing something?
     
    Last edited: Apr 15, 2012
  2. Philly
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    Philly Well-Known Member

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    I spoke with my friend that is a marketing rep. for Progressive in Michigan and like you said the difference between the two are that medical payments is for 3 years from the accident and the other one does not have that limit. Hope that helps.
     
  3. BlockO
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    BlockO Well-Known Member

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    thanks Philly. Is that the ONLY difference?

    it just strikes me as odd that such a minor difference in coverage makes such a major difference in premium. Especially in a state that has a law that says when a motorcycle collides with an auto, the auto's policy covers both parties medical-wise.

    I thought maybe I was missing something.
     
  4. Philly
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    Philly Well-Known Member

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    Hi Dan,

    He said that was the only difference between the two. It does make a pretty big difference in premium.
     
  5. sdmillar
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    sdmillar Well-Known Member

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    I have noticed a lot of motorcycles out there this spring with riders without helmets. I don't have a problem with it as long as my tax dollars are not being used to pay for their care on life support after they splatter their head along the freeway while not wearing a helmet.

    I don't do home and auto, but I believe they can ride without a helmet IF they have additional coverage to cover the inevitable?
     
  6. BlockO
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    BlockO Well-Known Member

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    sdmillar: "I believe they can ride without a helmet IF they have additional coverage to cover the inevitable?"

    you are correct but only as of last week. Gov. Snyder just signed the repeal into effect 4 days ago. so if you saw riders w/o helmets prior to that, they were breaking the law.

    as of now, riders can go without a helmet as long as:
    1. they are 21 or older.
    2. they have 20K worth of medical.

    My guess is that agents will be getting some calls this week from policyholders wanting to know how much medical they currently have on their MC policy.
     
  7. sdmillar
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    sdmillar Well-Known Member

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    $20k in medical? That hardly seems like enough to cover the costs of a high speed bike lay down on the freeway. After that its on the tax payer?
     
  8. BlockO
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    BlockO Well-Known Member

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    it depends on what the motorcycle crashes into. if a bike collides with a car, the car's medical coverage covers both parties. that basically means the motorcyclist's medical coverage is secondary.

    but if a bike hits another bike, or hits a fixed object, then yes, the medical coverage on the motorcycle policy is all there is.

    I agree that 20K is very inadequate. but that's the new law and it is what it is.

    also keep in mind that bikers have to pay into the same $145 MCCA catastrophe pool per year per vehicle just like everyone else does.
     
  9. TwiLight
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    TwiLight Well-Known Member

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    The actual difference is: medical payments are usually tied to the bodily injury liability insurance instead of a lawsuit from a passenger. The medical benefits are on the driver of the bike.

    In Michigan, under NO-Fault. If the driver is injured in a motor vehicle accident with a Car/truck the Medical bills are paid by the other vehicles medical coverage period.

    Medical Benefits are only paid in non-vehicle accidents. such as dumping the bike, etc. where there is no other vehicle involved.

    The key in Michigan is that you should carry high Uninsured/Underinsured benefits and lower medical benefits to cover your deductible/out of pocket expenses on your Health insurance unless it is excluded specifically for Motorcycle accidents. Which is rare.
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    The Helmet law was just repealed in Michigan. A 30 year struggle. You will see a rise in your MCCA fee that covers medical over $350k for insurers.

    Michigan is the only State that has unlimited Medical in Auto accidents. The MCCA fee is the fund that each driver pays per insured vehicle that the State holds for insurers that have claims over $350k. It is about $140/year per vehicle now. this fee goes up/down depending on the reserves in the fund. In the late nineties it was as low as $28/yr when it was overfunded the previous decade which was about $128/yr.
     
    Last edited: Apr 16, 2012
  10. Philly
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    Philly Well-Known Member

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    This is an email I received today:

    INSURING AGREEMENT - MOTORCYCLE MEDICAL PAYMENTS COVERAGE

    If you pay the premium for this coverage, and no other insurance coverage applies for medical expenses (including, but not limited to, Medical Payments Coverage, Personal Injury Protection Coverage, Motorcycle Medical Benefits Coverage, and No-Fault Coverage) we will pay the reasonable expenses incurred for necessary medical services received within three years from the date of a motor vehicle accident because of bodily injury:
    1. sustained by an insured person;
    2. caused by a motorcycle accident that occurs within the State of Michigan; or
    3. any accident that occurs outside the State of Michigan; and
    4. arising out of the ownership, maintenance, or use of a motor vehicle, trailer, or transport trailer.

    We, or someone on our behalf, will determine:
    1. whether the expenses for medical services are reasonable; and
    2. whether the medical services are necessary.



    INSURING AGREEMENT - MOTORCYCLE MEDICAL BENEFITS COVERAGE

    If you pay the premium for Motorcycle Medical Benefits Coverage, and no other insurance coverage applies for medical expenses (including, but not limited to, Medical Payments Coverage, Personal Injury Protection Coverage, Motorcycle Medical Payments Coverage, and No-Fault Coverage), we will pay the reasonable expenses incurred for necessary medical services because of bodily injury:
    1. sustained by an insured person;
    2. caused by a motorcycle accident that occurs within the State of Michigan; or
    3. any accident that occurs outside the State of Michigan; and
    4. arising out of the ownership, maintenance, or use of a motor vehicle.

    We, or someone of our behalf, will determine:
    1. whether the expenses for medical services are reasonable; and
    2. whether the medical services are necessary.
     

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