Michigan Motorcycle Insurance Requirements: No-Fault Exclusion Explained

Quick Answer: Is Motorcycle Insurance Required in Michigan?

Yes. Under MCL 500.3103, every Michigan motorcycle owner or registrant must carry liability security that meets the same limits as cars: $250,000 per person and $500,000 per accident for bodily injury, and $10,000 for property damage, the figures in MCL 500.3009(1). What a motorcycle policy does not need is personal injury protection: motorcycles sit outside Michigan's no-fault system, which changes who pays your medical bills after a crash.

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The Liability Limits, and the Lower-Limit Election

MCL 500.3103(1) ties motorcycle security to section 3009(1), the same bodily injury and property damage limits that apply to car policies. Since policies issued or renewed after 1 July 2020, those limits are $250,000 / $500,000 / $10,000. The 20/40/10 figure still quoted online is the pre-2020 limit.

For car policies, MCL 500.3009(5)–(6) lets the policyholder sign a state form choosing lower bodily injury limits, but never below $50,000 per person and $100,000 per accident. That election is written for automobile policies, so ask your insurer which bodily injury limits it will write on a motorcycle policy rather than assuming the car-policy election applies.

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Motorcycles and Michigan's No-Fault System

Michigan's no-fault act defines a "motor vehicle" as a vehicle with more than two wheels, and then excludes motorcycles and mopeds from it outright (MCL 500.3101). That is why a motorcycle policy does not carry PIP. It has three practical consequences:

1. A crash involving a car: the car's insurer pays first

When a motorcycle rider or passenger is hurt in an accident that involves a motor vehicle, MCL 500.3114(5) sets who pays their PIP benefits, in this order:

1. The insurer of the owner or registrant of the motor vehicle involved
2. The insurer of the operator of the motor vehicle involved
3. The motor vehicle insurer of the motorcycle's operator
4. The motor vehicle insurer of the motorcycle's owner or registrant

The test is whether a car was involved, not who was at fault. A rider who also insures a car is further down the list, behind the car's own insurers.

2. A crash with no car involved: no PIP

A single-vehicle crash, or one between two motorcycles, does not involve a "motor vehicle" as the no-fault act defines it, so the PIP priority list does not apply. Your own medical bills then fall to your health insurance and to any first-party medical coverage on your motorcycle policy.

3. Suing a car driver: the threshold still applies

MCL 500.3135(1) says a person is liable for noneconomic loss (pain and suffering) caused by their use of a motor vehicle only if the injured person suffered death, serious impairment of body function, or permanent serious disfigurement. Nothing in the section exempts motorcyclists. So when you sue a car driver for pain and suffering, the claim arises from their use of a motor vehicle, and the same serious-impairment threshold applies.

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The Medical Coverage Insurers Must Offer

Because motorcycle policies carry no PIP, the gap for a no-car crash is real. MCL 500.3103(2) addresses it: insurers must offer a motorcycle owner or registrant first-party medical benefits only, in increments of $5,000, payable when the owner or registrant is involved in a motorcycle accident.

It is optional, but the insurer cannot decline to offer it. Ask for it by name, and choose the amount with the no-car scenario in mind, because that is the crash where it is the only medical coverage on the motorcycle policy.

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Mopeds and What Counts as a Motorcycle

A scooter that exceeds the moped limits is a motorcycle under the no-fault act if its motor is over 50cc, and needs liability security like any other motorcycle.

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Penalties for Riding Without Insurance in Michigan

Under MCL 500.3102(2), an owner or registrant who operates a motorcycle, or lets it be operated, on a public highway without the required security is guilty of a misdemeanor:

The bigger exposure is civil. A rider without liability security who injures someone is personally responsible for the damages the law allows the injured person to recover.

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Optional Coverage Riders Add

• First-party medical benefits. Covered above: insurers must offer it in $5,000 steps.
• Uninsured and underinsured motorist coverage. Not part of the required security. It pays your injury damages when an at-fault driver has no insurance or too little.
• Collision. Repairs to your motorcycle after a crash, minus the deductible. Lenders require it on financed bikes.
• Comprehensive. Theft, fire, vandalism and weather.
• Accessory or custom equipment coverage. Saddlebags, custom paint and other add-ons that a standard policy may cap.

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License: the CY Endorsement

Michigan requires a motorcycle endorsement, called CY, on your driver's license to ride on public roads. The Secretary of State offers two routes: complete an approved Michigan Rider Education Program (MI-REP) course, or get a motorcycle temporary instruction permit, practice with an experienced rider for up to 180 days and pass a rider skills test at an approved testing business. Insurers generally ask for the endorsement before they will quote.

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Frequently Asked Questions

Is motorcycle insurance required in Michigan?

Yes. MCL 500.3103 requires every motorcycle owner or registrant to carry liability security at the section 3009(1) limits: $250,000 / $500,000 for bodily injury and $10,000 for property damage.

Does Michigan require PIP on a motorcycle policy?

No. Motorcycles are excluded from the no-fault act's definition of a motor vehicle, so a motorcycle policy carries no PIP. Insurers must instead offer optional first-party medical coverage in $5,000 increments.

Who pays my medical bills if a car hits me on my motorcycle?

The car's insurers come first. Under MCL 500.3114(5), PIP benefits are paid by the insurer of the car's owner or registrant, then the car operator's insurer, then your own car insurer if you have one, then the motorcycle owner's car insurer. Fault does not decide the order.

Can I sue a car driver for pain and suffering after a motorcycle crash?

Yes, but only if you meet the threshold in MCL 500.3135(1): death, serious impairment of body function or permanent serious disfigurement. The section has no exception for motorcyclists.

What is the penalty for riding uninsured in Michigan?

A misdemeanor under MCL 500.3102(2): a fine of $200 to $500, up to a year in jail, or both.

Does a moped need insurance in Michigan?

No. A moped (100cc or less, 30 mph or less, no gear shifting) is excluded from the no-fault act's definitions of both motorcycle and motor vehicle, so the motorcycle security requirement does not apply to it.

Are the old 20/40/10 limits still valid?

No. Motorcycle security follows MCL 500.3009(1), which has required $250,000 / $500,000 / $10,000 for policies issued or renewed after 1 July 2020.

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Key Takeaways

• Michigan requires motorcycle liability at the 3009(1) limits: $250,000 / $500,000 / $10,000
• No PIP on motorcycle policies: motorcycles are outside the no-fault definition of a motor vehicle
• Car involved? The car's insurers pay your PIP first, whoever was at fault
• No car involved? No PIP; buy the first-party medical coverage insurers must offer
• Pain-and-suffering suits against car drivers still need the serious-impairment threshold
• Riding uninsured is a misdemeanor: $200–$500 fine, up to a year in jail
• Mopeds (100cc or less, 30 mph or less) need no motorcycle security

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Sources

• MCL 500.3103 — motorcycle security; mandatory offer of first-party medical benefits
• MCL 500.3009 — liability limits and the lower-limit election
• MCL 500.3101 — definitions of motor vehicle, motorcycle and moped
• MCL 500.3114(5) — PIP priority for motorcyclists in accidents involving a motor vehicle
• MCL 500.3135 — tort threshold for noneconomic loss
• MCL 500.3102 — penalty for operating without security
• MCL 257.32b — definition of moped
• Michigan Secretary of State — motorcycle (CY) endorsement

Last verified: 2026-10

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Important Disclaimer

This guide provides general information about insurance requirements based on publicly available sources as of the "Last verified" date above. It is not legal, insurance, or financial advice. Requirements, penalties, and statutes can change; individual circumstances vary. Always confirm current rules with your state's Department of Insurance or DMV, and consult a licensed insurance professional for advice specific to your situation.