Does Michigan No-Fault Insurance Cover Non-Resident Drivers Involved in a Car Accident?
Published:
If you are an out-of-state resident driving in Michigan, your auto policy may not give you the same protection a Michigan No-Fault policy would. Non-residents who operate a vehicle here more than 30 days in a calendar year can be treated as uninsured unless the vehicle has Michigan No-Fault coverage.
Here is an overview of those rules and why an experienced Michigan car accident attorney can help after a crash.
Do You Have a Case?WHAT ARE THE MICHIGAN INSURANCE LAWS FOR OUT-OF-STATE DRIVERS?
Non-residents who have been driving in Michigan for fewer than 30 days in a calendar year typically rely on the policy issued in their home state. Anyone who operates a vehicle here more than 30 days in a year generally must maintain a Michigan No-Fault policy on that vehicle.
Examples of short visits that usually stay on the home-state policy:
- An out-of-state resident here for fewer than 30 days, for any reason
- A vacation or business trip of a few weeks, unless later trips in the same year push the total past 30 days
- A salesperson on short visits or day trips totaling fewer than 30 days
WHO IS CONSIDERED A NON-RESIDENT UNDER MICHIGAN NO-FAULT LAW?
These out-of-state drivers often need Michigan No-Fault if they are here more than 30 days a year, or they may have trouble collecting PIP after a crash:
- College students whose primary home is another state or country
- Snowbirds with out-of-state auto insurance
- Commuters from Ohio, Indiana, Wisconsin or Ontario
- Visitors whose days in Michigan add up to more than 30 in a calendar year
WHAT ARE THE PENALTIES FOR UNINSURED DRIVERS IN MICHIGAN?
Driving here more than 30 days a year without Michigan No-Fault can bring the same uninsured-motorist penalties that apply to residents, including a misdemeanor with:
- A fine of up to $500
- Up to one year in jail
- Possible license suspension
After a crash, uninsured drivers may also:
- Be sued personally for others’ injuries and property damage
- Face limits on their own third-party recovery, even if they were not at fault
- Be barred from Michigan’s mini-tort vehicle-damage claim
WHO COVERS MY LOSSES IN A MICHIGAN ACCIDENT WITH AN OUT-OF-STATE DRIVER?
If you and the vehicle are on a Michigan No-Fault policy, you generally collect the PIP benefits in that policy: medical, wage loss, attendant care and replacement services, up to the PIP medical limit you chose. That is true whether the other driver is from Michigan or another state.
WHO IS LIABLE FOR A MICHIGAN ACCIDENT WHERE AN OUT-OF-STATE DRIVER IS INJURED?
Before the 2019 No-Fault reforms, some out-of-state drivers could collect Michigan PIP through insurers certified to write coverage here.
Since those reforms, out-of-state residents injured in Michigan generally cannot collect Michigan PIP unless they own a vehicle registered and insured in Michigan. They usually look to their own auto or health coverage instead.
CAN I BE SUED BY AN OUT-OF-STATE DRIVER WHO IS INJURED IN A MICHIGAN CRASH?
Yes, in some cases. Because many non-residents no longer get Michigan PIP, they may sue an at-fault Michigan driver for medical bills and other damages. Higher residual liability limits help protect Michigan drivers. Unlimited PIP on your own policy covers your medical bills; it does not replace liability coverage for claims against you.
DOES MICHIGAN NO-FAULT INSURANCE COVER OUT-OF-STATE CAR ACCIDENTS?
In most cases, yes, for PIP. Under MCL 500.3111, PIP can apply to an accident in the United States, its territories or Canada if the injured person is:
- The named insured on a Michigan No-Fault policy
- The spouse of a named insured
- A relative living in the same household
- An occupant of a vehicle involved in the accident, if they reside in Michigan or the owner or registrant has Michigan No-Fault
An out-of-state resident hurt while occupying a Michigan-insured vehicle may be entitled to PIP under that vehicle’s policy.
Property Protection Insurance (PPI) on a Michigan policy does not cover property damage from an out-of-state crash.
CAN DRIVERS HAVE AUTO INSURANCE POLICIES FROM MORE THAN ONE STATE?
Yes. If you will drive in Michigan more than 30 days a year, you can buy Michigan No-Fault in addition to your home-state policy. People who split time among states sometimes carry more than one policy to meet each state’s rules.
CALL OUR EXPERIENCED MICHIGAN CAR ACCIDENT LAWYERS TODAY
If you or a loved one is injured in a crash, we can help. Our car accident lawyers have the skills, knowledge and resources to pursue the compensation you and your family deserve.
Auto accident law is complicated, but finding the right Michigan car accident attorney is simple.
Don’t let the legal clock run out. Fill out the brief form below or contact us for a free, no-obligation consultation.
Do You Have a Case?
