As a Michigan resident, you might think your auto insurance coverage only applies within state lines. However, if you find yourself in an accident while traveling out of state, it’s crucial to understand your rights and responsibilities. This comprehensive guide will walk you through everything you need to know about out-of-state accidents for Michigan drivers.
Good news for Michigan drivers! Your No-Fault benefits extend beyond state borders. Here’s what you need to know:• No-Fault benefits apply to accidents occurring in the United States, its territories and possessions, and Canada.
IMPORTANT: Make sure to inform your insurance company promptly if you’re in an out-of-state accident .
The Michigan Court of Appeals case Steanhouse v. Michigan Auto. Ins. Placement Facility (2024) reaffirmed that Michigan residents are not entitled to Personal Protection Insurance (PIP) benefits through the Michigan Assigned Claims Plan (MACP) for injuries arising from out-of-state car accidents. This ruling prioritizes the more specific statute (MCL 500.3172) over the more general one (MCL 500.3114).
If you’re injured in an out-of-state accident caused by another driver, you may have the right to sue for compensation. Keep in mind:
Our law firm can help you with out-of-state accidents. We have a network of proven winning trial lawyers in each state. Even when our firm and another firm are working together, there is no additional fee. We all work together under the contingency fee agreement meaning there is no fee until we obtain compensation for you.
Dealing with vehicle damage can be tricky when you’re far from home. Here’s what Michigan residents should know:• You may need to sue the at-fault driver to cover repair costs.
TIP: Consider adding collision coverage to your policy if you frequently travel out of state.
Michigan No-Fault insurance typically does not apply to accidents that occur in Mexico or Europe for Michigan residents. Here are the key points:
ARE THERE GEOGRAPHICAL LIMITATIONS TO COLLECTING MICHIGAN NO-FAULT BENEFITS?
EXCEPTIONS AND CONSIDERATIONS
Before traveling outside the United States, Canada, or U.S. territories:
Remember, while your Michigan No-Fault insurance provides extensive coverage within its designated geographical area, it’s crucial to plan ahead and secure appropriate coverage for international travel to ensure you’re protected wherever your journeys may take you.
Even careful drivers can find themselves at fault in an accident. If you cause a crash out of state:
FREQUENTLY ASKED QUESTIONS
Q: Will my Michigan No-Fault benefits cover me if I’m in an accident while visiting Florida?
A: Yes, your Michigan No-Fault benefits apply to accidents occurring anywhere in the United States, its territories and possessions, and Canada.
Q: Will my Michigan No-Fault benefits cover me if I’m in an accident while visiting MEXICO?
A: No, your Michigan No-Fault benefits typically do not apply to accidents occurring Mexico. Some policies cover accidents that are within a certain distance from the U.S. border.
Q: Can I sue an out-of-state driver who caused my accident in their home state?
A: Yes, you can bring a lawsuit against an at-fault driver in the state where the accident occurred. The laws of that state will govern your case.
Q: What if I don’t have a Michigan No-Fault policy but I’m injured while riding in a friend’s Michigan-insured car out of state?
A: You may still be eligible for No-Fault benefits if you were occupying a vehicle insured under a Michigan No-Fault policy at the time of the accident.
Q: How does Michigan’s auto insurance reform affect out-of-state accidents?
A: The 2020 reforms primarily affect in-state accidents. For out-of-state accidents, Michigan residents still maintain their No-Fault coverage.
DID YOU KNOW?
COVERAGE LIMITS
NO-FAULT DISQUALIFICATIONS SPECIFIC TO MICHIGAN MOTORCYCLISTS
Remember, while these rules apply to Michigan motorcyclists, the specific details of coverage can vary based on individual policies and circumstances. It’s always advisable for motorcyclists to review their insurance policies and consult a legal professionals for personalized advice.
Understanding the legal framework can help you navigate out-of-state accident situations. Here are some key Michigan statutes and case law to be aware of:
MCL 500.3111: PERSONAL PROTECTION INSURANCE BENEFITS FOR OUT-OF-STATE ACCIDENTS
“Personal protection insurance benefits are payable for accidental bodily injury suffered in an accident occurring out of this state, if the accident occurs within the United States, its territories and possessions, or Canada, and the person whose injury is the basis of the claim was at the time of the accident a named insured under a personal protection insurance policy, the spouse of a named insured, a relative of either domiciled in the same household, or an occupant of a vehicle involved in the accident, if the occupant was a resident of this state or if the owner or registrant of the vehicle was insured under a personal protection insurance policy or provided security approved by the secretary of state under section 3101(5).”
KEY POINTS:
MCL 500.3113: PERSONS NOT ENTITLED TO PERSONAL PROTECTION INSURANCE BENEFITS
“A person is not entitled to be paid personal protection insurance benefits for accidental bodily injury if at the time of the accident any of the following circumstances existed: […] (c) The person was not a resident of this state, unless the person owned a motor vehicle that was registered and insured in this state.
“IMPORTANT: Non-Michigan residents may not be eligible for benefits unless they own a Michigan-registered and insured vehicle.
MCL 500.3101: SECURITY FOR PAYMENT OF BENEFITS REQUIRED
“The owner or registrant of a motor vehicle required to be registered in this state shall maintain security for payment of benefits under personal protection insurance and property protection insurance as required under this chapter, and residual liability insurance.”
TAKEAWAY: Michigan residents must maintain proper insurance coverage, which extends to out-of-state accidents.
MCL 500.3009: AUTOMOBILE LIABILITY POLICY LIMITS
As of July 1, 2020, the limits are:”(a) […] a limit, exclusive of interest and costs, of not less than $250,000.00 because of bodily injury to or death of 1 person in any 1 accident.(b) […] a limit of not less than $500,000.00 because of bodily injury to or death of 2 or more persons in any 1 accident.(c) A limit of not less than $10,000.00 because of injury to or destruction of property of others in any accident.”
REMEMBER: These limits apply to your liability coverage, which protects you if you’re at fault in an out-of-state accident.
MCL 500.3131: RESIDUAL LIABILITY INSURANCE COVERAGE
“(1) Residual liability insurance shall cover bodily injury and property damage which occurs within the United States, its territories and possessions, or in Canada. This insurance shall afford coverage equivalent to that required as evidence of automobile liability insurance under the financial responsibility laws of the place in which the injury or damage occurs.”
IMPORTANT: Your Michigan liability coverage adapts to meet the minimum requirements of the state where an accident occurs.
This landmark 1990 Michigan Supreme Court case established that Michigan’s No-Fault Act applies to out-of-state accidents involving Michigan residents. It confirmed that Michigan No-Fault benefits extend to accidents occurring outside the state and reinforced the territorial application of personal protection insurance benefits as outlined in MCL 500.3111.
This 2002 Michigan Court of Appeals case addressed the issue of out-of-state residents receiving Michigan No-Fault benefits. Prior to the 2019 No-Fault reform, out-of-state residents could receive Michigan No-Fault benefits under certain circumstances. The case highlighted the importance of insurance policies filing certificates of compliance with Michigan’s insurance commissioner.
This 2020 Michigan Court of Appeals case dealt with the application of Michigan’s No-Fault law to out-of-state accidents after the 2019 reforms. It confirmed that Michigan residents still maintain No-Fault coverage for out-of-state accidents post-reform and emphasized the importance of understanding policy limits and coverage options under the new law.
BEFORE YOU GO:
IF YOU’RE IN AN ACCIDENT:
As a Michigan driver, understanding your rights and responsibilities in out-of-state accidents is crucial. While your Michigan No-Fault benefits offer significant protection, each situation is unique. If you find yourself in an out-of-state accident, don’t hesitate to seek legal advice to ensure you’re fully protected. The evolving nature of Michigan’s No-Fault law, especially concerning out-of-state accidents and non-resident drivers, is evident in recent case law. The 2019 reforms have significantly altered the legal landscape, making it crucial for both Michigan residents and out-of-state drivers to understand their rights and responsibilities.
Key takeaways:
Remember, your Michigan auto insurance is designed to protect you both at home and on the road, wherever your travels may take you. Stay safe, stay informed, and enjoy your journeys with peace of mind.
With over 30 years of experience and a record-breaking $27 million jury verdict, Jason Waechter and his team of dedicated attorneys are committed to fighting for justice and maximum compensation for motor vehicle and motorcycle accident victims. As a Super Lawyer®, member of the Million Dollar Advocates Forum, and rated Top 100 Trial Lawyer, Mr. Waechter brings unparalleled expertise to every case. His extensive trial experience and recognition as a leading educator in vehicle and motorcycle injury litigation set him apart in the field. The team has four attorneys and numerous support staff. Don’t settle for less than you deserve. Contact our firm today for a free consultation and let us put our award-winning skills to work for you. Your path to justice and significant compensation starts here.
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