No-Fault Explained: Out-of-State Accidents

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The Michigan No-Fault Act doesn’t stop at the state borders. Michigan residents bring their high-quality personal injury protection with them on vacation, while on out-of-state business, and even on trips to Canada, ready to cover all kinds of out-of-state accidents.

In MCL 500.3111, Michigan legislators chose to expand protections the law provides beyond the borders of our pleasant peninsula. Motorists’ no-fault benefits travel with them across the country, into its territories, and into Canada. But there are limits.

Who is Covered in Out-of-State Accidents?


The first question is whether the person injured is covered for injuries suffered out-of-state. To receive benefits, the injured person must be a named insured on a Michigan no-fault insurance policy or have a relative in his or her Michigan residence with a policy. The residence requirement can pose problems for college students and others who spend significant parts of the year out-of-state.

Out-of-state residents who are injured in Michigan may also be entitled to benefits, if they are operating a vehicle covered by a Michigan policy. If non-residents have auto insurance in their home state, they may still be entitled to coverage if their insurance provider also sells policies in Michigan.

Covered Vehicles in Out-of-State Accidents


Michigan residents may be covered for driving vacations, but what about when their car doesn’t come with them. Michigan law does not require your no-fault policy to cover injuries suffered in rental cars, taxis, or other out-of-state vehicles. If the vehicle is uninsured, the injured person may be unable to claim PIP benefits after the accident.

Accidents in Non-No-Fault States


Not every state has no-fault auto insurance. In some states, injured motorists must sue the at-fault driver for negligence. If the Michigan resident is at fault, the law of the state where the accident happened applies. That can deprive Michigan residents of their no-fault liability protections and leave them vulnerable to higher cost liability claims.

Out-of-state accidents create headaches for insurance providers and injured motorists alike. The Michigan car accident lawyers at Christensen Law know when Michigan law applies and how to get you the benefits you need after an out-of-state accident. If you have been in a car crash out of state, contact Christensen Law today for a free consultation.