Are Out-of-State Residents Covered Under Michigan’s New Auto Insurance Law?

If you're an out-of-state resident who recently experienced a car accident while visiting Michigan, you may be wondering: are out-of-state residents covered under Michigan's auto insurance law? 

The short answer is no. Michigan revised its auto insurance law in 2020. Now, out-of-state residents are not covered in the event of a crash unless they own a vehicle that is registered and insured in the state of Michigan. Additionally, out-of-state residents are covered if they were in a vehicle that was insured in Michigan and were injured in an out-of-state crash. This is much different than the old law, which allowed out-of-state residents to be covered by the auto insurance policy on the vehicle they were occupying at the time of the accident.

We know how overwhelming it can be to navigate unfamiliar insurance laws, especially when you're far from home and potentially dealing with injuries or vehicle damage. Rest assured, you're not alone in this situation, and there are resources available to help you understand your rights and options.

Read on to learn more about Michigan's unique auto insurance system and how it applies to out-of-state residents. For personalized advice tailored to your specific circumstances, contact a local car accident attorney for a free consultation.

Michigan's No-Fault Auto Insurance System

To understand how Michigan's auto insurance law applies to out-of-state residents, you must understand the state's unique no-fault system. Michigan's auto insurance law is designed to provide prompt payment for medical expenses, wage loss benefits, replacement services, and damage to other people's property, regardless of who was at fault in the accident.

Here's a brief overview of how the system works:

• Personal Injury Protection (PIP): This covers medical expenses and lost wages for the policyholder, family members, and passengers who don't have their own PIP coverage.


• Property Protection Insurance (PPI): This pays for damage your car does to other people's property, such as buildings or fences. This protection can go as high as $1 million, depending on the carrier.


• Residual Liability Insurance: This protects you if you're sued or found legally responsible for injuries or damage to another person's property.

The key components of coverage under Michigan's no-fault system include:

• Medical expenses: Coverage for all reasonable and necessary medical expenses related to the accident.


• Work loss benefits: Compensation for lost wages due to injuries from the accident.


• Replacement services: Coverage for household services you can't perform due to your injuries.


• Survivor's loss benefits: Compensation for dependents if a person dies in an auto accident.

Factors Affecting Coverage

Several factors can influence the coverage available to out-of-state residents involved in Michigan auto accidents. Understanding these can help you better assess your situation:

• Length of stay in Michigan: As mentioned earlier, if you keep a vehicle in Michigan for more than 30 days in a calendar year, you may need to obtain Michigan no-fault insurance. This rule is designed to prevent long-term Michigan residents from avoiding the state's insurance requirements by registering their vehicles out of state.


• Purpose of visit: Why you're in Michigan can affect your coverage—whether it’s for work, vacation, education, or other reasons. For example, if you're in the state for work purposes, your employer's insurance policy may come into play. 


• Vehicle registration and insurance status: The state where you have your vehicle registered and insured can affect your coverage. If you have proper auto insurance in your home state, it should automatically conform to Michigan's no-fault law while you're in the state.


• Your role in the accident: Whether you were a driver, passenger, pedestrian, or bicyclist can influence your eligibility for certain benefits.


• The insurance status of other involved vehicles: If you were in a vehicle insured under a Michigan no-fault policy or hit by such a vehicle, you may qualify for Michigan no-fault benefits regardless of your residency.

Steps for Out-of-State Residents After an Accident

If you're an out-of-state resident involved in a car accident in Michigan, the actions you take immediately after the incident and in the following days can significantly impact your ability to receive appropriate compensation. Here's what you should do:

Immediate actions to take at the scene, if possible:

1. Move to a safe area if possible and check for injuries.


2. Report the accident to the police and request medical assistance if needed.


3. Get the contact and insurance details of all parties involved.


4. Take photos of vehicle damage, injuries, and the accident location.


5. If possible, get contact details of any witnesses.

Documentation needed:

1. Police report: Obtain a copy of the accident report filed by the responding officers.


2. Medical records: Keep all documentation related to your injuries and treatment.


3. Insurance policies: Have copies of your own insurance policy and the policies of other involved parties.


4. Receipts: Keep records of all accident-related expenses, including medical bills, vehicle repair costs, and rental car fees.


5. Employment records: If you've missed work due to the accident, gather documentation of lost wages.

What to do if the accident was some time ago:

If you're now at home recovering and the accident occurred some time ago, don't worry--you may still have options:

• Contact a Michigan attorney: They can advise you on the statute of limitations and help you understand your rights.


• Gather all available documentation: Collect any records you have related to the accident, your injuries, and subsequent treatment.


• Notify your insurance company: If you haven't already, inform your insurer about the accident.


• Keep a journal: Document your recovery process, including pain levels, limitations on daily activities, and any ongoing treatments.


• Don't communicate with the other party's insurance company without legal advice: They may try to minimize your claim.

Michigan's statute of limitations for personal injury claims is generally three years from the date of the accident. You must act promptly even if some time has passed to protect your rights to obtain compensation and begin the process.

Potential Challenges for Non-Residents

As an out-of-state resident involved in a Michigan car accident, you may face some unique challenges:

• Understanding Michigan's no-fault system: If you're from a state with a different insurance system, Michigan's no-fault law can be confusing.


• Dealing with insurance companies: You may need to coordinate between your home state insurer and Michigan insurers, which can be complex.


• Distance issues: Being far from the accident location can make it difficult to gather evidence, attend medical appointments, or meet with local attorneys.


• Unfamiliarity with local medical providers: You may not know which healthcare providers in Michigan are best suited to treat your injuries.


• Coverage limitations: Your out-of-state policy may have limitations on coverage for accidents occurring in Michigan.


• Coordinating benefits: If you're eligible for both Michigan no-fault benefits and benefits from your home state policy, coordinating these can be complicated.


• Understanding your rights: Michigan's laws regarding liability and compensation may differ significantly from those in your home state.

Importance of Legal Representation

Given these potential challenges, you must have a Michigan car accident attorney represent you. Here's how they can help:

• A Michigan personal injury attorney will have in-depth knowledge of the state's no-fault system and how it applies to out-of-state residents.


• They can handle communications with both your home state insurer and Michigan insurance companies, protecting your rights and shielding you from unfair insurance practices.


• They have the resources to collect the necessary evidence, even if you're no longer in Michigan.


• They can determine whether you're eligible for Michigan no-fault benefits, benefits from your home state policy, or compensation from at-fault parties.


• Experienced attorneys know how to negotiate effectively with insurance companies to ensure you receive fair compensation.


• If your case goes to trial, a Michigan attorney familiar with local court procedures is an invaluable resource and necessity.


• A local lawyer can recommend appropriate medical providers and help ensure you receive proper care.


• A good attorney will make sure you understand your rights under Michigan law and the options available to you.


• They'll file all necessary forms and documents correctly and on time, protecting your rights to pursue compensation.

Along with handling all the legal complexities, working with an attorney allows you to focus on your healing and family. You can gain peace of mind knowing an experienced legal professional is working hard for you and looking out for your best interests.

Contact an Experienced Michigan Car Accident Attorney Today

If you're an out-of-state resident who was in a car accident in Michigan, you can rely on the legal team at Goodman Acker P.C. to help you navigate Michigan's complex auto insurance laws and fight for the compensation you deserve.

We have a proven track record of securing fair compensation for our clients, and we’re committed to maximizing your financial recovery. Our experienced personal injury lawyers will thoroughly investigate your case, gather evidence, and negotiate with insurance companies on your behalf. We understand the complexities of Michigan's no-fault insurance laws and will work tirelessly to protect your rights. 

From minor collisions to severe crashes, we have the knowledge and resources to handle a wide range of car accident cases. You can rely on us to handle all aspects of your claim and keep you informed and updated along the way.

Don't wait to seek legal help. The sooner you contact Goodman Acker P.C., the sooner we can start building a strong case for you. We offer free consultations and work on a contingency fee basis. You don't pay anything upfront, and we only accept attorney fees if we secure compensation for you.