How Does Michigan No Fault Insurance Work if My Accident Was in Another State?

No-fault insurance is required to operate a motor vehicle in Michigan, so most people carry a policy, but what happens if you are visiting another state and get in a car accident there? Will your policy still cover the accident?

All states have to have some kind of automobile insurance system. Most states follow a tort liability system of law, meaning that disputes get settled through the court process. This operates on a negligence theory in which the court process determines if a plaintiff should be compensated based on fault and how much they should be compensated. Twelve states follow the no-fault theory, with three out of those twelve offering a choice between a no-fault policy or an insurance policy that would operate under the tort theory. The no-fault only states are Michigan, Florida, New York, Hawaii, Kansas, Massachusetts, Minnesota, North Dakota, and Utah. The three "choice" states are Pennsylvania, New Jersey, and Kentucky.

What Does Michigan No-Fault Insurance Cover Out of State?

There's good news on this front. If you are in an accident out of state, then you may still be covered under your no-fault insurance policy. Michigan statutory law says that your personal injury protection (PIP) benefits still cover accidental bodily injury in any of the states as well as U.S. territories and Canada.

So who is exactly is covered? You as the policyholder are covered if you are in an accident, but so is your spouse, relative in the same household, and any occupant who is in the car at the time of the accident when the car is registered with a no-fault policy. These are the people who must be the basis of the injury claim.

Injuries and Damages to the Other Party in a Tort State

Unfortunately, if you are in a tort liability state and the other party, who is a resident of that state, is injured, then you would be vulnerable to being sued in tort under that state's court system. Since you decided to drive into the state, you availed yourself of its laws as well. Therefore, someone who is injured, no matter what degree of seriousness the injuries, can sue for recovery in court. This can create problems for you since you don't live there.

Another problem comes up when a Michigan resident is visiting in another state and gets in a car accident but is not carrying a no-fault policy. This can happen if you simply don't drive a car because everything you need is accessible via other modes of transportation, such as in the heart of a city. This can also happen if someone simply neglects to obtain a no-fault policy and drives illegally. Whatever the reason, if you are in an accident out of state without no-fault coverage, then you will no longer get the benefits of coverage for your injuries. You could possibly, however, avail yourself of the tort system in the state you visited.

Sachs Waldman Detroit Personal Injury Attorneys at Your Service

At Sachs Waldman, our car accident attorneys can assess your case and help you obtain the compensation you deserve. Speak with a Detroit personal injury attorney today and contact our Detroit law firm at (313) 965-3464 or fill out our online form. Consultations are free and confidential.