Personal Injury Cases Involving Out-Of-State Residents and the Change in the Michigan Insurance Law

Before the amendment of the Michigan No-Fault Law in 2019 (effective June 11, 2019), a non-resident involved in a Michigan motor vehicle accident would be entitled to Michigan no-fault insurance benefits if the out-of-state resident was occupying a Michigan no-fault vehicle or if the individual had an insurance policy with an insurer that filed a certificate of compliance agreeing to provide no-fault coverage to non-residents.

After the amendment of the Michigan No-Fault Insurance Law, non-residents are barred from no-fault insurance benefits even if they were injured in a Michigan vehicle unless the non-resident owns a motor vehicle that is registered and insured in Michigan.

The legal ramifications of the change in the Law has significant financial consequences for Michigan residents involved in motor vehicle accidents with non-residents in Michigan including the following:

• A non-resident can now sue for economic losses such as wage loss and medical expenses if you were deemed to be at-fault for the accident. Previously, if the economic losses were covered by no-fault insurance coverage, the Michigan resident would be immune from being responsible for these damages. As a result, this is a compelling reason to purchase higher bodily injury insurance to protect yourself from lawsuits.
• Non-residents will need to reimburse lienholders such as health insurers, Medicare and/or Medicaid for medical expenses arising from the accident-related injuries as a part of any personal injury settlement. As a result, there likely will be less compensation available to compensate the injured accident victim. In some cases, the injured party may have a very limited financial recovery where there are serious injuries and significant medical expenses paid by lienholders.
• Out-of-state students attending college at Michigan universities and colleges injured in Michigan could have a limited financial recovery in serious accidents in Michigan and they could face serious financial consequences if they were at-fault for such accidents. If the out-of-state motor vehicle involved in the accident were titled in their parents' names, the parents of the out-of-state residents could be legally responsible and sued for the damages caused by their student under the Michigan Owners Liability Act.

The potential financial issues are additional examples of the negative consequences of the amendment of the Michigan No-Fault Law of 2019. The minimal reduction in insurance costs related to the change in law hardly was in the best interests of Michigan residents. The need for higher bodily injury insurance has offset any potential savings for reduced personal injury protection coverage.

As expected, the only winners from the change in the Law are insurance companies. For a further explanation of the consequences of the 2019 Michigan No-Fault Law Amendment, the reader is encouraged to review "The No-Fault Reform Law".

Logeman, Iafrate, & Logeman, P.C. is an experienced personal injury law firm practicing in the State of Michigan for more than 40 years. Leaders in Michigan no-fault insurance law, we are dedicated to providing outstanding client service and skilled legal advocacy in every case. If you have questions or need help with an injury claim, call our Ann Arbor law firm and speak to an experienced personal injury lawyer today, free.

This article is provided for informational purposes only and does not constitute legal advice. Consult a qualified attorney at Logeman & Iafrate, P.C. for advice regarding your individual situation.