PIP Benefits for Non-Occupants – Order of Priority for Michigan No-Fault Claims
People injured in a Michigan car accident, truck accident and even motorcycle accidents are entitled to no-fault benefits. This includes so-called non-occupants, such as pedestrians and bicyclists, who are injured as a result of a motor vehicle accident. But which insurance company is responsible for paying these benefits?
The Michigan no-fault law provides an order of priority to determine which insurance carrier is obligated to pay benefits. This order of priority for non-occupants is described in MCL 500.3115, as laid out below:
First Priority – the no-fault insurer of the injured non-occupant
Second Priority – the no-fault insurer of the injured person’s spouse
Third Priority – the no-fault insurer of the injured person’s resident relative
Fourth Priority – the no-fault insurer of the owner or registrant of the motor vehicle involved in the accident
Fifth Priority – the no-fault insurer of the driver of the motor vehicle involved in the accident
Sixth Priority – the Michigan Assigned Claims Facility
In laymen’s terms, this means you always start with your own insurance company first. So if you are a pedestrian, and you are injured due to a car accident while crossing a street, your own insurance carrier is responsible for paying Michigan no-fault benefits. If you don’t have car insurance of your own, but your wife or husband does, then that carrier is responsible.
If no car insurance exists at that level, then if a resident relative (blood relative that lives with you) has car insurance, that carrier must pay the claim. After that, you look at the owner or registered owner of the car or truck that was involved in the accident. The insurer for that car or truck would be responsible for paying.
If the owner or registered owner did not have insurance, then you look at the driver of the car or truck that was involved in causing the accident. Sometimes the owner and driver are different people. If the driver had his or her own car insurance, then that carrier would be responsible for paying the claim.
If none of the above have car insurance, then the State of Michigan through the Michigan Assigned Claims Plan will assign an insurance company to pay your claim.
Below is MCL 500.3115, the statute governing the order of priority for non-occupants injured due to a motor vehicle accident.
Sec. 3115.
(1) Except as provided in subsection (1) of section 3114, a person suffering accidental bodily injury while not an occupant of a motor vehicle shall claim personal protection insurance benefits from insurers in the following order of priority:
(a) Insurers of owners or registrants of motor vehicles involved in the accident.
(b) Insurers of operators of motor vehicles involved in the accident.
(2) When 2 or more insurers are in the same order of priority to provide personal protection insurance benefits an insurer paying benefits due is entitled to partial recoupment from the other insurers in the same order of priority, together with a reasonable amount of partial recoupment of the expense of processing the claim, in order to accomplish equitable distribution of the loss among such insurers.
(3) A limit upon the amount of personal protection insurance benefits available because of accidental bodily injury to 1 person arising from 1 motor vehicle accident shall be determined without regard to the number of policies applicable to the accident.
