Michigan Car Accident Attorneys
Michigan No-Fault – Disqualification of PIP Benefits – MCL 500.3113
Under the Michigan no-fault law, victims of Michigan car accidents or Michigan truck accidents are entitled to various benefits. These benefits include lost wages, payment of all medical expenses related to the accident, payment of prescriptions drugs, payment of household chores and more personal attendant care. Individual entitled to these benefits don’t have to have car insurance of their own. So long as a motor vehicle was involved in the accident, benefits are applicable. This includes pedestrians and people riding bicycles.
However, there are some exceptions to this general rule. Under the Michigan no-fault law, more specifically MCL 500.3113, certain individuals are not entitled to Michigan no-fault benefits. Instead, they are disqualified from getting benefits. These individuals include the following:
The owner or registered owner of a motor vehicle or motorcycle who was involved in the accident but did not carry car or motorcycle insurance.
This is the big one. If you are driving around your own car, and its uninsured and you are involved in a car accident, you cannot collect no-fault benefits. In fact, you cannot even go after the driver who caused the accident for pain and suffering compensation.
A person who was driving or using a motor vehicle or motorcycle that was taken unlawfully (stolen) and the person knew or should have known that the car or motorcycle was stolen.
If you stole or a vehicle, or was a passenger in a stolen vehicle and knew or should have known the vehicle was stolen, you cannot obtain Michigan no-fault benefits if you are injured in an accident.
The person does not live in Michigan, was inside a motor vehicle or motorcycle not registered in Michigan and that motor vehicle or motorcycle was not insured by a car insurance company registered to write no-fault policies with the state of Michigan.
These situations involve people injured in an accident while in Michigan, but live elsewhere and the car insurance they have does not write policies in Michigan. However, be careful. Even if the injured person lives in California and the car is registered there, the individual can obtain Michigan no-fault benefits if they are insured for example with Progressive or State Farm Insurance. Those carriers write Michigan policies and therefore would almost always be on the hook to pay no-fault benefits. Keep this in mind for out-of-state family members.
The person was operating a motor vehicle or motorcycle and he or she is a named excluded driver on the policy
This exclusion is brand new and became the law last year. In the past, excluded drivers could still get no-fault benefits. This is no longer the case. These rules are important to remember. Certain persons are not entitled to PIP no-fault benefits, even though they were injured in a motor vehicle accident.
Below is MCL 500.3113:
Sec. 3113. A person is not entitled to be paid personal protection insurance benefits for accidental bodily injury if at the time of the accident any of the following circumstances existed:
(a) The person was willingly operating or willingly using a motor vehicle or motorcycle that was taken unlawfully, and the person knew or should have known that the motor vehicle or motorcycle was taken unlawfully.
(b) The person was the owner or registrant of a motor vehicle or motorcycle involved in the accident with respect to which the security required by section 3101 or 3103 was not in effect.
(c) The person was not a resident of this state, was an occupant of a motor vehicle or motorcycle not registered in this state, and the motor vehicle or motorcycle was not insured by an insurer that has filed a certification in compliance with section 3163.
(d) The person was operating a motor vehicle or motorcycle as to which he or she was named as an excluded operator as allowed under section 3009(2).