There is a lot of confusion about the rights of out-of-state drivers and nonresidents who are injured in a car accident in Michigan. Unlike most other states, Michigan is a no-fault state. This means there are specific rules for who can receive benefits and compensation after a crash and who cannot. This article helps explain the rules for out-of-state individuals injured in a Michigan car accident.
Background on the Michigan No-Fault Law
The Michigan no-fault law allows individuals injured in Michigan to obtain certain benefits, often referred to as no-fault benefits, even if the person caused the accident. These benefits can include the payment of lost wages, medical bills, hospital bills, prescriptions, and other things. For Michigan residents, these benefits are paid by a person’s own auto insurance, not the negligent driver’s insurance.
However, to be eligible for these benefits the owner of the vehicle operated must have valid car insurance at the time of the crash.
Under MCL 500.3101, the owner or registrant of a motor vehicle required to be registered in Michigan must maintain no-fault insurance. Failing to do results in the driver becoming ineligible for no-fault benefits. In addition, under MCL 500.3135(2)(c) the owner of an uninsured vehicle may not even get pain and suffering compensation for the negligence of the other driver.
This means for Michigan residents, even if a drunk driver runs a red light and causes significant injuries, you cannot sue the drunk driver for his negligence if you are driving your own uninsured vehicle.
The Basic Rules for Nonresidents Operating Vehicles in Michigan
If a person is visiting Michigan and rents a car or borrows a friend’s or family member’s vehicle during their stay, then they are protected by the auto insurance of the vehicle they operate. But this changes if the nonresident is driving in Michigan with their own vehicle for more than 30 days.
Under MCL 500.3102(1), a nonresident owner or registrant of a motor vehicle or motorcycle not registered in Michigan cannot operate the motor vehicle or motorcycle for an aggregate of more than 30 days in any calendar year unless he or she maintains Michigan no-fault automobile coverage. If the person fails to do so, they are not entitled to Michigan no-fault benefits.
But this rule did not mean much because as explained below, out-of-state drivers are almost always not eligible to claim Michigan no-fault benefits through a Michigan auto insurance company. However, this rule was used by insurance companies to prevent the payment of pain and suffering compensation to out-of-state drivers injured in Michigan by a Michigan driver.
Recently, this tactic was slapped down by the Michigan Court of Appeals.
Can a Non-Resident Sue for Pain and Suffering in Michigan?
Yes. If a Michigan driver was the cause of the crash, then an out-of-state driver is entitled to compensation for pain and suffering so long as the nonresident has insurance on their vehicle. This point was recently illustrated in Goings v. Giacomantonio-Snow, docket no. 366074, (published on 7/18/2024). The Michigan Court of Appeals held that a resident of Ohio who spent a considerable amount of time in Michigan could file a lawsuit for negligence against the at-fault driver who caused his injuries.
In this case, the plaintiff lived in Ohio but worked in Michigan when he was rear-ended by an SUV owned by a Michigan resident. The plaintiff sued the driver for his negligence and for causing his injuries. The trial court in Wayne County dismissed his case, holding that because the plaintiff operated his vehicle in Michigan for at least 30 days in a calendar year, he was required to have Michigan no-fault insurance. And because he only had Ohio insurance and did not purchase insurance as required by MCL 500.3102(2), he was precluded from suing the at-fault driver.
The Michigan Court of Appeals reversed. The Court held that MCL 500.3135(2)(c) only bars recovery of pain and suffering damages if the injured plaintiff failed to maintain no-fault insurance under a portion of that law that pertains to motor vehicles required to be registered in Michigan. And because the plaintiff was an Ohio resident, and therefore was not required to purchase Michigan automobile insurance in the first place, the law clearly allows him to move forward with a lawsuit for pain and suffering and other non-economic damages against the at-fault driver.
The Nonresident Driver Must Prove a Threshold Injury
However, just because a non-resident is injured in a Michigan car accident does not mean they automatically get compensation for pain and suffering. Under Michigan law, a nonresident, just like Michigan residents, must prove he or she sustained a threshold injury due to the car crash. Only if a threshold injury occurs is an injured person eligible for pain and suffering compensation.
There are three types of threshold injuries: (1) death, (2) permanent serious disfigurement, and (3) serious impairment of body function.
Almost all cases involve this last threshold, serious impairment of body function. The actual definition of a serious impairment of body function is found under MCL 300.3135(5). The law says an injured person must show (1) an objective injury found on MRI or other imaging tests, or through observable symptoms like muscle spasm, (2) the impairment is to an important body function, (3) the impairments or injuries generally affect their ability to lead a normal life.
Contrary to what many people think, the injured person does not have to be permanently injured to have a threshold injury. In fact, the amount of time a person has impairments from the car accident is relevant but there is no time requirement. The severity of the injury does not necessarily matter either.
It is important to contact a Michigan out-of-state car accident lawyer to help you find out whether an injured person has a threshold injury and the compensation they can receive.
Can A Non-Resident Get Michigan No-Fault PIP Benefits?
Yes, but not in the same way Michigan residents can. Under MCL 500.3113(c), a nonresident of Michigan is prohibited from receiving Michigan no-fault benefits unless the person owns a car or truck registered in Michigan. In other words, if you are visiting Michigan and get hit by a negligent driver, you cannot set up a claim for medical bills and lost wages through the normal Michigan no-fault system.
However, you can still get your medical bills, lost wages, and other economic losses paid for by the at-fault driver and vehicle owner. The negligent driver’s insurance company is responsible for paying the same type of no-fault benefits, in addition to the pain and suffering.
Again, to be eligible for these economic benefits, the nonresident must prove he or she sustained a threshold injury.
The Michigan Car Accident Law Firm for Out-of-State Drivers
The Lee Steinberg Law Firm has been assisting out-of-state drivers for decades. We have represented clients from all over the United States and Canada for car accidents occurring in Michigan. Because the Michigan No-Fault Law is so complex, it is essential to hire an experienced Michigan car accident law firm to ensure you are protected. A local lawyer in your area will probably not know how to properly handle a Michigan car accident case.
If you have any questions, we are standing by ready to help. Please call us at 1-800-LEE-FREE (1-800-533-3733) or fill out a free case evaluation here. The consultation is free and we don’t charge any attorney fees or costs until we win your case.
