Michigan’s automobile accident laws are very different from those of just about every other state in America. Michigan is one of the last true no-fault states. This means that almost everyone is eligible for no-fault benefits for their injuries following a crash, even if they caused the crash. However, in return, it is more challenging to obtain compensation for pain and suffering compared to states that follow more traditional tort-only approaches.

The rules for out-of-state residents injured in Michigan are very different than those for Michigan residents. This makes for a very confusing set of laws. This article aims to explain the Michigan no-fault law and its application to Michigan non-residents.

What is the Michigan No-Fault Law?

The Michigan no-fault law is a series of laws enacted in 1973 that governs who and how car accident victims are compensated for their injuries following a crash. The basic rule allows a person to obtain economic damages from an auto insurance carrier, even if they were at fault for causing the crash. This also includes passengers, pedestrians, bicyclists, and any other person “involved in a motor vehicle accident.”

However, to obtain pain and suffering compensation (non-economic damages), the injured victim must have sustained a threshold injury. There are three (3) threshold injuries: (1) death, (2) permanent, serious disfigurement, and (3) serious impairment of body function. Almost all cases involve the last category.

There is one major exception. If you were operating your own uninsured car at the time of the crash, you may not collect any no-fault benefits. In fact, you may not even obtain pain and suffering against the at-fault driver!

What are Michigan No-Fault Benefits?

The no-fault benefits available to accident victims are generous. In general, they are the following:

Payment of Medical Expenses: Reimbursement for medical expenses, such as hospital bills, doctor’s bills, out-of-pocket costs, rehabilitation, physical therapy, surgery, reimbursement of prescription drugs, and other costs subject to the applicable personal injury protection (PIP) coverage limit, or medical limit.
Lost Wages: Payment of 85% of gross wages for up to three (3) years following the crash
Replacement Services: Payment to friends, family members or others who perform household chores on behalf of the injured person for up to three (3) years following the crash.
Attendant Care: Payment to friends, family members, or professional companies and agencies for more personal care following a crash. Examples of attendant care include nursing care activities such as changing bandages, bathroom assistance, hygiene, supervision, driving, and help with dressing.
Home and Vehicle Modifications: In catastrophic cases, a home ramp or other modifications may be needed for the home or family care. The auto insurance carrier is responsible for covering this expense.

Can Out-of-State Residents Get No-Fault Benefits?

Generally, a person who is not a Michigan resident is not eligible to apply for and receive no-fault benefits. MCL 500.3113(c). There is an exception to this rule. If the non-resident owned a car or truck that was registered in Michigan at the time of the crash, they may be eligible to make a claim for first-party benefits.

Unfortunately, this eliminates almost all non-Michigan residents from collecting no-fault benefits for crashes that occur in the state of Michigan. This is due to a significant change in the law. Before 2019, most non-residents were still eligible to obtain benefits. This is no longer the case.

Can Out-of-State Residents Receive Pain and Suffering Compensation?

Yes, a person visiting Michigan who is injured in a car crash can still get compensation for their pain and suffering, emotional distress, anxiety, depression, and other mental ailments caused by a negligent driver. However, the individual must prove they have a “threshold injury” or a serious impairment of body function. This standard applies to Michigan residents as well.

What are the Elements Required to Prove a Threshold Injury

To establish that a person has suffered a serious impairment of body function, the following criteria must be met :</a>

1. Objectively manifested impairment: The impairment must be observable or perceivable by others—not just the person experiencing it.

2. Impairment of an important body function: The affected body function must be one that holds significant value or importance to the injured individual.

3. General ability to lead a normal life must be affected: The impairment must influence the victim’s ability to live in their typical manner, even if not completely preventing them from doing so.

This test is not dependent on the duration of the impairment. In other words, there’s no minimum duration – even a short-term but meaningful disruption could qualify. Each case is assessed based on its unique facts and circumstances, including a comparison of the individual’s lifestyle before and after the incident.

If I Can’t Make a No-Fault Claim, How Do I Get Reimbursed for Economic Losses?

Under Michigan law, a non-resident cannot make a claim for first-party no-fault benefits unless they happen to own a vehicle registered and insured in Michigan. So, how does a person from Florida or Ohio get reimbursed for medical bills and lost wages after an accident? By filing a claim or lawsuit against the at-fault driver and owner.

However, unlike Michigan residents, non-residents must again prove they sustained a threshold injury to obtain economic losses. MCL 500.3135(3)(d). The law says:

(3) Notwithstanding any other provision of law, tort liability arising from the ownership, maintenance, or use within this state of a motor vehicle with respect to which the security required by section 3101(1) was in effect is abolished except as to:

(d) Damages for economic loss by a nonresident. However, to recover under this subdivision, the nonresident must have suffered death, serious impairment of body function, or permanent serious disfigurement.

Can I Sue the Car Owner for the Driver’s Negligence in Michigan?

Yes, Michigan has an owner’s liability statute. MCL 257.401. This law states that as long as the owner gave the negligent driver permission to use their vehicle, the owner is liable for any injuries caused by the negligent driver. Therefore, a person can file a lawsuit against both the negligent driver and the owner of the car or truck.

Is there a Limit on Non-Economic Damages in Michigan?

No, for auto accidents, there is no limit or cap on non-economic damages for car accident victims. Of course, the amount of money a person can receive may be limited by the insurance coverage maintained by the at-fault driver and vehicle owner.

What is the Deadline for Filing a Lawsuit in Michigan for Car Accident Injuries?

In Michigan, there is a three (3) year statute of limitations for filing a lawsuit against the proper defendants. This means the injured parties have 3 years from the date of the crash to file a lawsuit in court.

There are certain exceptions. For example, minors typically have until their 19<sup>th</sup> birthday to file a lawsuit. So if a person is 13 years old at the time of the crash, they have more than 3 years to file a lawsuit. There are also exceptions for individuals who are legally incapacitated.

The exceptions to the statute of limitations are narrow and it is advisable to contact an experienced and reputable Michigan out-of-state car accident lawyer to get more information.

Contact the Leading Car Accident Injury Lawyers in Michigan

The Lee Steinberg Law Firm has proudly represented out-of-state residents injured in Michigan for over 50 years. We know the law, we know the courts, and we understand what it takes to win your case. With hundreds of millions of dollars collected in settlements and verdicts, we take on big insurance and the large corporations every single day.< Contact our office for a free case review. And we never charge a thing until we win your case. You can also contact us directly at 1-886-511-0594. We look forward to answering your questions.

Out-of-State Residents and Michigan Car Accidents – What are the Rules?