I’m a Snowbird and spend my winters in the south, what do I need to know about how this impacts my auto insurance coverage?

The mere fact of spending winters down south does not affect your Michigan auto no-fault coverage. That is, as long as you maintain your car here (registered and insured in Michigan), you will not lose your coverage simply by spending time out of state.

I no longer own a car and rely on my kids or public transportation, what happens if I am injured while riding in someone else’s car?

Under the new law, an uninsured Michigan resident will claim no-fault benefits through the Michigan Assigned Claims Plan (MACP), which caps benefits at $250,000. This is so whether you are a passenger, bicyclist, or pedestrian, if you are not within your own uninsured vehicle (driving an uninsured vehicle disqualifies a person from receiving PIP benefits). A possible exception is where the injured person is a passenger in a vehicle operated in the business of transporting passengers. This is a confusing exception but suffice it to say that if the vehicle qualifies under this exception, the injured passenger will claim from the insurer of that vehicle, up to the limits chosen by the operator of the vehicle.

My caregiver or home care agency person drives me to my doctor appointments and to grocery shop, because I no longer own a car or drive, what happens if I am injured in their car?

An uninsured passenger, if they are a Michigan resident, will claim no-fault benefits through the Michigan Assigned Claims Plan (MACP), which caps benefits at $250,000. This is so if you are a passenger, as long as you are not within your own uninsured vehicle (driving an uninsured vehicle disqualifies a person from receiving PIP benefits). A possible exception is where the injured person is a passenger in a vehicle operated in the business of transporting passengers. This is a confusing exception but suffice it to say that if the vehicle qualifies under this exception, the injured passenger will claim from the insurer of that vehicle, up to the limits chosen by the operator of the vehicle.

My kids live out of state and use my car when they visit, are they covered under my policy?

No, unless your child is determined to still be "domiciled" with you, their parent, they cannot claim benefits under your policy.  A different circumstance is military service members or out-of-state college students who never changed domiciles. But ordinarily under MCL 500.3163, out-of-state visitors who are injured in Michigan will have no PIP benefits available to them unless the out-of-state visitor is an owner of a motor vehicle registered and insured in Michigan. 

I gave my grandchild my old car and still pay the insurance, is that okay?

If you are no longer the owner of the car, you may continue to pay the insurance but the insurance company may later try to rescind your policy claiming that you were not truthful about the ownership of the vehicle. So be cautious! A better approach may be for you to add the grandchild as a named insured onto your policy or encourage the grandchild to secure his/her own insurance and offer to help with payment of his/her policy.    

I often provide childcare for my grandchildren, are they covered while riding in my car?

If you happen to reside with your grandchildren, then yes, they are covered for PIP benefits under your policy while riding in your car up to the limits of PIP benefit coverage you purchased. If, however, you do not live together, your grandchildren must look to the insurance policy of a relative with whom they live, and their coverage will be limited to the amount of PIP coverage purchased by that relative. If there is no PIP coverage in their household whatsoever, the child must apply for coverage through the Michigan Assigned Claims Plan and the maximum PIP coverage available will be $250,000. 

I don’t drive and rely on taxis and ridesharing services – what happens if I am injured while riding?

The rights of those who rely on taxis and ridesharing services have changed dramatically under Michigan’s auto insurance overhaul. For those passengers who do not have auto insurance of their own (or through a relative with whom they are domiciled), the passenger will generally look to the insurer of the taxi/rideshare vehicle for no-fault benefits, which include medical expenses. Yet that no-fault insurance may provide for less than lifetime coverage. Equally important, injured passengers likely have liability claims against the driver(s) responsible for the crash. The amount of liability coverage and what can be pursued in a liability claim depends on a variety of important details. Thus, passengers injured in taxis or rideshare vehicles are encouraged to consult knowledgeable legal counsel.

I work and have a company car, what should I be aware of when it comes to car insurance?

Motorists who drive company cars should be concerned about recent changes to Michigan’s auto insurance law. Under the law, if an employee is injured while occupying a car owned or registered by the employer, then the employee must seek no-fault benefits from the company of that insured the vehicle. Yet under the new law, employers can purchase limited no-fault coverage for their company cars. And those limitations will likely apply to the employee, even if the employee choses unlimited coverage under their own auto policy. Employees injured in company cars may also submit workers’ compensation claims as well as a liability claims against the driver and owner of the at-fault vehicle. Thus, employees injured in company cars should seek competent legal advice to navigate their potentially complex claims.                                                          

I’m a veteran and rely on VA benefits for my healthcare coverage. Can I opt-out of PIP coverage? If I am injured in auto crash will my medical bills be covered?

Under Michigan’s new auto no-fault law, consumers are presented with several options of Personal Injury Protection, or PIP, coverage.  However, military veterans who use the U.S. Department of Veterans Affairs (VA) as their primary health care provider are not eligible to “opt out” of no-fault coverage — instead, those drivers must buy some level of protection under no-fault insurance. According the Department of Insurance and Financial Services (DIFS) October 12, 2020 bulletin, VA benefits do not qualify as a Qualified Health Insurance coverage because VA benefits “excludes or limits coverage for injuries related to motor vehicle accidents.”  The Bulletin further explains that only under extremely limited circumstances does VA benefits reimburse a veteran for “emergency care in a non-VA facility” after a car accident.

I am in the military and have TRICARE for health insurance.  Does this cover auto injuries if I am injured off duty? 

In a bulletin issued by the Michigan’s Department of Insurance and Financial Services (DIFS) on October 12, 2020, those serving in the U. S. Military and their families who have health coverage from “TRICARE through the U.S. Defense Health Agency – is considered to be Qualified Health Coverage for the purposes of no-fault auto coverage” and are eligible to opt-out of PIP. However, be mindful that most health insurance plans are designed to “put you back together,” but do not cover long-term care needs if you or your family members suffer severe injuries. The best option, with the least risk, which ensures access to care, therapies, home modifications, transportation and durable medical equipment and safeguards you from medical bankruptcy is to purchase Unlimited/Lifetime PIP coverage.