Out-of-state drivers hurt in Michigan

The PIP bar for nonresidents

MCL 500.3113(c) says a person is not entitled to PIP benefits if they were not a Michigan resident at the time of the crash, unless they owned a motor vehicle registered and insured in Michigan. The bar was added by 2019 PA 21, effective June 11, 2019. Because it is a bar on PIP entitlement, it also keeps nonresidents out of the assigned claims plan.

Residency is a question of fact. A college student, seasonal worker or person who recently moved may be a Michigan resident even with an out-of-state license. If your status is unclear, it is worth examining before accepting a denial.

What happened to the “certified insurer” rule

Before the reform, MCL 500.3163 required insurers that filed a certification in Michigan to pay Michigan PIP to their out-of-state policyholders hurt here. Many national insurers had filed. The 2019 amendment removed that requirement. The current section says an insurer authorized in Michigan is not required to pay PIP or property protection benefits to an out-of-state resident it insures for a Michigan crash, unless that person owns a vehicle registered and insured in Michigan.

Where your benefits come from instead

• Your own auto policy. Many states require or offer medical payments or personal injury protection coverage that applies to crashes anywhere in the country. Read your declarations page.
• Your health insurance for medical bills.
• Disability coverage through work for lost income.
• A lawsuit against the at-fault driver for everything else, described below.

Suing the at-fault driver

Michigan’s no-fault law limits lawsuits against drivers who carry required insurance. Two exceptions matter to visitors:

1. Economic loss by a nonresident (MCL 500.3135(3)(d)). Medical expenses, lost wages and other financial losses, if the injury caused death, serious impairment of body function or permanent serious disfigurement.
2. Noneconomic loss (MCL 500.3135(1)). Pain and suffering, under the same threshold. See the serious impairment threshold.

Both claims are subject to comparative fault. Your damages are reduced by your share of fault, and MCL 500.3135(2)(b) bars any damages to a party more than 50% at fault. See comparative fault.

The recovery is limited by the at-fault driver’s liability coverage. For Michigan policies issued after July 1, 2020, the default bodily injury limits are $250,000 per person and $500,000 per crash, though drivers may choose as little as $50,000 and $100,000. See how much insurance the other driver has.

Commercial vehicles and employers

Truck drivers and other workers from out of state face the same PIP bar, and the Supreme Court has applied the uninsured-owner bar strictly to owner-operators (Abdulla v Progressive, 2026). Workers’ compensation from your home state, and claims against a Michigan trucking company or employer, may also be available. See truck accidents and delivery and company vehicles.

Sources: MCL 500.3009; MCL 500.3113(c); MCL 500.3135(1), (2)(b), (3)(d); MCL 500.3163 (as amended by 2019 PA 21); MCL 600.5805; Abdulla v Progressive Southeastern Ins Co (Mich. Sup. Ct., July 7, 2026).