Exclusions from Michigan No-Fault Benefits

Lawyer Commentary on No-Fault Statute: MCL 500.3113

PIP benefits; persons not entitled

Under certain situations a person will be disqualified from recovering Michigan No-Fault insurance benefits (also called personal injury protection benefits (PIP)) under Michigan law. Three of the most frequently occurring situations are described below.

Stolen Vehicles

An automobile accident victim cannot recover PIP benefits if the individual is driving a car or truck that was taken unlawfully. However, if the injured person did not or should not have known that the motor vehicle was taken unlawfully, then he or she is entitled to PIP insurance benefits under Michigan law.

It is important to note that this disqualification arguably applies only to the thief or criminal. If an automobile accident victim is an innocent occupant of a stolen vehicle, he or she may still recover PIP insurance benefits. Similarly, if an innocent person is involved in an automobile accident with a car or truck that is stolen, his or her right to hire a lawyer and file a lawsuit claiming Michigan PIP insurance benefits, and to sue in tort for personal injury, pain and suffering, and excess economic loss, will not be affected.

Uninsured Vehicles

If the injured person was driving his or her own vehicle at the time of the car accident and if that vehicle was “uninsured,” i.e., it was not covered by a valid, No-Fault auto insurance policy, then the injured person will be disqualified from receiving PIP benefits. An “owner” is a person who has the right to “use” of a motor vehicle for over thirty days or an individual who holds title to the motor vehicle. Read here about an important insurance coverage in case of an accident with an uninsured vehicle.

Out-of-State Residents

An out-of-state resident (i.e., a non-Michigan resident) who is injured in an auto accident in Michigan is disqualified from receiving No-Fault PIP insurance benefits unless he or she “owned a motor vehicle” that was both registered and insured in Michigan.

No-Fault Lawyers of Michigan Auto Law

The lawyers of Michigan Auto Law have been specializing in automobile No-Fault litigation for more than 50 years. If you have been injured in a car accident, truck accident or motorcycle accident and need help with your No-Fault insurance benefits, please call one of our expert attorneys for a free case evaluation at (800) 968-1001 or fill out our consultation form. There is no fee or obligation.

We are here to help you.