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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:

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 individual reasonably believed that his or her use of the motor vehicle was lawful, he or she is entitled to PIP insurance benefits under Michigan law.

It is important to note that this disqualification 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 is the owner of an uninsured motor vehicle that was involved in an auto accident, he or she 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 auto accident victim is not entitled to Michigan PIP insurance benefits if:

  1. He or she is not a resident of the state of Michigan.
  2. He or she is occupying a motor vehicle that is registered out of state.
  3. The motor vehicle is insured by an automobile insurer who is not authorized to sell insurance in the State of Michigan (See MCL 500.3163 for more lawyer commentary on out-state residents injured in Michigan).

If any of these situations applies to a person who has suffered personal injury in an auto accident under any one of these three circumstances, PIP insurance benefits will not be available under Michigan law.

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, please call one of our expert attorneys for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is no fee or obligation.

We are here to help you.


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