Are College Students Covered By No-Fault If Injured In A Car Accident While Away At School?

While your student is away at college, is she or he protected by your auto No-Fault insurance?

Your college student is covered by your family’s No-Fault auto insurance if he or she is injured in a car accident while away at school so long as your college student is still considered as a “resident relative” under Michigan’s No-Fault law.

Please note that for this blog I am writing about a college student who:

1. Does not have her or his own car on campus – so no auto insurance; and
2. Is not married to someone who does.

Under Michigan’s Auto No Fault law, a student who is away at college is generally considered covered and protected by her or his parents’ auto No-Fault insurance policy if the student qualifies as a “resident relative” of her or his parents, i.e., a “relative … domiciled in the same household …” (MCL 500.3114(1))

This rule applies regardless of whether the student’s college is located in Michigan or out-of-state because No-Fault benefits apply to accidents that occur “within the United States, its territories and possessions, or Canada.” (MCL 500.3111)

To determine whether a student who is away at college is, nevertheless, still “domiciled” with her or his parents for No-Fault purposes, the Michigan Supreme Court has recognized that Michigan courts consider the following factors:

• The subjective or declared intent of the person of remaining, either permanently or for an indefinite or unlimited length of time, in the place he contends is his “domicile” or “household.”
• The formality or informality of the relationship between the person and the members of the household.
• Whether the place where the person lives is in the same house, within the same curtilage or upon the same premises of the insured.
• The existence of another place of lodging by the person alleging “residence” or “domicile” in the household.
• Whether the claimant continues to use his or her parents’ home as his or her mailing address.
• Whether he or she maintains some possessions with his or her parents.
• Whether he or she uses his or her parents’ address on his or her driver’s license or other documents.
• Whether a room is maintained for the claimant at the parents’ home.
• Whether the claimant is dependent upon the parents for support. 

The following are examples of when a college student has been deemed to be “domiciled” with her or his parents:

• The college-student “plaintiff kept the majority of his personal possessions at his parents’ home …, used his parents’ address on his … driver’s license, had his own bedroom at his parents’ home, which remained empty in his absence, and returned to [his parents’ home] during holiday breaks and between school years. The evidence further established that plaintiff was financially dependent upon his parents, who were paying for his college education, and that plaintiff’s father claimed him as a dependent on his tax returns.” (Goldstein v. Progressive, Michigan Court of Appeals, 9/27/1996, #175458)
• The college-student “[p]laintiff was 24 years of age at the time of the accident. Plaintiff maintained and still maintains an apartment in Toledo, Ohio where he works and attends the University of Toledo part-time. He admitted that he had no plans to move back to his parents’ home, but also stated that he considered his parents’ home to be his main residence. His parents maintain a fully furnished bedroom for him at their home, whereas he only has modest furnishings and personal belongings at his apartment. Plaintiff also stores clothing and ‘all kinds of other things’ at his parents’ home. Furthermore, plaintiff was permitted to come and go freely at his parents’ home and returned to his parents’ home for weekends, holidays, and for a period of months after his injury. While plaintiff did receive credit card bills and utility bills at his apartment, he had a Michigan driver’s license with his parents’ address on it and used that address for his employment records, college registration, tax records, and bank statements. In addition, although plaintiff works full time and pays for his own food and rent, his father pays his tuition, car payments and insurance payments. Likewise, his mother is a joint holder on all three of his bank accounts and managed those accounts on his behalf. Finally, when plaintiff was injured, his parents retired his credit card debts, which were approximately $15,000. While plaintiff has taken longer than the traditional four-years to earn his degree and was not able to state with certainty whether he intended to return to his parents’ home upon graduation, the fact that he was attending school and was largely dependent upon his parents for financial support is indicative of the fact that he had not yet fully moved out on his own. Furthermore, his deposition testimony and his use of his parents’ address for his most important documents and mail clearly evince a belief that his permanent residence was with his parents. Therefore, taken as a whole, these factors strongly favor the determination that plaintiff was still domiciled at his parents’ home at the time of the accident.” (Stamm v. State Farm Mutual Automobile Insurance Company, Michigan Court of Appeals, July 19, 2005, #261225)
• The college student intended to “use her parents’ home as an ‘anchor’ in her life … as a home base.” She has a formal relationship with her parents (and her brother who lived in the home) as contrasted with the “very informal” relationships she’d had with friends and acquaintances with whom she’d lived from time to time. “[I]mportant documents” such as “documents related to [the college student’s] 2000 tax return, her license, the Secretary of State, and car insurance were mailed to her parents’ home.” This included “voter registration,” “car title” documents and “college loan applications.” (Gilmore v. Nationwide Insurance Company, Michigan Court of Appeals, January 15, 2004, #244825)

It’s also important to note that in the past, I’ve written about how insurance agents are taking advantage of college kids who are likely constructive owners of cars they are driving while they are away at college.

Here’s the issue: If you’re an out-of-state resident – and if you live out of state and go to school in Michigan then you are an out-of-state resident – and if your car is in Michigan for more than 30 days in any one year, then under Michigan law you are required to both register your car in Michigan and to carry Michigan No-Fault (PIP) insurance.

If you do not get the required Michigan auto insurance and you are involved in a car accident, then you could be held financially liable to reimburse any and all auto insurers for money they spent on accident-related medical expenses and lost wages to the other people who were injured in the crash – even if you were 100% not at-fault. (MCL 500.3177(1))

Are you a Michigan college student or snowbird who was injured in an out-of-state car accident and wondering how your insurance coverage will impact your claim? Call Michigan Auto Law for a free consultation

If you’re a Michigan college student who was injured in an out-of-state crash while you were away at school or if you’re a snowbird who has been injured in a crash in a sunny state (while avoiding Michigan’s cold and nasty winters) and have questions about how your insurance coverage affects your claim, call us now at (800) 968-1001 for a free consultation with an experienced car accident attorney. There’s no cost and no obligation. You can also reach out through our contact page or chat with us live on our website.

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More importantly, this client-focused approach leads to better and faster settlements for our clients. Michigan Auto Law has recovered more million-dollar settlements and trial verdicts for motor vehicle accidents than any other lawyer or law firm in Michigan. We’ve also recovered the highest ever reported truck accident and car accident settlement in the state.

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