Our lawyers are often asked about how Michigan No-Fault insurance works when insured drivers are transporting other people (outside of their family) and an auto accident occurs. Here’s an example:
Q. If I’m driving another child in my car and have an accident, how does my auto insurance apply?
A. The passenger, in this scenario a child, would first pursue No-Fault insurance benefits with the insurer of a relative who lives with the child.
If the child does not have an insured relative in the same household, the child would look to the insurer of the owner or registrant of the vehicle involved in the car accident.
If the vehicle owner and/or registrant are uninsured, the child would look to the insurer of the driver of the vehicle he or she occupied during the car accident.
Finally, if no insurance is available through any of these sources, an accident claim must be filed with the Michigan Assigned Claim Facility (ACF). The State of Michigan established the Assigned Claims Plan to provide financial help to people injured in uninsured motor vehicle accidents, who have no auto insurance coverage of their own.
Order of No-Fault insurance priority when driving a passenger in Michigan
To summarize, in a scenario where passengers (or children) are the occupants of a car driven by and owned by a non-resident family member, the order of priority of No-Fault insurers in case of a car accident would be as follows:
If you or a loved one has been injured in a car accident, and you’re unclear about your No-Fault insurance policy, call Michigan Auto Law at (800) 777-0028. You can also fill out our free consultation form.
Our auto lawyers can answer all of your insurance questions at no charge.