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Who Pays No-Fault Benefits For Pedestrians and Bicyclists?

Lawyer Commentary on No-Fault Statute: MCL 500.3115

Personal protection insurance benefits under the assigned claims plan for claims of persons who are not occupants of a vehicle

You do not need to be an occupant of a car or truck involved in a collision in order to receive No-Fault insurance benefits. A non-occupant, such as a pedestrian, bystander, bicyclist, etc., injured in an auto accident is entitled to No-Fault benefits to cover medical expenses and lost wages.

The order of priority for determining what auto insurance company will pay on a non-occupant’s claim for No-Fault benefits is similar to that described in MCL 500.3114 for a motor vehicle occupant.

Specifically, non-occupants, such as pedestrians, bystanders and bicyclists, who suffer personal injury as the result of being struck by a vehicle in Michigan, will seek No-Fault benefits from the following sources in the following order:

  • The non-occupant’s No-Fault auto insurance policy for his or her own personal motor vehicle in which he or she is the named insured. (MCL 500.3114(1); 500.3115)
  • The No-Fault auto insurance policy that the non-occupant’s spouse has on his or her motor vehicle. (MCL 500.3114(1); 500.3115)
  • The No-Fault auto insurance policy that a resident relative of the non-occupant has on his or her motor vehicle. (MCL 500.3114(1); 500.3115)

However, if No-Fault coverage is unavailable through the sources above, then the non-occupant “shall” apply for benefits through the Michigan Assigned Claims Plan. (MCL 500.3115) Coverage of a non-occupant’s No-Fault PIP medical benefits through the Assigned Claims Plan will be limited to $250,000. (MCL 500.3172(7)(a))

IMPORTANT: Under the new No-Fault law that took effect on June 11, 2019, once the new coverage levels for No-Fault PIP medical benefits become available in auto insurance policies issued or renewed after July 1, 2020, a non-occupant’s No-Fault PIP medical benefits will limited by the coverage level chosen in the policies of the non-occupant’s spouse and/or resident relative. (MCL 500.3107c(5))

Those coverage levels include: $50,000 (for drivers on Medicaid); $250,000; $500,000; or “no limit” (i.e., unlimited). (MCL 500.3107c(1))

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.