Having trouble receiving FOX 17? Click here:

Know the Law – No-fault & out-of-state accidents

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

Summer is almost here, which means Michigan families will traveling out-of-state on vacation and to visit family and friends. Unfortunately, some of these travelers will be involved in car accidents in another state, whether in their own vehicle or a rental car.

The question then becomes: does their Michigan no-fault insurance policy cover their out-of-state crash?

Generally, the answer to this question is “yes.” Michigan no-fault insurance typically covers the insured party and passengers in a car accident that takes place in the United States (including U.S. territories and possessions) or in Canada. For coverage to apply, the injured person must be: 1) a named insured under policy, or 2) a spouse or relative of a named insured, who is domiciled in the same household or an occupant of a vehicle involved in the accident

If the injured person is not a named insured on the policy and is not a relative domiciled with the insured party, to make a claim for no-fault benefits: 1) the injured person must have been occupying the vehicle and 2) the vehicle owner must be insured under a policy that specifically covers the vehicle involved in the accident.

Does Michigan no-fault insurance apply to accidents involving rental cars? Again, the answer in general is “yes,” a no-fault policy applies even when the insured party is not operating his or her own vehicle, and this includes rental cars. As long as there is a no-fault policy in place that covers the injured person, any medical expenses will be paid. This basically means that, for any car-accident related medical costs to be covered, the extra insurance that’s offered at the rental-car counter doesn’t really need to be purchased.

However, take note that a personal auto insurance typically does not cover two items when it comes to rental cars: 1) property damage or 2) theft. So persons renting a vehicle may want to buy the supplemental insurance that’s offered at the rental-car counter to cover these two things.

In the end, travelers should always review their Michigan auto insurance policy before heading out-of-state. And if you are uncertain about your no-fault coverage, contact your insurance agent for answers.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.