Out-of-State Car Accidents: Michigan's Right of Reimbursement
If you're a Michigan resident injured in a car accident in another state, the rules get complicated fast. Michigan's no-fault system follows you across state lines in some respects, but interacts with the other state's laws in unexpected ways. Understanding the right of reimbursement and how multi-state claims work is critical for maximizing your recovery.
Michigan No-Fault Benefits Apply Out of State
Under MCL § 500.3111, Michigan PIP benefits generally follow Michigan-insured vehicles and residents. If you're driving your Michigan-insured vehicle in Ohio, Indiana, or any other state and get into an accident, your Michigan no-fault policy covers your PIP benefits — medical expenses, wage loss, and replacement services — just as it would if the accident occurred in Michigan.
The Right of Reimbursement
Here's where it gets important: in most states outside Michigan, you can sue the at-fault driver for all damages including medical expenses. But Michigan's no-fault system already pays your medical expenses through PIP. This creates a potential overlap. The right of reimbursement allows your Michigan no-fault insurer to recover what it paid in PIP benefits from any third-party recovery you obtain in the other state. This reduces your net recovery but does not eliminate the value of pursuing the out-of-state claim.
Pursuing a Third-Party Claim in the Other State
Unlike Michigan, most states don't have a "serious impairment" threshold for pain and suffering. This means you may be able to recover pain and suffering damages in the other state even for injuries that might not meet Michigan's threshold. An attorney experienced in multi-state claims can evaluate which state's laws are most favorable for each component of your claim — using Michigan for PIP and the other state for third-party damages when advantageous.
Statute of Limitations Considerations
The statute of limitations for your third-party claim is governed by the state where the accident occurred, not Michigan. Some states have two-year limits, others have longer or shorter periods. Missing the other state's deadline can bar your claim entirely.
Injured out of state? Call Koussan Law at (313) 800-0000 or use our case calculator.
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Think you may have a case? Use our free Case Calculator to estimate your claim value, or call (313) 800-0000 for a free consultation.
