Michigan Owners - "No Fault" Insurance advice

[Dangermouse]

Need some help from MI owners, please.

My son is living in MI for a few months and has just had a minor accident and I am trying to understand the MI No Fault insurance system

The car is registered in GA and has "Liability Only" insurance (with fire and theft coverage, but no collision). Someone pulled out in front of him in a turn lane and there was minor damage to both cars - broken front bumper in our case. No physical injuries. I would guess $1200 in damage.

Had this occurred in GA, I would have claimed off the other persons insurance directly. My insurance wouldn't pay for it as it is a Liability only policy.

My reading of the MI No-fault system is that the other drivers policy will pay for damages to another vehicle that the other driver hits if the "other vehicle is properly parked" (which it wasn't) or "if the vehicle has comprehensive insurance", however it is not clear if this refers to the car that was hit, or the car that did the hitting.

I would prefer not to notify my own insurance Co until I know more about this, as my son is <21 and I am 100% sure they will raise his rates even though he wasn't at fault.

Anyone familiar with the system?

[DMCVegas]

Here' is Michigan's quick FAQ:
https://www.michigan.gov/documents/cis_ofis_ip202_25083_7.pdf

And a far better detailed brochure that answers your questions:
https://www.michigan.gov/documents/cis_ofis_noflt_gd_25094_7.pdf



My reading of the MI No-fault system is that the other drivers policy will pay for damages to another vehicle that the other driver hits if the "other vehicle is properly parked" (which it wasn't) or "if the vehicle has comprehensive insurance", however it is not clear if this refers to the car that was hit, or the car that did the hitting.

From what I'm reading, it refers to both for what it will NOT pay for. No-Fault coverage does NOT pay for damage to other vehicles that are actively driving on the road. Only unless they are inactive and parked, and subject to the same damage as property. I.e. hitting a fence, pole, wall, immobile parked car.

Normally the person whose actions cause a traffic violation are the ones at fault. So if someone executes an improper lane change, and as a result you hit them, then it would be the other person's fault. It looks however like this coverage doesn't pay for damage to other cars whatsoever.

My guess here is that the police didn't show up because your son didn't get cited for failing to register his car in Michigan. Which is against the law. And since the car wasn't registered in Michigan, and didn't have No-Fault insurance, you're not exactly afforded that same protection. But since it wasn't you're fault, no worries there.

I don't know anything about your insurance agent, but most of the ones I've ever dealt with will be more than happy to answer "off the record" questions like this. But that is the question though, "What specifically are you asking?" Are you trying to get your vehicle repaired? Because if the other person only had "No_Fault" insurance, that ain't happening. This isn't even "Liability Only" coverage. It's just property and personal injury with the driver remaining liable for the cost of whatever vehicle damage they cause.

Now I'm not from Michigan, so perhaps there is another aspect or loophole that someone is familiar with. But from the sound of it, you've just got to lick your wounds on this one and fix the car yourself. And of course to get the vehicle registered in Michigan along with a driver's license for your son. Time to hit up the junkyard for a new bumper and other pieces.

[dodint]

I would not get a new license and vehicle registration if I were only staying a few months.

[Dangermouse]

Yes, I read those two pdfs too before posting and I read it like you, but wanted to check with an actual resident.

Yes, there was/is a police report but it hasn't been issued yet, but even if it says that the other driver was 150% responsible, I don't think it matters.

What am I asking? - Will the other drivers NF Insurance will pay for damages to my car? If so, then I will pursue it directly with them. If not, then we will DIY the repairs. I am 95% sure they won't.

Of course, that is assuming that the other driver just had minimum NF insurance. If he has comprehensive policy, then it would pay for my damages. It was a newer model Fusion, so it may be.

Yes, I could just call my agent, but I have learned to get all my ducks in a row before doing that.

[David T]

I would not get a new license and vehicle registration if I were only staying a few months.

Most States require you to register and get a license if you are living there over 30 days. Collage students as a general rule ignore this. No-Fault in most States only applies to physical injury, not property damage. Some States have an uninsured motorists fund for property damage if you get hit by an uninsured motorist to cover property damage and in some cases it covers hit-and-run. In this case you should file a "Claim of Record" to put your insurance company on notice so they can't say you didn't tell them and not cover you. The other driver may actually fine a personal injury claim against you so you must cover yourself. Next, using the information your son should have gotten, call the other driver's insurance company and file a claim. Get 2 legitimate estimates on what it will cost to fix your car and send it to the other insurance company. As for driving in MI on GA insurance, that is not good if you are living there. The insurance requirements in GA may not be enough coverage in MI. You need to have a long talk with your insurance agent.

[Dangermouse]

Rest assured, we squared it away with our agent before he went up there.

[dodint]

Most States require you to register and get a license if you are living there over 30 days. Collage students as a general rule ignore this.

Ultimately it comes down to where you're domiciled. In PA, for example, they have tests for domicile. Things like where you pay your mortgage/rent, receive mail, hang family photos, vote, etc.

You can drive as long as you want with an out of state license in Michigan so long as your domicile is in another state. Once you move into Michigan and establish your domicile there you are then compelled to move your license and registration over. OPs son is living there 'for a few months' and as such would not be required to register anything with the state of Michigan.

Consult Michigan Vehicle Code sections 257.301/302/302a for direct guidance.

PA is the same way. I'm planning a move there in November but since my wife is staying behind in WI for a while I'm not changing domicile to PA until she does, if ever. This is helpful because PA has archaic inspection programs/emissions testing and WI does not. Not to mention I've already prepaid for my registration for the next 1-2 years for vehicles and motorcycles, respectively.

[DMCVegas]

Not necessarily. It depends entirely upon the state's individual laws. Michigan for example defines residency & domicile under Section 206.18.
http://www.legislature.mi.gov/(S(r3k1bobcg23nb3lmsrqdd1m5))/mileg.aspx?page=GetObject&objectname=mcl-206-18

Michigan is kind in that it gives away 183 days before establishing residency. But other states will say that as soon as you live and/or have gainful employment within the state, you're automatically considered a resident and must register your car immediately without any grace period. The only universal exception being service men and women.

Still, you need to really check and verify with whatever state you're residing in/relocating to. You have to be sure that you're not breaking any laws, because it can really come back and haunt you if you're not careful. I've heard many people who have moved to Vegas and insisted upon keeping their out of state plates because of cheaper registration and insurance rates. All citing that "domicile" defense because of family insurance plans, only to get pulled over and ticketed severely for failure to register their cars in Nevada and obtain minimum Nevada auto insurance.

The laws vary from state to state, so what works in one place may not in another.

[dodint]

I initially wrote that PA mentions 181 days as a threshold but didn't want my post to meander beyond the scope of what I was trying to say so I deleted it. In my own situation I plan to stay a WI resident until the house sells. Hopefully in less than 181 days. ;)

To nit pick, that definition linked above comes from the tax code and not the motor vehicles code. § 18 1(a), in context, is talking about taxation.

To your greater point though, absolutely look up the law for your jurisdiction. Or consult an attorney.

And, to wit, absolutely nothing I say is legal advice. Not for a few years, anyway. And even then proceed with caution.

[Dangermouse]

Well, just to complete this thread for any future readers, the answer is: $1000

That is the amount that a MI insured car's insurance company will pay an out-of-stater for damages when the out-of-stater has only liability coverage. Irrespective of the actual damages.

There exists a "mini-tort" for just such an occasion.