Steve Sinas Argues Out-of-State No-Fault Case at Michigan Supreme Court
The issue in the case was whether our clients, who are Michigan residents, could recover no-fault insurance benefits when they were injured in a motor vehicle crash that occurred in Florida. Furthermore, they occupied a vehicle purchased and used exclusively in Florida at the time of the accident. This vehicle was insured under a Florida insurance policy. However, our clients had no-fault insurance coverage that covered several vehicles they used in Michigan.
Stephen argued that Michigan no-fault insurance coverage provides no-fault benefits to those injured in motor vehicle accidents regardless of whether the vehicle involved is specifically insured under a no-fault policy or not. In this regard, Michigan no-fault insurance follows the person and not the vehicle. This is why we can recover no-fault benefits when we are injured in motor vehicle accidents outside Michigan. Examples include injuries in rental cars, as passengers in friend’s out-of-state vehicles, or hit as a pedestrian or bicyclist in another state, to name a few.
The no-fault insurance company involved in this particular case argued that our clients should be disqualified from no-fault insurance benefits because they were using a vehicle that they owned and that did now have Michigan no-fault insurance coverage. However, under the statutory language of the disqualification provision of the Michigan No-Fault Act that the insurance company was relying on, in order for our clients to be disqualified from benefits, it must be proven that the vehicle they used exclusively in Florida was required to be registered in Michigan.
In response, Stephen argued that the vehicle registration rules under the Michigan Motor Vehicle Code were never intended to apply to vehicles not ever used in Michigan. Therefore, Michigan vehicle registration was not required for our client’s Florida vehicle. If our clients weren’t required to register their Florida vehicle in Michigan, they, therefore, cannot be disqualified from no-fault benefits.
It will likely take several months for Michigan Supreme Court to decide the case. We look forward to the developments in this important out-of-state no-fault decision.