MCL § 500.3113(b) – Exclusion from PIP for uninsured vehicle owners
Table of Contents
Code Details
Chapter 500
Act 218 of 1956
218-1956-31
Exact Statute Text
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* 500.3113 THIS SECTION IS AMENDED EFFECTIVE OCTOBER 17, 2025: See 500.3113.amended *
500.3113 Person not entitled to personal protection insurance benefits.
Sec. 3113.
A person is not entitled to be paid personal protection insurance benefits for accidental bodily injury if at the time of the accident any of the following circumstances existed:
(a) The person was willingly operating or willingly using a motor vehicle or motorcycle that was taken unlawfully, and the person knew or should have known that the motor vehicle or motorcycle was taken unlawfully.
(b) The person was the owner or registrant of a motor vehicle or motorcycle involved in the accident with respect to which the security required by section 3101 or 3103 was not in effect.
(c) The person was not a resident of this state, unless the person owned a motor vehicle that was registered and insured in this state.
(d) The person was operating a motor vehicle or motorcycle as to which he or she was named as an excluded operator as allowed under section 3009(2).
(e) The person was the owner or operator of a motor vehicle for which coverage was excluded under a policy exclusion authorized under section 3017.
MCL § 500.3113(b) Summary
This section of Michigan law outlines specific situations where an individual involved in an automobile accident is not eligible to receive personal protection insurance (PIP) benefits, also known as no-fault benefits. Specifically, subsection (b) states that a person is not entitled to these benefits if, at the time of the accident, they were the owner or registrant of a motor vehicle or motorcycle involved in the accident that did not have the mandatory insurance coverage (security) required by MCL § 500.3101 (for motor vehicles) or MCL § 500.3103 (for motorcycles) in effect. In simpler terms, if you own or are the legal registrant of a vehicle that is uninsured, and that vehicle is involved in an accident, you generally cannot claim PIP benefits for your own injuries resulting from that accident.
Purpose of MCL § 500.3113(b)
The legislative intent behind this particular subsection is to uphold the fundamental principle of Michigan’s no-fault automobile insurance system: that all vehicle owners must maintain adequate insurance coverage. By denying PIP benefits to owners of uninsured vehicles, the statute serves as a strong incentive for compliance with mandatory insurance requirements. It aims to deter individuals from operating vehicles without the legally mandated security, thereby promoting responsibility among vehicle owners and contributing to the financial solvency and integrity of the no-fault insurance system. Without such a provision, individuals could potentially disregard insurance requirements, yet still claim benefits when involved in an accident, which would undermine the financial structure designed to compensate all covered individuals.
Real-World Example of MCL § 500.3113(b)
Imagine Sarah owns a car but, due to financial hardship, let her auto insurance policy lapse several months ago. She is the registered owner of the vehicle. One day, while driving her uninsured car, she is involved in an accident where she is not at fault. Sarah suffers injuries and seeks to claim personal protection insurance (PIP) benefits to cover her medical expenses and lost wages. However, because her vehicle was uninsured at the time of the accident, under MCL § 500.3113(b), Sarah would likely be denied these no-fault benefits. Even though the other driver might have been at fault for the accident, Sarah’s ownership of an uninsured vehicle bars her from recovering her own PIP benefits through the no-fault system.
Related Statutes
Several other Michigan statutes are closely related to MCL § 500.3113(b) and provide crucial context for understanding its application:
- MCL § 500.3101 – Security for Payment of Benefits Required: This statute mandates that owners or registrants of motor vehicles operated or permitted to be operated on public highways in Michigan must maintain certain levels of no-fault insurance coverage. Subsection (b) directly references this requirement.
- MCL § 500.3103 – Security for Motorcycles: Similar to 3101, this section specifies the insurance requirements for motorcycle owners and registrants, which is also referenced in 3113(b).
- MCL § 500.3105 – Personal Protection Benefits Generally: This statute broadly establishes who is entitled to personal protection insurance benefits for accidental bodily injury arising out of the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle. MCL § 500.3113 then carves out exceptions to this general entitlement.
- MCL § 500.3113(a), (c), (d), (e) – Other Exclusions: The other subsections of 3113 list additional circumstances under which a person is not entitled to PIP benefits, such as willingly using a stolen vehicle, being a non-resident without a registered and insured vehicle in Michigan, or being an excluded operator. These provisions, together with (b), define the limits of PIP eligibility.
Case Law Interpreting MCL § 500.3113(b)
Michigan courts have frequently interpreted MCL § 500.3113(b) to clarify its application, particularly concerning the definitions of “owner or registrant” and when “security… was not in effect.” A significant case in this area is *Maddox v. Allstate Ins. Co.*, 293 Mich. App. 494 (2011). In this case, the Michigan Court of Appeals affirmed the denial of no-fault benefits to a plaintiff who was injured while riding in an uninsured vehicle that she owned. The court reiterated that the clear language of MCL § 500.3113(b) precludes an owner of an uninsured vehicle from recovering PIP benefits for injuries sustained in an accident involving that vehicle. This ruling underscores the strict enforcement of the statute’s penalty for failing to maintain required security.
To learn more about the specifics of the *Maddox v. Allstate Ins. Co.* decision, you can view the search results on Google Scholar.
Why MCL § 500.3113(b) Matters in Personal Injury Litigation
MCL § 500.3113(b) is a critical statute in Michigan personal injury litigation because it can be an absolute bar to recovery of personal protection insurance (PIP) benefits, which are essential for covering medical expenses, lost wages, and other economic damages after an accident.
For plaintiffs (injured individuals), understanding this statute is paramount. If a client was the owner or registrant of an uninsured vehicle involved in their accident, they generally will not be able to claim PIP benefits, regardless of fault. This significantly impacts their ability to pay for healthcare and support themselves during recovery. Personal injury attorneys must diligently investigate a client’s insurance status and vehicle ownership at the outset of any case to manage expectations and strategize accordingly. In such situations, plaintiffs might need to explore other avenues for recovery, such as third-party bodily injury claims against an at-fault driver (if applicable), rather than relying on their own no-fault coverage.
For defense arguments in personal injury cases, MCL § 500.3113(b) provides a powerful tool to deny PIP claims. Insurers frequently invoke this section to dispute benefits for individuals who fail to comply with Michigan’s mandatory insurance laws. If an insurer can prove that the claimant was the owner or registrant of an uninsured vehicle involved in the accident, the claim for PIP benefits can be rightfully denied, potentially saving the insurance company substantial payouts. This makes verifying the claimant’s vehicle ownership and insurance status a routine and crucial step for defense attorneys and insurance adjusters.
In essence, this statute enforces accountability for Michigan drivers and car owners. Its impact means that failure to carry required auto insurance can result in devastating financial consequences for an injured party, even if they were not at fault for the accident itself.