Special Circumstances – Adult Children Not Living in Parents Household

The Personal Injury Protection Order of Priority has changed with the New No Fault Laws that went into effect June 11, 2019.

Important Notice
If an adult child is insured on a parent’s personal auto policy, but no longer lives in the parent’s home, they may not have the unlimited medical coverage that they had before the laws changed. The new law provides unlimited medical coverage under the Personal Injury Protection line of coverage, for the Named Insured and resident relatives only. Therefore, if the Adult Child has a different residence, they are not considered a resident relative. This Adult Child no longer has unlimited medical coverage. If they were injured in an auto accident they would apply for claim coverage through the Michigan Assigned Claim Plan (MACP). Coverage through this entity is capped at $250,000.

If a child is away at school and still has the parent’s address on their driver’s license, then they will be considered a resident relative in most situations and will continue to receive unlimited medical coverage.

Each Insurance Company has different underwriting rules when it comes to this situation so check with your agent on the best way to rectify this situation. Solutions may include writing a separate policy with the Adult Child as the named insured. If the parent is the titled owner of the vehicle, they will need to be named as an additional insured on the Adult Child’s policy to be covered properly as the vehicled titled owner or lessee.

Special Circumstances – Unmarried Couples

The Personal Injury Protection Order of Priority has changed with the New No Fault Laws that went into effect June 11, 2019.

Important Notice
If an unmarried couple lives together and is insured on the same personal auto policy, they may not have the unlimited medical coverage that they had before the laws changed. The new law provides unlimited medical coverage under the Personal Injury Protection line of coverage, for the Named
Insured and resident relatives only. Therefore, if only one of the couple is listed as the Named Insured on the policy, the other is not a Named Insured nor a resident relative. This unnamed person no longer has unlimited medical coverage. If they were injured in an auto accident they would apply for claim coverage through the Michigan Assigned Claim Plan (MACP). Coverage through this entity is capped at $250,000.

Each Insurance Company has different underwriting rules when it comes to this situation so check with your agent on the best way to rectify this situation. Solutions may include both individuals being listed as Named Insureds, spinning off into 2 separate auto policies, etc.