Does My No-Fault Insurance Cover a Rental Car Accident?

A rental car crash leaves more questions than a typical accident. Two insurers point at each other, the rental contract you signed has four pages of fine print, and you are sitting in an emergency room wondering who is going to pay the bill.

The other driver’s insurer wants a recorded statement before they say anything. Your own carrier is asking for paperwork you have never seen. The rental company says to talk to the other driver’s insurance, and a defense medical exam is already scheduled. Meanwhile, the medical bills keep coming, and you have missed a week of work.

Michigan’s no-fault system was built to keep personal injury medical bills and wage loss moving regardless of who hit you, and it applies whether the car in your driveway is yours or a rental. At Matz Injury Law, our concentration on Michigan no-fault and uninsured motorist claims means we map the PIP priority order, separate the mini tort from third-party liability, and keep every filing inside its statutory deadline.

Does Michigan No-Fault Insurance Cover a Rental Car Accident?

The short answer is Yes. If you carry a Michigan no-fault policy, your personal injury protection (PIP) benefits can pay medical bills and lost wages after a rental car crash, regardless of who caused the accident, under Michigan’s no-fault statute, MCL 500.3105.

PIP often follows the insured person, not just the vehicle. If you are the named insured on a Michigan no-fault policy, the spouse of a named insured, or a resident relative covered through the household, your PIP may travel with you in a rental or borrowed car. For out-of-state crashes, Michigan PIP can still apply when the accident happens in the United States, its territories and possessions, or Canada and the statutory eligibility rules are met.

Who Pays for Your Injuries After a Not-at-Fault Rental Car Accident in Michigan?

Michigan splits a rental car crash into three coverage tracks. Medical bills and wage loss come out of your own PIP, vehicle damage follows separate rules, and a pain-and-suffering claim depends on whether your injuries meet the statutory threshold.

Your PIP Benefits Under MCL 500.3114

Your Michigan auto policy almost always pays first for medical bills and wage loss, regardless of fault. Under the priority rules for Michigan car accidents in MCL 500.3114, your own policy often pays first, then a spouse’s or resident relative’s policy, and finally the Michigan Assigned Claims Plan if no applicable household coverage exists.

Your PIP benefits in a rental car can include:

• Crash-related medical care, with no lifetime dollar cap if you elected unlimited PIP medical coverage.
• Up to $20 per day for household help for three years when a doctor deems it necessary.
• Hourly reimbursement for attendant care or a nurse’s aide performing medically necessary services.
• Mileage reimbursement for crash-related travel to the doctor, hospital, pharmacy, or therapy.
• 85% of pre-tax lost wages for up to three years under MCL 500.3107, non-taxable.
• Survivor’s loss benefits for qualifying dependents after a fatal crash.
• Funeral and burial expenses up to the amount selected in the policy, between $1,750 and $5,000.

Michigan drivers can choose from several PIP medical coverage levels, including unlimited, $500,000, $250,000, $250,000 with certain exclusions, $50,000 for eligible Medicaid enrollees, or a PIP medical opt-out for eligible Medicare enrollees. Our firm recommends unlimited PIP medical coverage because a serious injury can exhaust capped coverage quickly. Our attorneys document every category so you can pursue every dollar your policy supports.

The At-Fault Driver’s Liability Coverage

If your injuries cross the serious-impairment threshold under MCL 500.3135, you can pursue a pain-and-suffering claim against the at-fault driver’s liability coverage. Michigan’s residual liability minimums currently start at $250,000 per person and $500,000 per accident under the 2019 reform, though policyholders can buy down to $50,000/$100,000.

When the at-fault policy cannot pay your losses in full, your uninsured or underinsured motorist coverage may step in, and medical bills above your PIP cap may also be pursued from the at-fault driver.

Rental Company and Credit Card Coverage

The rental agreement usually offers add-on coverage at the counter:

• Collision damage waiver (CDW)
• Loss damage waiver (LDW)
• Supplemental liability insurance (SLI)

CDW and LDW waive the rental company’s right to charge you for damage to the car, though exclusions for off-road use or unauthorized drivers can nullify them.

Some credit cards include rental car coverage when you pay with the card, but the terms vary by card, vehicle type, rental length, and whether the benefit is primary or secondary. Collision coverage or a card benefit may pay to repair the car, while a CDW usually waives the rental company’s right to charge you for covered damage.

What Michigan No-Fault Does Not Cover in a Rental Car Accident

Michigan no-fault has clear limits after a rental car accident. Two key gaps require coverage from somewhere other than PIP.

Damage to the rental car itself is not a no-fault benefit, so collision coverage, a CDW, or a credit card benefit has to cover the repair bill and any loss-of-use fee on the rental agreement.

The federal Graves Amendment (49 U.S.C. § 30106) generally shields a rental company from liability based only on its ownership of the vehicle. That means the liability trail usually leads back to the at-fault driver, unless there is a separate basis to claim the rental company was negligent or engaged in wrongdoing.

Michigan’s Mini Tort and Damage to the Rental Car

Michigan’s mini tort under MCL 500.3135(3)(e) lets you recover up to $3,000 from the at-fault driver for vehicle damage your own insurance did not cover, including your collision deductible. You have to prove two things: more than 50% of the fault lies with the person you are suing (usually established by the police report or witness testimony), and your car was damaged with at least some repairs not covered by your own insurance.

In a rental, the mini tort matters when you paid a deductible or the rental agreement leaves you responsible for vehicle damage that another driver caused and your own coverage did not fully cover. Because $3,000 may not close the gap on a badly damaged rental car, collision coverage, a CDW, or card benefits may handle most of the recovery.

What to Do After a Not-at-Fault Rental Car Accident in Michigan

The early hours after a rental car crash set the record for every claim that follows. Who you talk to, what you sign, and what you document feed into your PIP file and any third-party case.

The First 24 Hours: Police Report, Photos, and Medical Care

Move out of traffic if you can, call 911 for medical attention, and seek care the same day even if you feel fine. Soft-tissue injuries and concussions often surface hours or days later, and the medical record anchors any later PIP and liability claim.

Once you have addressed immediate medical needs, ask the responding officer for a police report, photograph every vehicle, license plate, and scene condition, and collect insurance information from every driver and witness.

Reporting the Accident to Every Insurer Involved

Most rental agreements require you to notify the rental company immediately, and late notice can put supplemental coverage at risk. Your own auto insurer also needs to hear from you so your PIP claim starts within the one-year deadline for proper notice, payment, or legal action.

The other driver’s insurer will likely call within days. Talk to an attorney before giving a recorded statement, because what you say can later limit what you recover. If an insurer delays or denies benefits, you can file a complaint with the Michigan Department of Insurance and Financial Services.

Out-of-State Rental Car Accidents and Michigan Residents

If you carry a Michigan no-fault policy, your PIP benefits may continue when the crash happens in another U.S. state, a U.S. territory or possession, or Canada. Medical and wage-loss protection can travel with you when the statute’s eligibility rules are met.

Tort law is where it gets complicated. The state where the crash happened may control fault, liability limits, and whether you can sue for pain and suffering. Michigan’s serious-impairment threshold may not apply, and the crash state’s negligence rules may instead. A Michigan no-fault attorney can help keep the PIP and liability claims aligned.

Why Choose Matz Injury Law for Your Michigan Rental Car Accident Case

Our firm has handled Michigan no-fault PIP and liability recovery for rental car crash victims for more than four decades, and that concentration on the no-fault statute is what this kind of case turns on. Steven Matz founded the firm in 1977, holds an AV Preeminent rating from Martindale-Hubbell, and is a Michigan Lawyers Weekly Hall of Fame inductee. Together with Jared Matz, our father-and-son team has recovered over $300 million for Michigan clients.

We charge 22%, not the 33 1/3% contingency standard across Michigan, and we travel from our Southfield office to all 83 Michigan counties, including the Upper Peninsula. Clients work directly with their attorney from the first call.

Testimonials From Matz Injury Law Clients

“After a vehicle accident you should seek legal representation whether or not you are at fault. I contacted Matz Law Firm by leaving a message and received a return call promptly from attorney Jared Matz. We agreed that I would send accident specifics via email. Upon receipt, he contacted me immediately, offering his opinion and advice. He was very thorough and explained the financial and legal considerations for each decision. I trusted Jared Matz and all issues were reasonably and effectively resolved. Jared Matz has great communication and negotiation skills, a good understanding of the law, and broad legal experience. Attorney Jared Matz and his staff were consistently courteous, considerate and empathetic. My interactions with Jared Matz and the Matz Injury Law Firm resulted in a good outcome. Because of my positive experience with Jared Matz as my legal representative, I recommend attorney Jared Matz and Matz Injury Law Firm” — Annette L.

“Absolutely the most amazing lawyer we could have asked for . I couldn’t thank you enough for sticking with us and helping us with everything! Jared is the guy for you ! 10/10” — Victoria T.

“My family is grateful for Steve Matz’s professional handling of our case. Steve was very thorough, candid, responsive, and strategic in his approach throughout our legal proceedings. If ever in a situation again like my family has experienced over the past year, we would immediately retain Matz Injury Law to represent our interests. Thank you Steve.” — John P.

Frequently Asked Questions

Can I Still Receive No-Fault Benefits if I Was a Passenger in the Rental Car?

Yes. Michigan PIP can cover passengers in a rental car, though the priority analysis differs from the driver’s. If you are the named insured on your own Michigan no-fault policy, the spouse of a named insured, or a resident relative covered through the household, that household policy often pays first under MCL 500.3114. If no applicable coverage exists, the claim may move through the remaining statutory priority rules or the Michigan Assigned Claims Plan.

Can I Pursue the At-Fault Driver if They Left the Scene After Hitting My Rental Car?

Yes, though the path depends on what you know about the driver. For a hit-and-run, uninsured motorist coverage on your own Michigan policy typically steps in, and your PIP keeps paying because it follows the insured person. A police report is essential, and if the driver is later identified, the three-year tort statute under MCL 600.5805 still allows a liability claim.

Does My Health Insurance Pay if My PIP Medical Benefits Run Out?

It depends on the PIP coverage level you selected under the 2019 reform and whether you have Qualified Health Coverage. If you chose a capped PIP or opted out under Medicare, your health insurance typically covers crash-related bills once PIP runs out. You may also pursue excess medical expenses from the at-fault driver under MCL 500.3135.

Can I Choose My Own Doctor After a Rental Car Accident in Michigan?

Yes. Under Michigan no-fault, you generally pick your own treating doctor, and reasonable and necessary crash-related care is a PIP benefit. A defense medical exam (DME) the insurer schedules is not treatment and does not replace your doctor.

How Long Do I Have to File a No-Fault Claim After a Rental Car Accident?

You have one year to file a PIP application under MCL 500.3145 and three years to file a third-party tort claim under MCL 600.5805. Both clocks start on the date of the accident, and a missed deadline forfeits the related recovery.

Talk to a Michigan Rental Car Accident Lawyer Today

If a Michigan rental car crash left you with medical bills, missed work, and claim questions, our team can sort out the PIP application, the mini tort, and any third-party liability. We offer a free consultation, charge 22% rather than the standard 33 1/3% Michigan contingency, and you owe no fee unless we win your case.

The one-year PIP notice deadline starts running on the date of the accident, so the sooner we look at your file, the more options stay on the table. Call us at 866-226-6833 or use our contact form, and we will travel to you anywhere in Michigan, from Southfield to the Upper Peninsula.