Court Ruled Out-of-State Policies Exempt from Michigan Law
The Michigan Court of Appeals held that state insurance minimums do not apply to out-of-state auto policies.
Updated on Oct. 5, 2026 in Insurance
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The Michigan Court of Appeals determined that out-of-state insurance policies are not bound by Michigan statutory minimum coverage requirements. This ruling affirmed summary disposition for Geico General Insurance Company in a dispute regarding coverage limits.
Why it matters
The decision clarifies the jurisdictional reach of Michigan insurance statutes, confirming that mandatory coverage minimums apply only to policies issued or delivered within the state for vehicles registered locally.
The court found that policies are exempt from Michigan's $250,000 per person and $500,000 per occurrence minimums if the vehicle is garaged outside the state. Furthermore, mandatory no-fault coverage is only required if a vehicle operates in Michigan for over 30 days.
The players
Michigan Court of Appeals
This is an intermediate appellate court that hears appeals from the circuit courts and various state administrative agencies.
Geico General Insurance Company
This is a subsidiary of Berkshire Hathaway that provides automobile insurance products to consumers across the United States.
The details
The dispute involved a Geico policy issued in New York for a vehicle garaged in that state, which the defendant argued should be reformed to meet higher Michigan standards. The court found that MCL 500.3009 and MCL 500.3102 are unambiguous in limiting their scope to Michigan-connected policies and vehicles.
Timeline
February 2024: The defendant filed a negligence claim.
October 5, 2026: The Michigan Court of Appeals issued the ruling.
Roadmap
This case clarifies how insurance law intersects with state-to-state vehicle registration. It reinforces the limits of state regulatory authority when policies are underwritten in different jurisdictions.
Drivers with policies issued outside of Michigan may not be covered at Michigan's higher statutory minimums if an accident occurs in the state. Residents should check their policy terms if they plan to move or store a vehicle in Michigan for more than 30 days.
The takeaway
Insurance regulations are often tied to the specific state where a policy was issued and a vehicle is primarily garaged. If you are relocating or keeping a vehicle in a new state long-term, ensure your coverage meets the local requirements of your current home.
Further reading
For more on state-specific coverage requirements, visit the Michigan Insurance page.
Source note: This article includes information reported by Michigan Lawyers Weekly.
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