Michigan Court Affirms Geico Policy Limits Ruling
Appeals judges rule out-of-state insurance policies need not meet Michigan's minimum coverage requirements.
Updated on Oct. 23, 2026 in Insurance
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The Michigan Court of Appeals ruled that an out-of-state insurance policy does not have to follow Michigan's mandatory minimum coverage limits. The decision affirmed that Geico General Insurance Company is not required to reform coverage for a New York-registered vehicle.
Why it matters
The ruling clarifies that Michigan insurance statutes do not apply to policies issued in other states for vehicles not registered or garaged locally. This maintains specific protections for insurers against forced policy reformations based on out-of-state contracts.
The court maintained the $25,000 per person and $50,000 per occurrence liability limits found in the existing policy. These figures were upheld against an attempt to force coverage increases to $250,000 and $500,000.
The players
Geico General Insurance Company
An insurance provider that filed for a declaratory judgment to establish the validity of its out-of-state policy limits.
Michigan Court of Appeals
The intermediate appellate court that issued the ruling regarding the applicability of Michigan insurance statutes.
Chelsea Lewis
The plaintiff who sustained injuries in a vehicle accident and sought to reform insurance coverage limits.
Hafiz Kobir
A New York resident whose vehicle registration and insurance policy were at the center of the coverage dispute.
The details
Chelsea Lewis had sought to reform the policy limits following a vehicle accident involving New York resident Hafiz Kobir. Because the vehicle was not principally garaged in Michigan and spent fewer than 30 days in the state, the court found MCL 500.3009 did not apply.
Timeline
February 2024: Lewis filed a negligence claim against Kobir and Kristin Winter.
August 2024: Geico filed an action seeking a declaratory judgment.
October 23, 2026: The Michigan Court of Appeals issued the affirmed ruling.
Market Dynamics
This case clarifies the boundaries of MCL 500.3009 regarding the extraterritorial application of Michigan insurance mandates. It reinforces a precedent that prevents domestic regulations from automatically overriding contractual agreements made in other jurisdictions.
Drivers who frequently travel across state lines should understand that their current insurance coverage limits remain bound by the policy's home jurisdiction. This ruling reinforces that local minimum coverage requirements do not automatically extend to visitors.
The takeaway
This decision reinforces the importance of knowing your specific policy limits regardless of where an accident occurs. Readers should consult their insurance provider to verify if their current liability coverage meets the requirements of states they visit frequently.
Further reading
Learn more about local regulations on Insurance.
Source note: This article includes information reported by Michigan Lawyers Weekly.
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