No-Fault Benefits When the Driver Was Intoxicated in Michigan

No, being drunk does not by itself cost a driver no-fault PIP benefits in Michigan. MCL 500.3113 lists the people who are not entitled to personal protection insurance (PIP) benefits, and intoxication is not on the list.^[1] PIP benefits are due "without regard to fault."^[2] Intoxication matters much more in lawsuits for damages: it is an absolute defense that the injured person was impaired by alcohol or a controlled substance and, as a result, was 50% or more the cause of the accident.^[5]

This page explains PIP, the real PIP exclusions, and how intoxication affects lawsuits after a crash. It is written for injured drivers, passengers, families and people hit by impaired drivers. Lawsuits against the impaired driver are covered in depth on suing an impaired driver after a crash.

What PIP is

Personal protection insurance is the no-fault part of a Michigan auto policy. An insurer is liable to pay PIP benefits for accidental bodily injury arising out of the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle.^[2] Benefits include allowable expenses, meaning reasonable charges for reasonably necessary products, services and accommodations for care, recovery or rehabilitation, and work loss for the first 3 years after the accident.^[7] Owners of vehicles required to be registered in Michigan must carry PIP, property protection and residual liability coverage, with exceptions in the statute.^[8]

PIP generally follows the person. A PIP policy applies to the person named in it, the person's spouse, and a relative of either living in the same household, for injuries from a motor vehicle accident, subject to exceptions.^[9]

The myth: "drunk drivers lose their PIP"

Some websites say an intoxicated driver forfeits no-fault benefits. The statute says otherwise. Under MCL 500.3113, a person is not entitled to PIP benefits if, at the time of the accident, any of these existed:^[1]

1. The person was willingly using a vehicle taken unlawfully, and knew or should have known it was taken unlawfully.^[10]
2. The person owned or registered a vehicle involved in the accident that did not have the required insurance.^[1]
3. The person was not a Michigan resident, unless they owned a vehicle registered and insured in Michigan.^[10]
4. The person was driving a vehicle on which they were named as an excluded operator.^[1]
5. The person was the owner or operator of a vehicle for which coverage was excluded under a policy exclusion authorized by section 3017 or 3018.^[1]

Driving while intoxicated is not on that list.^[1] The two exclusions in item 5 concern rideshare driving while logged on or giving a ride, and car-sharing periods; section 3018 was added by 2024 PA 224, effective 17 October 2025.^[11]

One related limit: bodily injury is "accidental" for PIP purposes unless it was suffered intentionally by the injured person or caused intentionally by the claimant.^[3] The statute does not mention intoxication there.

An impaired driver who owned an uninsured vehicle involved in the crash, who took a car unlawfully, or who was a named excluded operator can lose PIP, but for that reason, not for the intoxication.^[1][4]

Lawsuits: where intoxication does matter

No-fault limits lawsuits. For a vehicle with the required insurance, tort liability is abolished except for listed claims, including intentionally caused harm, noneconomic loss above the threshold, and economic loss above PIP limits.^[12]

When the impaired person was hurt

Michigan's general tort statute gives defendants an absolute defense when the injured person "had an impaired ability to function due to the influence of intoxicating liquor or a controlled substance" and, as a result, was 50% or more the cause of the accident. If the impaired person was less than 50% the cause, the award is reduced by that percentage.^[5] No-fault lawsuits also use comparative fault, and no noneconomic damages are awarded to a party more than 50% at fault, or to an uninsured person driving their own vehicle.^[13]

The impaired person also has no claim against a bar that served them. The dram shop act says the allegedly visibly intoxicated person has no cause of action under it.^[14]

When someone else was hurt by the impaired driver

• Pain and suffering. A driver is liable for noneconomic loss only if the injured person suffered death, serious impairment of body function, or permanent serious disfigurement.^[6]
• What "serious impairment" means. An objectively manifested impairment of an important body function that affects the person's general ability to lead a normal life, with no minimum duration.^[15]
• Excess economic loss. Allowable expenses, work loss and survivor's loss above PIP limits can be claimed from the at-fault driver.^[16]
• Vehicle damage. Up to $3,000 for damage to a vehicle, to the extent not covered by insurance, for crashes after 1 July 2020, in small claims court where possible.^[17]
• The vehicle owner. An owner who let someone drive is liable for negligent operation, and consent is presumed when the driver is an immediate family member.^[18]
• Deadline. The general limitations period for injury claims is 3 years.^[19]

A bar or store that served a visibly intoxicated person may also be sued under the dram shop act, which has a 2-year limit and a 120-day notice rule.^[20][21] See Michigan's dram shop law.

Other help for people injured by impaired drivers

Michigan's crime victim compensation program is a payer of last resort: private insurance and other public funds must be used first, and a person criminally responsible for the crime is not eligible for an award.^[22][23] See crime victim compensation and rights of people injured by impaired drivers. A set-aside of the driver's OWI does not affect a victim's right to sue.^[24]

What this page does not cover

This guide did not research the PIP coverage-level choices Michigan drivers make, PIP notice and filing deadlines against one's own insurer, or court decisions applying these statutes to particular crashes. Insurance policies also contain their own terms, and an insurer may exclude coverage in the rideshare and car-sharing situations the statute allows.^[11] For the insurance-rate side of an OWI, see OWI and car insurance; for the criminal offense when someone is seriously hurt, see OWI causing serious impairment; and for other misconceptions, the myths page.