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Keep Michigan employee PIP priority separate from HNOA liability

Michigan’s no-fault law sends an employee’s personal-protection-insurance (PIP) claim to the insurer of a vehicle owned or registered by the employer when the employee or a qualifying household relative is injured as an occupant. That is a first-party injury-benefit priority rule, not a promise that a business HNOA policy covers the employee’s or company’s liability when a rented or employee-owned car is used for work. 1,2

What Is Hired And Non-Owned Auto?

Hired and non-owned auto (HNOA) liability protects the business when rented cars or employees’ own cars are used for work. It does not pay for damage to those vehicles, and it is not a substitute for commercial auto on vehicles the business owns. Read the national Hired and non-owned auto guide.

Michigan Requirements

RequirementDetails
Identify who owns or registers the vehicleSeparate vehicles owned or registered by the employer from employee-owned and hired vehicles when asking who handles Michigan PIP benefits. 1

What to Watch for in Michigan

  • The employer-vehicle PIP rule has a narrow ownership trigger

    Michigan Compiled Laws §500.3114(3) applies when an employee, the employee’s spouse or a relative domiciled in the same household is injured while occupying a motor vehicle owned or registered by the employer. Benefits to which the employee is entitled come from the insurer of that furnished vehicle. The subsection does not say that a vehicle merely rented by the employer or owned by an employee meets this trigger. 1

  • PIP priority is not third-party HNOA liability coverage

    Section 500.3114 concerns personal-protection benefits after bodily injury. A PIP claim and a claim that the business or driver is legally liable to another person are different questions. Ask for the actual HNOA policy’s insured-person, covered-auto and defense wording; do not use this first-party priority rule as proof of any liability protection. 1

  • The injured employee’s PIP benefit level may depend on policy choices

    Michigan’s no-fault reform allows eligible named insureds to make choices about PIP medical coverage, including limits or exclusions under the statutory conditions. Section 3114 sends an employee claim to the employer-furnished vehicle’s insurer only for benefits the employee is entitled to. Confirm the available benefit level and election on the relevant policy rather than assuming every employee receives the same PIP limit. 2,1

Who Regulates Insurance in Michigan

Michigan Department of Insurance and Financial Services

The Michigan Department of Insurance and Financial Services licenses agents, agencies and companies, supervises insurance business, and helps resolve complaints. You can use its state lookup or complaint service to check a license or raise an insurance issue. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 2.5% combined surplus-lines tax and regulatory fee on premium when Michigan is the insured's home state Michigan's Property and Casualty Guaranty Association is funded by insurers authorized to transact in the state; an insurer procured solely under Chapter 19 is expressly not considered authorized for that chapter. The surplus-lines policy must carry a notice that the insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. 6,7,8

Providers With Documented State Licenses

These providers publish a national listing for Hired and non-owned auto; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Michigan. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. 11

Questions to Ask Before You Buy in Michigan

  1. Is each work-use vehicle owned or registered by the employer, hired under a rental agreement, or employee-owned?
  2. For an employee injured in an employer-furnished vehicle, which PIP policy and benefit level apply?
  3. Separately, does the HNOA policy insure the company, the employee, or both for a third-party liability claim?
  4. Do rental or employee-owned vehicle terms affect insured status, priority or defense under the actual HNOA policy?

Hired And Non-Owned Auto in Michigan: FAQ

Does Michigan’s employer-vehicle PIP priority make a rented car a covered HNOA vehicle? 1

No. Section 500.3114(3) addresses PIP benefits when the vehicle is owned or registered by the employer. HNOA liability coverage must be determined from the business policy and its definitions. 1

Does the employee receive the same PIP amount in every employer vehicle? 1,2

Not necessarily. Section 3114 ties the priority to benefits the employee is entitled to, and Michigan law permits certain PIP coverage elections. Check the applicable policy and elections. 1,2

Hired And Non-Owned Auto in Other States

Other Coverage in Michigan

Sources

  1. MCL 500.3114, Persons entitled to PIP benefits; priority. Michigan Legislature; Subsections (1), (3) and (4); current law retrieved 2026-09-28; section history through 2019 amendment. Accessed 2026-09-28.
  2. MCL 500.3107c, Personal protection insurance benefits; coverage levels. Michigan Legislature; Subsections governing election of PIP medical benefit limits referenced by MCL 500.3114(1); current law retrieved 2026-09-28. Accessed 2026-09-28.
  3. Department of Insurance and Financial Services. Department of Insurance and Financial Services; Official regulator and insurance oversight. Accessed 2026-09-28.
  4. Insurance License Lookup. Department of Insurance and Financial Services; State-designated producer/company search. Accessed 2026-09-28.
  5. File an Insurance Complaint. Department of Insurance and Financial Services; State complaint process and contact. Accessed 2026-09-28.
  6. Surplus Lines Licensee: Filing the Surplus Lines Taxes. Michigan Department of Insurance and Financial Services; DIFS current filing page: Michigan-home-state placements taxed at 2.5% combined tax and regulatory fee; separate fees charged to insured are not included in premium tax base. Accessed 2026-09-28.
  7. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.7911(1)-(2), 500.7921(b): association membership tied to insurer authorized to transact; insurer procured solely under Chapter 19 is expressly not authorized for guaranty chapter. Accessed 2026-09-28.
  8. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.1922 requires policy notice that insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. Accessed 2026-09-28.
  9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  10. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  11. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  12. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  13. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  14. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  15. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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