Out-of-State College Drivers: What to Know About Auto Insurance (With a Special Focus on Michigan)

It’s the time of year when college students start heading back after winter break. As a parent, you are probably experiencing a full range of emotions. Once the hugs are done and the car is packed, you might find yourself with a little time to spare. This may be a great time to check on something that is easily overlooked. Is your student’s auto insurance valid if they are heading out of state with a car? The short answer is…it depends!  Let’s go over what you need to know before the semester gets rolling.

 

Does Your Wisconsin Auto Policy Cover Your Student Out of State?

In many cases, yes. If your student is using your car, still part of your household, a full-time student and listed on your Wisconsin auto policy, coverage will generally follow them while they are away at school. But that policy still has to meet the insurance laws of the state where the car is being kept and used. Some states require different types of coverage than what’s standard here in Wisconsin. Certain states such as Michigan, Florida, Hawaii, and others have no-fault systems that might make your current policy fall short.

Before we dive too deep, it helps to understand the difference between at-fault and no-fault insurance. Wisconsin is an at-fault state, which means the owner of the at-fault vehicle is generally responsible for the injuries and damages. In no-fault states, such as Michigan, each person’s own insurance typically covers their medical expenses and lost wages through Personal Injury Protection (PIP), no matter who caused the accident. Property damage will still likely be the responsibility of the at-fault driver or vehicle owner, even in no-fault states.

 

A Closer Look at Michigan’s Insurance Rules:

Michigan is a popular destination for college-bound students from Wisconsin, but it’s also one of the most complicated states when it comes to auto insurance. Unlike Wisconsin, which follows a fault-based system, Michigan has a no-fault insurance structure that comes with its own set of strict requirements.

 If your student is attending school in Michigan and bringing a vehicle with them, especially one owned by your family and still registered in Wisconsin, you’ll want to pay very close attention. Under Michigan law, if a non-resident is driving a vehicle in Michigan for more than 30 days in a calendar year, that vehicle must be insured with a Michigan no-fault auto policy. That requirement applies even if the vehicle is still titled and registered in another state. This is a detail that tends to fly under the radar. It’s easy to assume that your Wisconsin policy will work just fine, when in reality, it may leave your student underinsured or even technically uninsured under Michigan law. This isn’t just about avoiding tickets or fines. If your student is involved in a car accident and doesn’t carry Michigan-compliant no-fault coverage, they could lose access to critical benefits like medical expense coverage and wage loss reimbursement. In more serious cases, you (the vehicle owner) could be held legally liable, and the student can also face serious consequences.

 Additionally, Michigan also has separate rules regarding vehicle registration for non-residents. If your student is keeping a vehicle in the state for more than 90 days, the state may expect the vehicle to be registered in Michigan in addition to being insured there. These are not small details. Taking the time to review this with your insurance agent can make a big difference in making sure your student is legally compliant and fully protected while they’re away at school.

 

What Wisconsin Families Should Do

If your student is taking a vehicle to college out of state, here are some steps you can take now to make sure your insurance coverage is solid:

1. Location matters - If your vehicle is not kept at your house, even if the car is still in Wisconsin but parked at an apartment, on-campus lot, or a relative's house, your agent/insurance company needs to know.
2. Specifically ask if your current policy meets the laws in the state where your student will be. If it does not, update the coverage or explore a policy that complies with that state’s rules.
3. If the car is being registered in another state, consider getting a policy written under that state’s laws. This is especially important for no-fault states.
4. If you have an umbrella, be sure the policy lists all vehicles owned by you and any drivers and household members of driving age.
5. If your student is not taking a car to school, ask about a student-away-at-school discount. Many companies offer this if the student is more than 100 miles from home and does not have regular access to a vehicle.

 

Final Thoughts

Auto insurance is probably not the first thing on your list when your student is getting ready to head back to campus. But if they are bringing a car, especially to a state like Michigan, it is worth making sure your current coverage still fits. Taking the time now to check the garaging address and review state-specific insurance rules can prevent bigger issues later. It is much easier to make a quick policy adjustment than to deal with a denied claim or legal problem down the road. If you are not sure what steps to take, give us a call. We are happy to walk through it with you and help make sure your student is set for the road ahead.

 

Sources

Experian: https://www.experian.com/blogs/ask-experian/what-states-have-no-fault-insurance

MI Dept of Insurance and Financial Services: https://www.michigan.gov/difs/news-and-outreach/faq/insurance/info-purchasing-auto-insurance

National Association of Insurance Commissioners: model-law-chart-pa-30-compulsory-motor-vehicle-insurance.pdf

Progressive– Understanding No-Fault States

Wisconsin Office of the Commissioner of Insurance (OCI), Consumer’s Guide to Auto Insurance, PI-057 (R 10/2024)

 

Author:

Jessica Dellemann is a licensed Wisconsin insurance agent and co-owner of Insurance Service Center – De Pere, LLC. Together with her business partner, Carrie Baeten, and their team of agents and staff, they help individuals, families, and small businesses across Wisconsin find smart, practical insurance solutions.

With over 30 years in the industry and professional designations including CIC (Certified Insurance Counselor) and CPRM (Certified Personal Risk Manager), Jessica brings deep industry knowledge and a strong focus on client education. Outside the office, she enjoys traveling and spending time with family and friends.