A recent ruling by the Michigan Court of Appeals has clarified that bobtail insurance policies, which cover truck drivers when they’re driving without cargo, cannot limit mandatory personal injury protection (PIP) coverage to just the vehicles listed on a policy. Instead, the court confirmed that this coverage must follow the person insured, no matter what vehicle they’re driving.
The case involves Termaine Turner, who owns a 2008 Peterbilt tractor and had a bobtail policy with Acceptance Indemnity Insurance Company. Turner was injured in May 2021 while driving a friend’s Nissan Altima in Las Vegas. When he tried to claim PIP benefits from Acceptance, the company denied coverage because the policy only named his Peterbilt tractor, not the Nissan.
A trial court had sided with Acceptance, saying Turner had a limited policy protecting only the listed truck during non-business use. However, the appeals court disagreed. They pointed to Michigan’s no-fault insurance law, which requires PIP coverage to be tied to the insured person, not just a particular vehicle. The court also referred to a 2022 decision involving Hartford Accident & Indemnity Company, which ruled similarly that insurers can’t avoid mandatory PIP coverage by restricting it to specific vehicles.
Acceptance tried to use an older, unpublished decision to support its stance, but the appeals court emphasized that published rulings like the Hartford case carry more weight. Additionally, that older case involved a person who had other insurance coverage available, unlike Turner.
The court made it clear that because Acceptance sold Turner a policy with PIP coverage included, they can’t add language that conflicts with state law to limit that coverage. This means Acceptance must update its policies to comply with legal requirements. The case will return to the lower court for further action.
For insurers, this ruling sends a strong message. Even with specialized commercial policies like bobtail coverage, mandatory PIP benefits must cover the insured person across different vehicles, not just the ones listed in their policy. This may lead companies to review and adjust their policy language to make sure they’re following Michigan’s laws.