Will your auto insurance company be the first to pay your medical bills if you’re injured in a car accident? Or will your health insurance provider be the first to pay?
Before the Michigan no-fault law was established in 1973, if you had medical bills resulting from car accident injuries, you had to sue the other driver to cover those bills. But under the no-fault system, instead of bringing a claim against the at-fault driver, each person — whether or not they were at fault for the crash — turns to their own auto insurance for coverage.
But take note: coverage under your own auto insurance policy depends on whether you purchased a coordinated no-fault policy or an uncoordinated no-fault policy. Whether your policy is coordinated or uncoordinated determines which insurance — auto or health — has to pay first.
For those with coordinated policies, you will first look to your health insurance provider when you file a claim for no-fault benefits. If your health insurance refuses to cover services for one reason or another, you would then turn to your auto insurer for coverage under your no-fault benefits. Coordinated policies are less expensive than uncoordinated coverage, and therefore most Michigan motorists have them.
If you have an uncoordinated auto insurance policy, while you will pay a higher premium, your auto insurance is the primary insurer. This is true even if benefits may be payable under your health insurance. We highly recommend that, when given the choice by your auto insurance company (and you must be given the choice), you purchase uncoordinated auto insurance, if you can afford it.
Now that health insurance is a requirement, it’s a good time to check and see what type of auto insurance policy you have. Do you have a coordinated policy or an uncoordinated policy?
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- Coordinated vs. Uncoordinated Michigan Auto No-Fault Insurance Policies
- Michigan No-Fault PIP Benefits
- Michigan Auto No-Fault Law