Recovery May Be Limited
Unfortunately, your no-fault insurance policy may not fully cover all of your losses, especially if your injuries were serious. For example, no-fault policies do not compensate policy-holders for non-economic damages caused by your injuries.
Non-economic damages can include:
- Emotional distress and mental trauma
- Loss of enjoyment of life
- Permanent disfigurement or disability
In cases involving relatively minor injuries, the non-availability of non-economic damages may not be an issue. However, if your injuries are serious or even catastrophic, you deserve to recover for more than just your financial losses.
In addition, if you selected a limited coverage policy after July 2, 2020, and you suffer catastrophic injuries, your medical bills and other losses might exceed your $250,000 or $500,000 limit. In this situation, it is critical to have an attorney evaluate your options to recover for your remaining losses.
How Will I Know Which Pip Coverage To Choose
Determining which options youre eligible for depends on whether you and your family carry qualified health coverage and how well youre covered. Remember, as outlined in the PIP choices above, your health insurance is responsible for any expenses above your PIP coverage limits. If you or any of your family members dont have qualified health coverage, choose enough PIP coverage to protect against paying for injuries from an accident out of your own pocket. Also, pay attention to your health insurance deductible. A high deductible could result in unwanted out-of-pocket expenses for injuries that arent covered under a lower limit PIP option.
For more information on Michigan auto insurance laws, call to speak with one of our licensed representatives. Or get an auto insurance quote online to see your coverage options.
Contact A Michigan Car Accident Lawyer Today
Do you have concerns that your health insurance will not cover your injuries after a Michigan car crash? Dont get stuck with the bill. To ensure the at-fault party pays and for help pursuing all the compensation you deserve, reach out to an experienced Michigan car accident lawyer at Davis Injury Lawyers, PLLC.
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Liability Coverage Requirements In Michigan
is legally required in Michigan. It pays for bodily injuries and property damage of those that you harm in an at-fault accident. It also pays for the injured partys lost wages and pain and suffering. Your liability coverage never pays for your injuries or damages to your property.
With Michigan being a no-fault state, the liability coverage required on your policy mainly serves to provide coverage if you are involved in an at-fault accident out of state. However, it can also come into play inside state lines in extreme cases, such as if you cause death or permanent disability or disfigurement. It is important to note that property damage liability does not cover damage caused within the state of Michigan.
How Do I Know If I Have Gaps In My Coverage
We recommend starting a conversation with your local, independent agent to identify potential gaps in your coverage that may need to be corrected, especially if any of the scenarios above describe your household. Your agent will be able to help you understand your unique coverage needs. If your agent recommends personal umbrella insurance, information on what an umbrella policy covers can be found here.
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Were Committed To Helping Our Customers Navigate Michigan Auto Insurance Reform
Michigan auto insurance reform offers drivers more choices, as well as changes to their auto insurance. While some changes will be phased in over time, most went into effect July 2, 2020. At Frankenmuth Insurance, we want to help our customers understand how their insurance coverage may be impacted.
What If My Medical Expenses Are More Than The Pip Coverage Level I Choose
In the event you choose a PIP coverage level less than your medical expenses related to your accident, you will be responsible to pay them. This could be through your health insurance, if it provides coverage for auto accidents. In the event you did not cause the accident we can include your unpaid medical expenses in the lawsuit against the person or persons whom caused the accident.
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How Does Personal Injury Protection Work In Michigan
Find Cheap Michigan Auto Insurance Quotes
As of July 2, 2020, auto insurance reform to Michigan’s personal injury protection requirements went into effect and may help drivers save on car insurance. Details of this measure, including potential savings, are outlined here.
In Michigan, all drivers must carry personal injury protection, sometimes called “no-fault” insurance. It’s meant to cover a driver’s medical bills after a car accident, no matter who was at fault.
Do You Use Health Insurance Or Medpay/pip After An Accident
After an accident, you typically use MedPay or PIP coverage first. In a fault state like West Virginia or Ohio, medical expenses will go through the at-fault drivers auto insurance, then MedPay coverage, then health insurance. The order of payment will look a bit different in no-fault states, like Michigan or New Jersey.
A no-fault state means that car accident victims must seek payment for medical treatment, rehabilitation, surgeries, and other costs through their own auto insurance policy, regardless of who was at fault. In this case, medical expenses will go through the accident victims PIP coverage before reaching the health insurance company.
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Does Medicaid Provide Coordinated Coverage For Car Accidents
No. Drivers cannot coordinate their No-Fault PIP medical benefits coverage with Medicaid because it is prohibited by the federal Medicaid Secondary Payer law, which provides that Medicaid can cover auto accident injuries but cannot be made the primary payer to pay for accident-related medical bills when No-Fault has the legal liability to pay.
Will I Be Able To Change My Personal Injury Protection Benefits As Soon As The Law Is In Effect
We encourage Frankenmuth Insurance policyholders to revise their policy at their next renewal after July 2, 2020. However, you may work with your agent to sign a new PIP coverage selection form to request policy updates earlier. If you are a Frankenmuth Insurance policyholder, you will be issued a short-term policy in this case to maintain your current personal auto or commercial auto policy effective and expiration dates.
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What Are Medicaid Liens For Pain And Suffering And Excess Medical Benefits
A Medicaid lien on a car accident victims recovery of pain and suffering compensation and/or excess medical benefits is usually how Medicaid ensures that it will be reimbursed for any payments made on the injury victims behalf for car accident-related medical expenses.
From a car accident victims perspective, these so-called Medicaid super liens are horrible. This means Medicaid will cover auto accident injuries but they force victims to use most or all of their compensation from a trial verdict or a settlement to pay them back. As a result, the car accident victim is left with a vastly reduced settlement recovery, or with nothing at all for all the pain and all the injuries he or she has suffered.
In contrast, when a car accident victim is covered by an auto insurance policy with unlimited No-Fault PIP medical benefits coverage, reimbursement through liens on the victims third-party recovery will not occur because the No-Fault law prohibits an auto insurance company from seeking reimbursement for monies it paid out in No-Fault benefits. and )
Does Health Insurance Cover Car Accidents
Yes, health insurance will pay for medical expenses after a car accident, according to the limits of your health insurance policy. For example, if you have a high-deductible plan that requires you to pay the first $8,000 of your medical expenses out-of-pocket, you will be held responsible for that $8,000 deductible, even if you werent at fault for the accident.
However, there are several types of car insurance that are designed to help you pay your medical costs, including your deductibles, copays, and out-of-network expenses, that should be billed first, before your health insurance coverage. Some of those car insurance coverages are:
Ready to shop car insurance?
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What Do I Need To Know If I Drive An Employer
If you drive a vehicle provided by your employer, typically, youll first pursue coverage through your employers insurance company that covers the vehicle. The next order of priority is your own personal auto policy, then that of your spouse or resident relative, then finally the Michigan Assigned Claims Plan . Or, if you drive a transportation company vehicle, you will generally pursue coverage through the insurance company that covers your transportation companys vehicle, unless specifically excluded.
Why Havent I Realized Immediate Savings On My Auto Insurance Premium Now That No
While the new law was passed in Spring 2019, most of the significant reform wont go into effect until July 2020, and even more changes will happen in July 2021. So, the first cost reduction you see will be after July 2, 2020, and after you have selected new PIP and bodily injury limits. Its also important to note that savings may appear less significant than you expect since PIP coverage is just one portion of your auto insurance policy. We encourage you to reach out to your local, independent agent prior to July 2020 to discuss the new coverage options that will be available to you.
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Does Medicare Cover Auto Accident Injuries Under The New No
Yes. According to Insurance Bulletin 2020-05-INS, which the Michigan Insurance Commissioner issued just this past Monday, February 10, 2020. In the Bulletin, the Insurance Commissioner addresses the following questions regarding Medicare and No-Fault in Michigan:
- Will Medicare cover auto accident-related injuries for a crash victim who opted out of No-Fault PIP medical benefits coverage under MCL 500.3107d?
- Will Medicare cover auto accident-related injuries for a crash victim who has reached his or her selected coverage limit for No-Fault PIP medical benefits under MCL 500.3107c?
To both questions, the Insurance Commissioner answered yes:
- Medicare will pay for Medicare-covered services to enrollees who opt out of PIP medical benefits, are injured in an automobile accident, and have no other available coverage.
- The new law also allows Medicare enrollees to purchase lower than unlimited levels of PIP medical coverage: $500,000 or $250,000 per person per accident. If a Medicare enrollee is injured in an accident and exhausts his or her PIP medical limits, and has no other available coverage, Medicare will pay for Medicare-covered services . . .
It will be interesting to see how the following observations by the Michigan Supreme Court in John Hancock Property & Casualty Insurance v. Blue Cross Blue Shield play out under the provisions of the new No-Fault law:
My Auto Insurance Premiums Actually Went Up After The New No
Many factors impact your total auto insurance premium. If you made a change to your auto policy, such as adding a driver, buying a new car, moving to another home or if you were involved in an accident, these factors could have impacted your premium. The auto insurance premiums that Michigan drivers are paying today were approved by the Department of Insurance and Financial Services in Spring 2019, before the new no-fault law was passed. If you have questions about your premium, we recommend contacting your local, independent agent.
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Why Adhering To Michigans Car Insurance Requirements Is Important
Even if the prices are higher than average, carrying car insurance in Michigan is required. Not all coverages are legally mandated, but adding coverage or increasing your current limits is recommended for most drivers in order to further protect assets. However, if youre worried about an increase in your premiums, it may be time to shop for cheaper coverage. The Zebra is a great place to from the nations top carriers.
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How Will Attendant Care Be Impacted By The New Law
- Weekly Hour LimitationsAs of July 1, 2020, your auto insurance company will only be required to reimburse you for up to 56 hours per week of attendant care provided by relatives, household members, and any individuals the injured party had a business or social relationship with before the accident.
- Attendant Care Rider OptionIf you choose a PIP coverage level of $500,000 $250,000 or $50,000, you have the option to purchase an attendant care rider. The law states that your auto insurance company has no obligation to offer a rider providing for more than 56 hours per week. If purchased, payments made by your auto insurance company to your attendant care providers would not be applied to your selected coverage level.
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When Do I Sign Up For Medicare
The initial enrollment period spans three months before to three months after your 65th birthday. You can sign up for Part A any time during or after your initial enrollment period. If you sign up for Part B after this period, and you dont have group coverage through your or your spouses employer, you will face a late enrollment penalty. If you are covered under a group plan, youll be able to enroll in Medicare up to 8 months after that coverage ends.
You can or in person at your local Social Security office.
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What Are The Pip Medical Coverage Options For Medicaid Recipients
Michigan residents who are enrolled in Medicaid can choose PIP medical coverage with a $50,000 per person per accident limit.
To qualify for this option, the policy holders spouse and resident relatives must have their own qualified health care coverage that covers auto accident injuries. This coverage can be provided by Medicaid, private insurance or a separate No-Fault policy that includes PIP medical coverage.
If you are unsure of which Personal Injury Protection medical benefits are right for you and your family, consult a knowledgeable insurance agent.
And, if you or a loved one is injured in an accident, call us. Our experienced and compassionate legal team is ready to fight for your rights to the compensation you deserve.
Michigan No-Fault law is complicated, but finding the right accident lawyer is simple.
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How Much Does Personal Injury Protection Cost In Michigan
Since PIP in Michigan is unlimited, it does come with a hefty price tag. Therefore, we recommend comparing policies from multiple insurers to find the best quotes for coverage.
Furthermore, because Michigan doesn’t allow drivers to sue for the cost of car repairs, you likely need collision coverage. This could drive prices higher, so we took a look at a few sample quotes.
|Health care option|
|30-year-old single man||$422|
Coordinating your health insurance with your PIP does save you a little money, but it seems to be negligible overall, at least for our sample drivers.
Changes For Michigan Drivers
The reformed Michigan no-fault insurance law lets Michigan drivers choose the Personal Injury Protection option that best meets their unique needs and budget. Previously, it was mandatory for drivers to carry unlimited PIP coverage. As of July 2, 2020, drivers can choose from six different PIP options:
Additionally, these changes went into effect July 2, 2020:
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How Does Health Insurance Work With Coordinated No
As mentioned above, if a driver coordinates No-Fault auto insurance coverage with his or her health insurance, then the medical insurance will be considered the primary payer and, thus, will be the first to pay for any of the drivers crash-related medical care and treatment in the event the driver is .
With coordinated coverage, No-Fault would step in as the secondary payer to pay for accident-related medical bills if the health insurance coverage for car accident injuries had been exhausted and/or the services or treatment in question are not covered by health insurance.
There is one important exception to this general rule in which a driver cannot coordinate his or her health and No-Fault coverage: If the medical insurance plan is a self-funded ERISA plan. Specifically, there will be no coordination between a self-funded and No-Fault coverage if:
- A drivers medical insurance is provided by his or her employer
- The employers medical insurance plan is a self-funded ERISA plan and
- The employers self-funded ERISA plan contains an unambiguous coordination of benefits clause that clearly states that the plan will not be primary for an employees crash-related medical expenses