Does My Health Insurance Cover Auto Accidents Michigan?

Many drivers in Michigan wonder, “Does my health insurance cover auto accidents Michigan?” Generally, yes, your health insurance will perhaps pay for accident-related costs in Michigan. But it depends on some situations as well. So, understanding the answer from every aspect is very crucial since it is a matter of your financial well-being. You probably know there are only 12 no-fault states in the United States and Michigan is one of them. This is why Michigan’s unique no-fault insurance laws complicate how health and auto insurance work together. 
 
In Michigan, Personal Injury Protection (PIP) is a mandatory auto insurance policy that covers medical expenses regardless of who caused the accident. However, the extent to which your health insurance covers car accident-related injuries in Michigan can vary. In this article, we’ll extensively discuss whether your health insurance pays for car-related accidents in Michigan or not. 

First Let’s Understand Michigan’s Auto Insurance System

As we said, Michigan has a unique no-fault auto insurance system. This means your car insurance provider will pay for the accident-related damages no matter who is at fault. However, Michigan’s no-fault system has undergone major evolution.

The no-fault system in Michigan began on October 1, 1973. It aimed to reduce lawsuits and speed up payments. Besides, this system provided unlimited medical benefits and wage loss compensation. In the 1990s, costs began to rise, driven by increasing medical expenses and fraudulent claims. So, the auto lawmakers called for reforms to control expenses and maintain the affordability of auto insurance. The 2000s saw more reforms such as limiting PIP benefits, implementing fee schedules for medical services, and improving fraud prevention.

In May 2019, Michigan lawmakers passed a comprehensive no-fault reform package. This brought significant changes to the state’s auto insurance system. It became effective on July 1, 2020. According to this legislation, the drivers of Great Lake State can choose their level of PIP coverage, ranging from unlimited to lower limits.

With that being said, PIP insurance coverage is now very crucial in Michigan. It covers your medical bills, lost wages, and rehabilitation. All drivers must have PIP. Besides, the other required coverage includes Property Protection Insurance (PPI) and Residual Liability Insurance.

Learn More: How to Find Cheap Car Insurance in Michigan?

Does Your Health Insurance Cover Auto Accidents in Michigan? 

Knowing how your health insurance works after an auto accident in Michigan is important. Michigan has a unique no-fault insurance system. This means your car insurance, not your health insurance, usually pays for your medical bills after an accident. However, your health insurance can also cover car accident-related damages, but it often serves as secondary coverage. It is auto insurance Personal Injury Protection (PIP) primarily pays for medical expenses related to car accidents. In some cases, your health insurance can also be helpful. If you have Qualified Health Coverage (QHC) in Michigan, you can choose less PIP coverage. However, health insurance might not provide other compensations such as lost wages, physical therapy, and psychiatric care which are usually offered by PIP Medical Coverage.

A very important thing you should remember here is that you can choose between coordinated and non-coordinated policies for your auto and health insurance. These terms describe how your health insurance interacts with your car insurance’s PIP coverage. It also decides who will pay first after an accident in Michigan. 

In coordinated coverage, your auto insurance and health insurance work together to cover medical expenses. In this case, your health insurance will pay first. Once its benefits exceed the limit, your auto insurance comes in, becomes the secondary payer, and covers the remaining costs.

In a non-coordinated coverage policy, both auto and health insurance operate independently. If you own this policy, your auto insurance will pay you first. However, you can claim benefits from both your PIP and health insurance without coordination. The benefit of an uncoordinated policy is the more comprehensive coverage since both insurances can pay for medical expenses.

Related Article: Does Auto Insurance Cover Drunk Driving Accidents?

When Does Health Insurance Cover Auto Accident? 

Health Insurance can help with medical bills from auto accidents in certain situations. Here are some situations:

1. After PIP Coverage Is Exhausted: Generally, in Michigan, Personal Injury Protection (PIP) is the primary coverage for auto accidents. PIP pays for your medical bills first. But if your PIP medical benefits run out, your health insurance covers the remaining costs.
2. No-Emergency Medical Care: PIP actually covers emergency medical care. If you need follow-up visits, physical therapy, or other non-emergency care, your health insurance can cover these services.
3. Qualified Health Coverage (QHC): If you have QHC, which meets certain standards, you can choose less PIP coverage. Your health insurance will cover some of the medical costs that PIP would usually cover.

When Health Insurance Doesn’t Cover Auto Accident Injuries? 

There are some situations where your health insurance might not cover your medical bills from an auto accident. Here are some examples:

1. Primary Coverage by PIP: If you have an uncoordinated no-fault auto policy in Michigan, your PIP will serve as the primary coverage for car accident-related injuries. This means your PIP will pay first and your health insurance won’t pay until your PIP benefits are exhausted.
2. Exclusion in Health Insurance Plan: Some health insurance plans might exclude coverage for auto accident injuries. That’s why it’s important to read your medical insurance plan. Check for any exclusions related to car accidents.
3. High Deductibles: If your health insurance plan has a high deductible, you may have to a lot out-of-pocket before your insurance starts to pay.  This can be expensive if your PIP coverage is low.
4. Exceeding Coverage Limits: Every insurance policy has coverage limits including your health or medical health insurance. If medical expenses resulting from a car accident surpass these limits, the insurance will not cover the additional costs.

Can I Seek Compensation from the At-fault Driver If My PIP Coverage Exceeds? 

In Michigan, a no-fault state, generally you cannot sue the at-fault party for any damages. As you know, you can only seek compensation from your own insurance through PIP coverage. However, if your medical bills exceed your PIP medical coverage limits, you can seek compensation from an at-fault driver filing a third-party lawsuit. An experienced auto attorney can help you with this process.

Besides, you can sue the at-fault driver for non-economic damages, such as pain and suffering, if your injuries meet certain thresholds. These include severe impairment of body functions, permanent serious disfigurement, or death. It is strongly advisable to consult with an attorney to understand your rights and options under Michigan's no-fault insurance system.

Is Health Insurance the Same as Auto No-Fault Insurance? 

Health insurance and auto no-fault insurance are not the same. Health insurance usually covers medical expenses for illness and non-auto-related injuries. In a state like Michigan, auto no-fault insurance, precisely Personal Injury Protection (PIP), covers medical expenses and other related costs from auto accidents, no matter who is responsible for the accident. 

In Michigan, no-fault auto insurance is mandatory and provides coverage for medical bills, lost wages, and rehabilitation costs due to car accidents. Health Insurance, on the other hand, is also required and regulated at the state and federal level. In some cases, it’s not fully mandatory in Michigan. For instance, if you are having a hard time with money or if it would cost more than 8% of your income to get coverage, you won’t be penalized for not having health insurance. However, even if you have one, doesn’t mean that it will entirely cover all the expenses resulting from car accidents. In short, both types of insurance serve different purposes and have distinct coverages.

Health Insurance Vs. Auto Insurance

Health and auto insurance are different from each other. Health insurance covers medical expenses for illness, injuries, and preventive care. It includes doctor visits, hospital stays, and medications. On the other hand, auto insurance policy provides different types of car insurance coverage for vehicle-related incidents which include damages to your car, liability for injuries to others, and medical expenses from auto accidents through Personal Injury Protection (PIP) or Medical Coverage (MedPay).

So, both car insurance and health insurance are different in terms of their purpose and coverage. Health insurance plans are for general health needs and auto insurance is specifically designed to help people financially for car-related incidents. Besides, health insurance focuses on medical care so you can call it Medical Insurance. On the flip side, an auto insurance policy includes repairing your cars, compensating other people through liability, and paying medical bills through PIP or MedPay.

Although both car insurance and health insurance are different, they have some similar traits. That means they can work together. So, if you ask, “Does health insurance cover car accident injuries in Michigan?” The answer is both yes and no. Because it depends on the situations which we have already discussed. This happens because health and auto insurance plans share common traits. Here are they:

• Both can cover medical expenses under different circumstances.
• Both aim to protect you from high costs.
• Both involve premiums and deductibles.

Filing a Claim After Car Accident in Michigan 

If you want to file a claim for auto insurance, contact your auto insurance company immediately. Tell them what happened. Provide every detail of the accidents and any injuries. If you have an insurance agent, you can talk to him/her as well. 

Once the claim is made, your carrier will assign you a unique claim number as well as a representative (Often called an adjuster) to handle your claim. When they are done investigating your claim, they will pay for the damages in an accident/collision. The payout depends on the car insurance coverage you own and the coverage limits.

In the case of a health insurance claim, things are almost similar. Just inform your health insurance provider about the accident as you did for an auto claim. Once the deal is settled, they may cover medical costs that are not fully covered by your PIP.

However, to make ensure a hassle-free claim process, keep thorough records of all the expenditures, treatments, and communications. This also helps avoid delays. Generally, Michigan law requires auto insurance companies to pay PIP claims including medical bills within 30 days. This is one of the reasons why is Michigan auto insurance so expensive.

Get the Best PIP Medical Benefits in Michigan with L.A. Insurance 

Select an insurance company that offers both cheap insurance in Michigan and a wide range of options if you want to purchase the best PIP medical coverage. You can count on L.A. Insurance, which is the most trusted and affordable insurance agency, whether you need PIP, comprehensive, collision, uninsured or underinsured motorists, or any other type of coverage. If you get into an accident in Michigan, our no-fault auto policy ensures you the easiest and fastest claim process with the highest coverage limit. It's been over 32 years since we started offering affordable full-coverage auto insurance to the residents in Michigan and six other states. This has earned us a badge of honor and trust all over the Great Lake State.

The Bottom Line

The bottom line is that your health insurance plan can cover accident-related medical costs in Michigan. However, Michigan no-fault auto insurance is primary. This means, your no-fault insurance coverage pays first. Your health insurance can fill gaps, but private health insurers may have exclusions. So, yes, to get the most benefits, PIP coverage is a suitable option in case of an accident. Unlike your medical insurance which only covers regular health-related issues, auto insurance pays for additional services like attendant care and other ongoing needs. Always check with your auto insurance agent. Plus, understanding auto law can be beneficial as well.

Frequently Asked Questions 

How Long Do I Have to Recover My Car Accidents Bills in Michigan? 

Ans: In Michigan, you typically have one year from the date of the accident to file a claim through your auto no-fault Personal Injury Protection. However, you have three years if you want to sue for pain and suffering compensation, and other financial damages. Please note that these durations may vary by state and your carrier. So, it’s better if you consult an auto insurance agent for precise details.

Do I Need Health Insurance If I Already Have Mandatory Car Insurance? 

Ans: Both health and auto insurance serve different purposes. So, yes, you still need health insurance even if you have mandatory car insurance. While car insurance generally covers accident and collision-related medical and vehicle repair costs, health insurance covers other medical needs that do not necessarily need to be accident-related (e.g., regular check-ups and treatments). Moreover, having both provides more comprehensive coverage and ensures you’re protected in all health situations.

What Are the Six PIP Medical Coverage Levels Available in Michigan? 

Ans: According to Michigan’s New Auto Insurance Law, there are six medical coverage levels for auto insurance. They are unlimited coverage, PIP medical opt-out, $500,000, $250,000, $250,000 with PIP medical exclusions, and up to $50,000 coverage. Each level provides different benefits. For instance, the $50,000 option offers the least coverage. On the other hand, an unlimited coverage plan provides the most. Choosing the right level of coverage depends on your personal needs.