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Who pays your medical bills from a Michigan auto accident? | Michigan Auto Insurance

posted Jan 31, 2017, 12:54 PM by Jason Grubbs   [ updated Aug 9, 2018, 1:09 PM ]
Most people are, understandably, confused by no fault auto insurance in Michigan - particularly as it pertains to who pays their medical bills if they are injured in a car accident.

The law requires every Michigan auto insurance policy include personal injury protection (PIP) coverage, which provides several benefits related to injuries sustained in an auto accident.  Principal among PIP benefits is medical coverage that is unlimited in dollar amount and duration - in other words, if you're injured in an auto-related accident your medical expenses from that accident will be paid for as long as you require medical care.

Your auto policy can be set up to respond first for any auto-related medical expenses, which is known as "full" or "primary" PIP medical coverage.  Or, your auto policy can be set up to respond after other health insurance, which is known as "excess" or "coordinated" PIP medical coverage.

If your auto insurance is the secondary (excess) source of payment for any auto-related medical expenses the cost of your policy will be lower, reflecting that your auto insurer is expecting it will not have to pay first if you are injured in an auto-related accident.  With excess PIP your auto policy just covers any medical expenses your health insurance doesn't pay, such as deductibles and copayments.

The question of how to set up medical PIP coverage for your Michigan auto insurance policy involves first confirming whether your health insurance provides primary coverage for auto-related injuries.  While this has generally been the case it is becoming more common, as a cost saving option, for health insurance plans to exclude coverage for auto-related injuries.

Also, if you are covered by Medicaid or Medicare (even if you have supplemental coverage) your auto policy will need to provide primary medical PIP coverage, as both of those plans are designed to be payers of last resort - meaning, they both require any other available insurance (such as an auto policy) respond first.

Michigan PIP auto insurance