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After a car accident in Michigan, one of the most pressing concerns for injured victims is how they will pay for their medical treatment. The state’s no-fault insurance system can be complex and confusing, leaving many people unsure of their rights and options.
Michigan’s No-Fault Insurance System
Under Michigan’s no-fault insurance system, every vehicle registered in Michigan must be covered by an insurance policy that includes PIP (personal injury protection) coverage. This policy pays for lost wages, medical expenses, and other benefits for the vehicle’s driver, family, and passengers if they are hurt in a car wreck, regardless of who was at fault.
When you are injured in a car accident in Michigan, you will typically turn to your own PIP coverage first to pay for your medical bills and related expenses. This is known as “first-party benefits.”
Personal Injury Protection (PIP) Coverage
As of July 2020, Michigan law allows drivers to choose from six different levels of PIP coverage:
- Unlimited coverage
- $500,000 limit
- $250,000 limit
- $250,000 limit with PIP medical exclusions
- $50,000 limit (for Medicaid-eligible individuals)
- Opt-out (for Medicare-eligible individuals)
The coverage level you choose will determine how much your insurer will pay your medical expenses after a collision. If your medical bills exceed your PIP coverage limit, you may need to turn to other sources of payment, such as your health insurance or personal savings.
Coordinated vs. Uncoordinated PIP Coverage
When you purchase your auto insurance policy, you will also have the option to choose between coordinated and uncoordinated PIP coverage. However, your insurance carrier is not required to offer you this choice.
If you choose coordinated coverage, your health insurance will be the primary payer for your accident-related medical bills, and your PIP coverage will be secondary. This means that your health insurance will pay first, and your PIP coverage will cover any remaining expenses. This choice may reduce your insurance premiums.
If you choose uncoordinated coverage, your PIP coverage will be the primary payer for your accident-related medical bills, and your health insurance will be secondary. This means that your PIP coverage will pay first, and your health insurance will cover any remaining expenses.
If you don’t choose between these options, you will have uncoordinated coverage by default.
Other Sources of Payment for Medical Bills
If you choose less than unlimited PIP coverage, you may not be enough to cover all of your accident-related medical expenses. If this happens, you may need to explore other options for payment, such as Medicaid or Medicare or your own personal savings or loans.
This is why we recommend all our clients choose unlimited PIP coverage. An experienced personal injury attorney can explain your options and pursue the compensation you need to cover your medical bills and other accident-related expenses.
The Role of Fault in Michigan Car Accident Cases
Although Michigan is a no-fault state, the issue of fault can still play a role in certain car accident cases. In cases where your injuries meet certain thresholds, such as permanent disfigurement, serious impairment of a body function, or death, you may be able to step outside the no-fault system and file a personal injury lawsuit against the at-fault driver.
In these cases, you may be able to recover additional compensation for your medical bills, lost wages, pain and suffering, and other damages. However, proving fault and liability in a car accident case can be challenging, and it’s essential to work with an experienced attorney who can fight for your rights.
The Importance of Seeking Legal Guidance
Navigating the complex world of no-fault insurance and medical bill payment after a car accident can be hard, especially when you are dealing with injuries and financial stress. Working with a well-seasoned personal injury attorney can increase your chances of getting the full compensation you deserve and that your medical bills are paid in a timely manner.
At Davis Law Center, our compassionate and skilled lawyers have extensive experience handling car accident cases and helping clients seek the compensation they need for their medical expenses and other losses. Our initial consultations are free. We work on a contingency fee basis so you won’t owe any attorney fees unless we recover compensation for you. Contact our office today.
Davis Law Center: your trusted partner for personal injury accident cases. Serving Detroit, Farmington Hills, Southfield, Macon County, Wayne County, Oakland County, and all of Michigan.