Michigan’s present auto insurance coverage regulation offers you auto insurance coverage that features limitless Private Harm Safety (PIP) medical protection to pay on your bills in case you are injured in an auto accident. The brand new auto insurance coverage regulation permits Michigan drivers to select from six ranges of PIP medical protection when a coverage is issued or renewed after July 1, 2020. The next PIP protection selections can be found to all Michigan drivers: limitless (present stage), $500,000 or $250,000. Further PIP protection selections can be found to Michigan drivers who meet sure standards; these extra protection selections are: restricted $250,000 with PIP exclusion(s), $50,000 or PIP medical opt-out.
IMPORTANT: Most well being plans don’t pay any advantages for the therapy of accidents or diseases obtained in or associated to an auto accident. Subsequently, the well being plan is not thought-about “certified well being protection” for functions of no-fault reform.
What’s the distinction between my auto coverage’s PIP medical protection and the medical protection supplied underneath most well being plans?
As summarized under, an auto coverage’s PIP protection covers considerably extra auto accident-related objects and companies than a gaggle well being plan. Observe: this abstract assumes limitless PIP protection applies.
Auto Coverage’s Limitless PIP Medical Protection
Typical Well being Plan Medical Protection
Covers all cheap and crucial auto accident-related medical bills
Covers most medical bills however does not cowl auto accident-related claims incurred by Michigan residents
Covers attendant care
Does not cowl attendant care
Covers rehabilitation, even previous the purpose by which additional progress is now not possible
Covers medically crucial rehabilitation however does not cowl auto accident-related rehabilitation for Michigan residents
Covers misplaced wages for as much as three years after the date of the accident
Does not cowl misplaced wages
Covers automobile or housing modifications
Does not cowl automobile or housing modifications
Covers some funeral expense advantages and survivor’s advantages which can be paid to the dependents of a coated particular person if accidents from an auto accident outcome of their dying
Does not cowl funeral bills and survivor’s advantages
Offers limitless medical protection for an individual’s lifetime
Well being plan protection ends when the person ceases to be eligible underneath the phrases of the plan (e.g., can’t return to work)
What doable dangers do I face if I determine to decide on an auto coverage possibility after July 1, 2020 that doesn’t present limitless PIP medical protection?
You might be answerable for paying all auto accident-related medical, rehabilitation or attendant care prices that aren’t coated underneath your auto coverage. Which means that as soon as your auto coverage has reached its PIP protection restrict (normally $250,000 or $500,000, relying on the coverage possibility chosen), you’ll possible be personally answerable for paying these bills.
BOTTOM LINE: To guard your self and your loved ones from monetary disaster within the occasion of an auto accident that causes severe accidents, you might be urged to buy limitless PIP protection on a major/uncoordinated foundation that may present complete, lifetime advantages for accident-related claims that might not be coated by your well being plan.
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