When you review your auto insurance policy, you may see the term “PIP” or Personal Injury Protection. Every Michigan auto policy must have medical coverage - personal injury protection - the portion that makes the auto policy “no fault.” There are two types of medical coverage, excess and full.
Excess medical coverage is the option selected if the named insured, spouse, or resident relatives have health insurance that will pay primary for auto related injuries. If you choose this option and are involved in an auto accident, your health insurance will pay first for any claims (hospital visits, injury treatments). The auto policy would then cover any remaining medical expenses, only related to the accident.
Full medical applies if the named insured, spouse, or resident relatives have a health insurance plan that does not pay primary for auto related medical services. The option will increase your auto insurance premium since the company is taking on a higher risk. If you are in an auto accident, the auto insurance company, not your health insurance, will pay for medical expenses.
It is important to note when making this decision for your auto policy that not every health insurance carrier will provide coverage automatically when the medical treatment is related to an auto accident. Please contact your agent, benefits coordinator, or HR department to confirm what your health plan will do to avoid headaches in the future. If the setting on your auto policy is incorrect (i.e. health insurance does not pay primary and you have excess PIP for the auto), it will not only cause claims issues but the auto company may impose a penalty or charge a deductible amount.
Education is key! If you need assistance with asking the right questions please call our office.