Michigan’s no-fault system gives insured drivers the opportunity to choose between a policy with coordinated or uncoordinated benefits. So why choose one over the other? To understand what may work best for you, it is helpful to know how a claim with each type of policy may play out after an accident.
The attorneys at Jay Trucks & Associates discuss the major differences between an auto insurance policy with coordinated benefits versus one that is uncoordinated.
If you have legal questions about how your auto insurance policy may impact your Michigan car accident claim, we welcome the opportunity to discuss the circumstances of your situation in a free legal consultation. There is no obligation to hire our services after this meeting, and since we take cases on contingency, you only pay our fees if we achieve a recovery for you.
The Difference Between Coordinated and Uncoordinated Insurance Coverage
The decision between coordinated and uncoordinated insurance coverage goes beyond the cost of whatever plan you choose. Your selection determines who pays first for any medical bills you incur after a car crash.
Here is a straightforward explanation of your two options:
Coordinated Benefits Policy
If you purchase a Michigan auto insurance policy with coordinated benefits, then you are coordinating your health care insurance to be the primary (first) payor for the medical costs sustained in a car crash.
A coordinated benefits insurance policy may initially appeal to some drivers because it costs less, but is this really a cheaper option in the long run?
Under a coordinated benefits car insurance plan, certain requirements from your health insurer may apply. For example, if you have an HMO healthcare plan, you must first exhaust the medical care provided under that plan before your no-fault auto insurance benefits will pay for anything. Why does this matter? There are two reasons this could become expensive:
- As a car crash victim, your injuries may require a specialist doctor outside of your health insurance network, but under an HMO plan, you cannot do this without paying more out of your own pocket.
- If your healthcare plan has lifetime coverage limits, and your car crash injuries are extensive, you run the risk of depleting those limits under a coordinated benefits auto insurance policy. If that happens, you may be stuck paying for the costs of future illnesses, surgeries or other unexpected medical costs on your own.
Uncoordinated Benefits Policy
If you have an uncoordinated car insurance policy, then your Michigan no-fault insurance is the primary payor after a car accident.
The benefit of an uncoordinated benefits policy is that after an accident, you are free to pursue medical care with any doctor of your choosing, as long as the treatment is related to your accident, necessary for your recovery and the costs are considered reasonable.
While this kind of auto insurance policy does cost more up front, the benefits may outweigh the expense.
Could Uncoordinated Benefits Help Me in a Liability Claim?
If you purchase an uncoordinated benefits policy, you do not have to deal with your health insurer at all. You only have to deal with your auto insurance carrier, so it is much simpler to pursue compensation for your injuries after a car crash claim. Additionally, you will not have to worry about the risk of exhausting your health insurance benefits.
Our Clare car crash lawyers have extensive knowledge of state law, and we are prepared to provide more details about how uncoordinated benefits may help you in a liability claim.
How an Attorney Can Benefit My Injury Claim
Contact Jay Trucks & Associates for legal help after a car accident caused by another’s negligence. If you suffered injuries and are considering whether you may have a car crash case, we are prepared to help.
Call our firm today to arrange for your free car accident consultation to learn more about how we may be able to assist you with your claim. We have helped injured victims in Michigan for more than 30 years and recovered hundreds of millions for our clients. If we represent you, we are prepared to fight for maximum compensation on your behalf.
Jay Trucks & Associates: (800) 762-8623