Prior to the new auto insurance reform law that went into effect on July 1, 2020, your personal injury protection (PIP) coverage provided unlimited benefits. The rising costs of continuing this level of coverage led lawmakers to implement a change. This law is why you have the ability to choose between various levels of PIP coverage. However, it also means that if your PIP benefits are exhausted before you fully recover from a car crash, you could actually end up paying more out of pocket.
Jay Trucks talks about what the new priority payment rules are following a car accident and how your medical costs are paid once your PIP limits are exhausted.
Having an attorney represent you after a car crash can help to make sure you recover the maximum amount of compensation available to you if you suffered serious injuries. Contact our law firm today to learn more – it costs you nothing to learn about your legal options.
At a high level, Michigan PIP benefits, which are paid through your own car insurance company after a car crash, provide the following no-fault benefits – up to the limits of your policy:
This process is confusing for many Michigan policyholders. To provide a more accurate answer, you need to be able to answer the following questions:
The priority rules for who pays for your medical costs – and when – also changed under the new auto reform insurance law. Regardless of the order that applies in your situation, it is important that you file your no-fault auto insurance claim immediately after the accident – or at least within your providers deadline.
Here is what you need to know about the current priority rules:
If you get laid off from work and lose your health insurance, your no-fault benefits immediately apply and your auto insurance provider would pay first. However, in this situation, they may charge you a higher medical deductible than what you would have paid if you still had health insurance.
At Jay Trucks, we strongly recommend uncoordinated benefits. In this situation, your payment priority rules after an accident apply as follows:
Neither Medicare nor Medicaid are meant to be used to cover medical costs after an accident. Under federal law, both are classified as secondary payers. Sometimes an insurance agent may ask an accident victim to tell them if they have other insurance that may apply. However, in this situation, it is important to understand that neither of these options should be mentioned to your insurer as another type of health coverage.
If your medical costs do end up being paid by either Medicare or Medicaid, you will be required to pay that money back. A bigger issue is that it may also mean that your auto insurance carrier or health insurance provider are not paying when they should be. This error is something you should immediately discuss with your attorney.
Once your PIP and other insurance options are depleted, you may be eligible to pursue additional damages that are not available or part of your no-fault insurance benefits. These additional damages include:
In order to pursue a liability claim for these non-economic damages, however, you must first meet the state’s injury threshold. If you are unsure whether you may be eligible for any of these additional damages, you can speak with one of our experienced attorneys for a free case assessment.
Pursuing compensation for your injuries, whether through your no-fault benefits or through a liability claim, our Grand Rapids car insurance lawyers are prepared to help. We have the resources and staff to investigate and determine all potential sources of compensation to help you obtain a maximum recovery after an accident caused by a negligent driver.
Find out whether you may have a valid case in the free legal consultation we offer. There is no pressure to hire our services after this free meeting, so there is no risk in getting the information you need. If we do represent you, there is nothing to pay upfront. We do not get paid until your case concludes – and only if we recovered compensation for you.
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