One of the significant changes brought by Michigan's no-fault reform is the option for drivers to select different medical benefit levels under their Personal Injury Protection (PIP) coverage. These choices can have substantial consequences in the event of an accident.
As of July 1, 2020, drivers can opt for varying levels of PIP coverage, and in some cases, coordinate their auto insurance with their standard health insurance. Coordinated policies mean that your health insurance pays first for accident-related medical expenses, potentially reducing your auto insurance premiums. However, it's crucial to understand the differences in coverage between auto no-fault insurance and standard health insurance.
Coverage Comparison: Auto No-Fault vs. Standard Health Insurance
Service | Auto No-Fault | Standard Health Insurance |
Alternative Pain Management (e.g., acupuncture) | Covered | Often not covered |
Attendant Care (assistance with care/supervision) | Covered 24/7 as long as needed | Limited; typically short-term and subject to policy terms |
Case Management Services | Covered | Rarely covered |
Durable Medical Equipment (walkers, wheelchairs, etc.) | Covered | Covered, but may require co-pays or deductibles |
Guardianship or Conservatorship Costs | Covered | Not covered |
Home Modifications for Accessibility | Covered | Rarely covered |
Long-Term Care/Custodial Care | Covered 24/7 if needed | Limited; often not covered beyond short-term rehabilitation |
Massage Therapy | Covered | Often not covered |
Occupational Therapy | Covered | Covered, but may have visit limits and co-pays |
Physical, Speech, and Other Outpatient Therapies | Covered | Covered, but may have visit limits and co-pays |
Post-Acute Care/Subacute Rehabilitation | Covered 100% as long as needed | Limited; often capped at a certain number of days |
Replacement Services (homemaker services, personal care, meal assistance, etc.) | Covered up to three years at $20/day | Not covered |
Residential Treatment Programs | Covered | Rarely covered |
Specialty Assistive Devices (computers, assistive electronics, communication devices, fitness equipment) | Covered | Limited coverage; often not covered |
Transportation Services (to and from medical appointments) | Covered | Rarely covered |
Vehicle Modifications (to accommodate wheelchairs, hand controls, etc.) | Covered | Not covered |
Wage Loss (if employed) | Covered | Not covered |
It's important to note that while standard health insurance can cover many medical expenses, it often does not provide the comprehensive benefits that auto no-fault insurance offers, especially for services related to long-term care, rehabilitation, and support services following an auto accident.
Before coordinating your auto insurance with your health insurance or selecting lower PIP coverage limits, consult with your insurance agent to understand the potential implications fully. For more information or personalized advice, feel free to contact Rathbun Insurance at 517-482-1316.
