What a Coordinated Insurance Policy Means to You
Has your auto insurance agent ever offered you a coordinated insurance policy? Find out what that means, and will happen behind the scenes when an auto accident happens.
Michigan law requires every auto owner to maintain no-fault personal injury protection insurance. These policies cover all your medical expenses and three years of lost wages and attendant care costs. But because of everything they cover, no-fault policies can be expensive.
To save residents money, the Michigan No-Fault Act allows auto insurance companies to offer “coordinated insurance policies” at a discounted rate.
What is a Coordinated Insurance Policy?
A coordinated insurance policy saves you money on monthly premiums, and it saves your insurance company money by making someone else take the lead on your medical expenses. In an uncoordinated policy, your auto insurance provider is the go-to for 100% of your medical expenses. A coordinated policy moves the auto insurer down to second priority, after your medical insurance.
How Medical Providers Get Paid In a Coordinated Insurance Policy
After an auto accident, you could need thousands of dollars of medical treatment. With no-fault insurance, that money comes from your insurance provider, and not your pocket. But if your policy is coordinated with your medical insurance, your doctors’ billing gets more complicated.
1. The Medical Insurance Claim
The first step for a medical provider in a coordinate policy is to file a claim with your medical insurance. Most modern health insurance plans involve deductibles, co-pays, and co-insurance, so that means some portion of your doctor’s bills will still be due after the claim is paid.
2. Auto Insurance Claim
You and your medical providers can submit claims to your auto insurance provider for any medical expenses that aren’t covered by your insurance. In addition to the normal out-of-pocket costs, this could include specialists or facilities that are outside your health insurance network. Your auto insurance provider is required to pay all reasonably necessary medical expenses, and doesn’t get to choose who you see to treat your injuries. However, it may take a lawsuit to get the benefits you are entitled to.
3. Injured Party
If your auto insurance provider denies coverage, or if you settle for less than the total of all your medical expenses, it is possible that you could personally be responsible for your doctor’s bills. That’s why it is so important to talk to an auto accident attorney before accepting any funds from your auto insurance provider. An experienced car accident lawyer will be able to negotiate with the insurance companies and your medical providers to come to a resolution that is acceptable for everyone.
A coordinated insurance policy can save you money on annual premiums. But be sure you know what it means for you and your medical providers before you agree to the policy. If you were in an auto accident and have a coordinated insurance policy, contact Christensen Law today to find out how your benefits will get paid.