Michigan No-Fault Insurance: Coordinated vs. Uncoordinated Coverage

Michigan no-fault insurance policies come in two main varieties: policies with coordinated benefits and policies with uncoordinated benefits. Purchasing the wrong sort of policy could result in increased difficulty getting benefits you’re entitled to if you’re involved in an auto accident in Michigan. 

If you look at the names of the two types of insurance, you might think that “coordinated benefits” would be more desirable than “uncoordinated benefits.” After all, things are always better if they are “coordinated,” right? Not in this case.

The Detroit auto accident attorneys at Sachs Waldman, P.C. advise clients to purchase Michigan no-fault insurance with uncoordinated benefits. Here’s why:

Why Michigan No-Fault Insurance with “Uncoordinated Benefits” is Preferred

To understand why insurance with uncoordinated benefits is better, you have to understand what the terms mean.

Coordinated Benefits — Policies with coordinated benefits require that your primary health care insurance pay for your medical costs first. The auto insurance policy only covers costs not covered by your primary insurance. This may not seem to be a big deal, especially since coordinated-benefits policies usually cost less. However, it is not uncommon for primary health insurance policies and Michigan no-fault insurance policies to have conflicting language that creates confusion over which insurance company is supposed to pay for various costs. In the end, the injury victim often gets cheated out of benefits that should be paid.

Uncoordinated Benefits — Policies with uncoordinated benefits pay injury costs for an auto accident in Michigan regardless of any other health insurance the injury victim has. Even if a person’s primary health insurance pays some costs initially, the auto insurance company reimburses those costs. Policies with uncoordinated benefits are more expensive, but if you’re involved in an accident there is usually much less confusion and hassle about getting medical costs paid. 

If you don’t know what kind of insurance you have, you should be able to find out by reading the policy or calling your insurance agent. If you have trouble figuring out whether you have appropriate coverage or are considering buying a new policy, it’s a good idea to have your policy reviewed by a Detroit personal injury attorney. An experienced and qualified Detroit injury attorney can help you assess whether your policy is adequate.

An experienced attorney can also help you get benefits you’re entitled to if you’ve been in an auto accident in Michigan and your Michigan no-fault insurance company refuses to pay benefits because you have a coordinated-benefits policy. 

If you’ve been in an auto accident in Michigan, the personal injury firm of Sachs Waldman, P.C., can assist in getting you the benefits you’re entitled to for your no-fault auto accident – even if you have a policy with coordinated benefits. Call our Detroit personal injury attorneys’ office at 1-800-638-6722 to schedule a free consultation.