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The No-Fault Clause and Excess Benefits


Everybody in Michigan is now aware of the No-Fault Clause and what it means. 

You have also probably read it in previous articles so we will no longer look into that. Let us look at the existence of the No-Fault Clause and what the “coordinated” or “excess” medical benefits have to do with your insurance.

As we have discussed in previous articles, there are some instances where the no-fault law in Michigan has already made things easier for everyone. Every person who drives in the state of Michigan already has their own choice when it comes to choosing the insurance policy that they would be paying for.

Every person in Michigan now has the option to have primary medical benefits on their insurance policies which are called primary medical PIP or personal injury protection benefits. When you get a PIP, you will receive medical benefits from the insurance company. 

On the other hand, with a coordinated no-fault policy, the primary payer of your insurance policy will always be your health policy and not the no-fault policy provider. 

The Situations

Now that we have the introduction out of the way as a refresher of the previous articles let us look at the specific situations that would determine who ultimately pays for your medical bills in case of a car accident in Michigan.

I was laid off from work. Who ultimately pays for my medical bills?

Due to the pandemic and the current economic crisis that we are in, there are a lot of people who have been laid off from work or terminated. One way or another there are a lot of people who lost their jobs and because their jobs are the source of their health insurance they also lose their health insurance. If this is your situation you should know that if you are laid off from work and lose your health insurance related to work it is your auto insurance company that ultimately pays for your medical bills.

In this situation, the auto insurance company becomes the primary payer of your medical bills.

What is the effect of this on your auto insurance policy?

If you paid the auto insurance policy premium religiously they are required to make sure that you and your medical bills are properly taken care of as that is their responsibility. However, as we have discussed in previous articles your no-fault auto insurance company is only secondary to your health insurance.

In the state of Michigan where there is the concept of coordinated benefits your no-fault auto insurance company no longer expects to be the primary payer of your medical bills in case of an injury caused by a car collision or car crash in Michigan. When you have coordinated benefits you are required to inform a no-fault auto insurance company of any changes that would happen to the primary payer.

In case that you are laid off and you failed to inform your auto insurance company they will still ultimately pay your medical bills but the medical deductible would increase. Generally, every person would only take a medical deductible of $0 up to 300 dollars for the medical lifetime deductible if the policy is set up correctly. 

However, if the policy is not set up correctly the amount will increase up to a thousand dollars. This situation is not ideal especially if you have been laid off or terminated from work and you have been in an accident, that is just bad luck.

My doctor keeps sending my medical bills to Medicare or Medicaid when they should be sent to my no-fault insurer. Who ultimately pays for my medical bills?

In some instances, some doctors or medical practitioners send their bills to Medicare or Medicaid instead of sending them to the no-fault insurer. In this situation, it is your insurance provider that ultimately pays for your medical bills.

However, you will have to pay substantial fines and penalties relating to this so getting a lawyer to handle this is your best way of not paying the penalties.

In Case of Doubt

In case of doubt, keep in mind that it is your no-fault insurance provider who would ultimately pay for your medical bills. As long as you get unlimited or no-limit coverage, you should be properly covered at a time when you need the best kind of coverage for your health and safety.

Contact Your Lawyer Today

If you have an insurance claim that you need assistance with, you should contact us today. A lawyer can help you get started with your claim. A lawyer at Haque Legal will see to it that your needs are met from beginning to the end of the proceedings. You are always in good hands with Haque Legal and what it has to offer.


The article that you have read is based on general applications of the law. It is not legal advice and it is not to be construed as any legal consultation with the firm. No client-attorney relationship is created when you read the articles we have provided.

Let us help you out

If you are having trouble with filing an insurance claim, call us immediately. If you have any problem with the law or are seeking justice and truth, our numbers are standing by to take your call.

The post The No-Fault Clause and Excess Benefits appeared first on Haque Legal.

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