How Does Auto and Medical Insurance Coordinate After a Car Accident?

Q&A with Bob Giroux, Giroux Pappas Trial Attorneys

Michigan’s No-Fault insurance laws can be confusing — especially when health insurance, Medicare, and auto coverage overlap. Personal injury attorney Bob Giroux, with more than 30 years of trial experience, answers some of the most common questions Michigan drivers have about coordination of benefits and how it affects your medical bills after a crash.

---

Q: Bob, I got a note from my auto insurance company asking for a “Coordination of Benefits” letter from my health insurance provider. What is this — and should I send it?

A: This question comes up all the time — and it’s a good one. A Coordination of Benefits (COB) letter helps your auto insurer determine who pays first if you’re injured in an auto accident.

In Michigan, your auto and health insurance can be coordinated (working together) or uncoordinated (each acting separately). If your auto policy is coordinated, your health insurance pays first for medical treatment after a crash, and your auto insurance pays second for anything not covered. If it’s uncoordinated, your auto insurance pays first no matter what. When your auto carrier asks for a COB letter, they’re just verifying how your health plan handles accident-related bills. It’s fine to send it — but make sure you understand your policy first. The way your coverage is set up can affect how quickly your bills are paid and how much comes out of your pocket.

Q: What’s the difference between coordinated and uncoordinated coverage — and which is better?

A: It depends on your personal situation.

A coordinated policy usually has lower premiums because your health insurance takes the first responsibility for accident-related medical bills. The tradeoff is that you’ll be limited to your health plan’s rules — things like provider networks, deductibles, and co-pays.

An uncoordinated policy costs a bit more, but your auto insurer pays 100% of your allowable medical expenses under Michigan’s No-Fault law, without having to go through your health plan first. This often provides faster, broader coverage, especially if your health insurance has restrictions.

If you have a strong health plan and want to save on premiums, coordinated coverage can make sense. If you have a high deductible, limited network, or no health insurance at all, uncoordinated coverage may give you better protection.

The key is to review your specific situation before choosing — because once an accident happens, you can’t change how your benefits are coordinated.

Q: If I have Medicare, do I still need medical coverage on my auto policy?

A: This is one of the most important questions we hear. If you’re on Medicare, you need to be very careful with your auto policy.

Medicare does not cover auto accident injuries the same way your auto insurance does — and it may refuse to pay for certain treatment if you have no medical coverage on your auto policy.

For most drivers with Medicare, the safest option is to purchase at least some level of Personal Injury Protection (PIP) medical coverage on your auto policy. There are specific coordination rules for Medicare recipients under Michigan’s No-Fault reforms, and getting it wrong can lead to unpaid medical bills. If you’re unsure how your coverage lines up with Medicare, talk to a professional before you renew your policy. We’ve helped many clients untangle this issue after the fact — and it’s much better to get it right ahead of time.

Q: Can my auto insurance company deny benefits if my health insurer pays first?

A: They can’t deny benefits outright, but they can delay or limit payment if coverage details aren’t clear. That’s why coordination needs to be properly documented.

If your policy is coordinated and your health insurer pays first, your auto carrier should pay whatever is left — co-pays, deductibles, or treatments not covered by your health plan. But if there’s confusion about who’s responsible, you could find yourself caught between two insurers pointing fingers at each other.

That’s where having clear communication and documentation is critical. If you ever find your medical bills being denied or bounced around after an accident, it’s time to call an attorney who understands Michigan’s No-Fault system. At Giroux Pappas, we fight to make sure injured people don’t get stuck in the middle of insurance red tape.

Understanding your coverage after a car accident – we can help.

Have questions about your Michigan auto insurance coverage after a recent car accident?
Contact Giroux Pappas Trial Attorneys today. Our team has decades of experience helping injured people navigate Michigan’s complex No-Fault laws — and we’re here to help you get the benefits and justice you deserve. 248-531-8665