When auto insurance customers in Michigan buy no-fault insurance, the company will probably offer what is known as coordinated insurance. What this means is that if an accident occurs, the no-fault coverage is coordinated with any other insurance coverage available to the injured person.
For example, if the injured person has medical insurance in place that will pay for those types of expenses, they will be picked up by the health insurance carrier first. Once the limit for the health insurance plan has been reached, the no-fault carrier would pay for the balance of these expenses, up to the policy limit.
The advantage to the customer is that a policy that coordinates coverage with other insurance plans is that it is less expensive than one that pays out benefits first. To find out whether it would be worthwhile to buy a policy that doesn’t coordinate with other plans, a Michigan resident should look at quotes from several insurance companies.
Each person will need to decide for themselves whether they want to pay higher rates for a no-fault policy that pays benefits first. If the health insurance plan in place has a relatively low lifetime limit, it may make sense to consider one of these plans. Rates vary between companies and shopping around may mean savings on this type of coverage.