Did You Know That Your Health Insurance Can Affect Your Auto Insurance?

Wednesday April 20, 2022

Grace Peabody, CIC, Partner | gpeabody@peabodyinc.com

Under Michigan’s new auto insurance law, drivers can choose from six different Personal Injury Protection (PIP) medical coverage levels when they buy or renew their auto insurance, which covers medical bills and other expenses if you are injured in an auto accident. For people who have Qualified Health Coverage (QHC), two options allow you to remove PIP medical coverage for yourself and/or eligible household members.

To count as QHC, your health insurance policy must not exclude or limit coverage for auto accident injuries and must have an individual deductible of $6,000 or less. Medicare Parts A and B or Medicare Advantage also count as QHC, but please note VA Health Benefits do not count as QHC. If someone in your household does not have PIP medical coverage and has a change in their health insurance, you must A.C.T.:

A – Ask your auto insurance company or agent about your PIP medical coverage choice and find out if you need QHC to maintain your current selection.
C – Contact your health insurer to determine if your new policy counts as QHC and to get an updated QHC letter.
T –Tell your auto insurance company immediately if you lose your QHC. You have 30 days to obtain replacement health insurance or make a different PIP medical selection, or you risk not having medical coverage for yourself and your family in the event of a crash.

If you are interested in learning more or have questions, visit our Auto Reform page or give us a call: (810) 629-1504  

You can also visit Michigan.gov/AutoInsurance or call the Michigan Department of Insurance and Financial Services Monday through Friday 8 a.m. to 5 p.m. at 833-ASK-DIFS (275-3437).