Do you have to prove your health insurance coverage in order to have car insurance?

[Mackenzie Click-Mickelson]

Thank you for your helpful information. Because DH and I have switched insurances in the past couple of years (retirement related) I'm just surprised they have never asked about the info before.

You're welcome

Honestly each insurance company is structured differently but I know the company I worked for New Business had a trigger (that's what we called it) for the health insurance card to be scanned into the system used for retainment of documents but other transactions and renewals at times would send a trigger as well.

So it's possible that AAA has internal rules regarding when a document is needed and when it is not. I know it would be nice information though to find out what caused the requirement just so you know for your peace of mind.

 

[Kitty 34]

You're welcome

Honestly each insurance company is structured differently but I know the company I worked for New Business had a trigger (that's what we called it) for the health insurance card to be scanned into the system used for retainment of documents but other transactions and renewals at times would send a trigger as well.

So it's possible that AAA has internal rules regarding when a document is needed and when it is not. I know it would be nice information though to find out what caused the requirement just so you know for your peace of mind.

I agree with you. MY DH just went on Medicare this past summer which probably prompted their "survey". Thanks, again, for your info.

 

[barkley]

You're from Michigan (if I read your profile correctly). Michigan does have Health Insurance requirements for auto insurance and is part of the reason rates can be very high up there since they have a unique structure. That requirement is unique to Michigan as far as the states I dealt with. You're getting a reduction in premium basically though AAA may actually have their rates structured so that it is an outright discount.

This was some information I found online as it's been a while since I've had to deal personally with Michigan on that.
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Basically you're shifting the immediate and initial risk of medical coverage away from your auto insurance company to your health insurance company and because of this your auto insurance company is giving you a reduction in premium. If you want them to take on the whole risk of your medical expenses your auto insurance company will take that into consideration when it comes to your rates.

I would def. contact AAA though since I'm rusty on in-depth auto insurance stuff...I would always recommend contacting and discussing insurance stuff directly with your company anyways

so is PIP strictly optional in Michigan, and if it's not-
how do the health insurance companies deal with this kind of option from the auto insurers? I ask b/c every health insurance policy I've ever had contained language in their contracts that said that if my injuries were due to the negligence/actions of others then I had to cooperate with the health insurance company to get reimbursement for everything they paid out on (and could not opt out).

a couple of years ago I was in a car accident. I have private health insurance, medicare and PIP coverage on my auto policy. both private insurance and medicare immediately filed claims against my PIP for every penny paid out (it was triggered by the nature of the injuries as reported by the hospital in their billing). my auto carrier would have loved to have had my health insurers pay up to their limits first but my health insurers sure wouldn't have gone for it.

 

[scrapquitler]

We've had AAA for over 20 years and I never remember having to discuss our health insurance policies with them so I was confused when my DH got a letter stating the following:

"Your auto ins premium is based in part on your health insurance. To ensure you are properly covered please complete the survey below......"

The survey continues to ask yes or no do we even have insurance; our policy #s, are we employed, etc etc.

Finally if we fail to answer this survey will result in the removal of our discounts. (what discounts??)

I know I can call AAA which we will do tomorrow but just want your thoughts on this.

ETA.......I'm from mid-Michigan.

I've never heard of that before.

 

[Kitty 34]

I've never heard of that before.

Me neither, thus the thread.

 

[Mizzoufan]

Me neither, thus the thread.

what did they say when you called

 

[jenrose66]

We've had AAA for over 20 years and I never remember having to discuss our health insurance policies with them so I was confused when my DH got a letter stating the following:

"Your auto ins premium is based in part on your health insurance. To ensure you are properly covered please complete the survey below......"

The survey continues to ask yes or no do we even have insurance; our policy #s, are we employed, etc etc.

Finally if we fail to answer this survey will result in the removal of our discounts. (what discounts??)

I know I can call AAA which we will do tomorrow but just want your thoughts on this.

ETA.......I'm from mid-Michigan.

It’s something new. You can have coordinated or non coordinated coverage. Meaning you can choose to have health insurance pay first for your hospital bills in the event of car accident injuries or you choose to have your auto insurance pay first (which makes auto premium higher).

You need to be careful because if you work for a company that self funds their health plans they may specify that they refuse to pay first in the event of a car accident.

 

[Mackenzie Click-Mickelson]

It’s something new. You can have coordinated or non coordinated coverage. Meaning you can choose to have health insurance pay first for your hospital bills in the event of car accident injuries or you choose to have your auto insurance pay first (which makes auto premium higher).

You need to be careful because if you work for a company that self funds their health plans they may specify that they refuse to pay first in the event of a car accident.

It's not new.

 

[Mackenzie Click-Mickelson]

so is PIP strictly optional in Michigan, and if it's not-
how do the health insurance companies deal with this kind of option from the auto insurers? I ask b/c every health insurance policy I've ever had contained language in their contracts that said that if my injuries were due to the negligence/actions of others then I had to cooperate with the health insurance company to get reimbursement for everything they paid out on (and could not opt out).

a couple of years ago I was in a car accident. I have private health insurance, medicare and PIP coverage on my auto policy. both private insurance and medicare immediately filed claims against my PIP for every penny paid out (it was triggered by the nature of the injuries as reported by the hospital in their billing). my auto carrier would have loved to have had my health insurers pay up to their limits first but my health insurers sure wouldn't have gone for it.

No, PIP is a required coverage in Michigan and is part of your liability coverage.

As far as the rest I was on the personal lines side and while I have some claims knowledge because of what I dealt with it is still limited so I don't know how the process goes when you're in an accident in Michigan and the health insurance aspect.

 

[ols386]

I’m in SE Michigan and have State Farm Car Insurance, and have never had to do this. I’m not sure what one has to do with the other.

 

[Colleen27]

Yes. I'm also from MI, though, and that's widely acknowledged as part of the problem with our auto insurance costs here... If you don't have private insurance, your auto rates are higher because the auto insurance is the sole insurance for accident-related claims. Medicaid/CHIPs (not sure about medicare) do not pay first and will not qualify for coordinated coverage, which means people low-income enough to have medicaid or have their kids on a CHIPs plan are expected to pay significantly more (25-30%, from what I've seen) for their car insurance. And that contributes directly to the epidemic levels of uninsured drivers here, which in turn drives up the rates for everyone.

 

[Mackenzie Click-Mickelson]

Yes. I'm also from MI, though, and that's widely acknowledged as part of the problem with our auto insurance costs here... If you don't have private insurance, your auto rates are higher because the auto insurance is the sole insurance for accident-related claims. Medicaid/CHIPs (not sure about medicare) do not pay first and will not qualify for coordinated coverage, which means people low-income enough to have medicaid or have their kids on a CHIPs plan are expected to pay significantly more (25-30%, from what I've seen) for their car insurance. And that contributes directly to the epidemic levels of uninsured drivers here, which in turn drives up the rates for everyone.

Thanks for more information on what doesn't qualify on the health insurance.

One thing we used to say was it was a vicious circle up there because the structure and then the rates can/do force people to go uninsured which only compounds the issue making it worse.

 

[Klayfish]

No, PIP is a required coverage in Michigan and is part of your liability coverage.

As far as the rest I was on the personal lines side and while I have some claims knowledge because of what I dealt with it is still limited so I don't know how the process goes when you're in an accident in Michigan and the health insurance aspect.

It's been a few years since I've had to deal with MI, but PIP is a first party coverage (so it's separate from your liability coverage). I think it's unlimited benefits too, if I recall. Yes, if you're injured in an auto accident, you have to go to your own carrier for the bills. Your health insurance will not pay, as it falls to auto coverage, regardless of liability. Michigan is unique because auto damage also falls under this no-fault approach...your own company pays for damage to your car, regardless of fault (with a few exceptions). MI is weird.

 

[Colleen27]

It's been a few years since I've had to deal with MI, but PIP is a first party coverage (so it's separate from your liability coverage). I think it's unlimited benefits too, if I recall. Yes, if you're injured in an auto accident, you have to go to your own carrier for the bills. Your health insurance will not pay, as it falls to auto coverage, regardless of liability. Michigan is unique because auto damage also falls under this no-fault approach...your own company pays for damage to your car, regardless of fault (with a few exceptions). MI is weird.

Yes, and unlike health insurers, auto insurers cannot negotiate provider fees or limit their reimbursements. So not only is the coverage unlimited, it is unlimited at full "retail" price with no shopping around or haggling for lower bills. A non-profit investigative publication did some research recently on medical bills and found that providers who "specialize" in injury claims bill at several hundred percent higher than other providers for the same services - $5000+ for an MRI that a cash or Blue Cross patient would pay less than $1000 for, as an example.

 

[Klayfish]

Yes, and unlike health insurers, auto insurers cannot negotiate provider fees or limit their reimbursements. So not only is the coverage unlimited, it is unlimited at full "retail" price with no shopping around or haggling for lower bills. A non-profit investigative publication did some research recently on medical bills and found that providers who "specialize" in injury claims bill at several hundred percent higher than other providers for the same services - $5000+ for an MRI that a cash or Blue Cross patient would pay less than $1000 for, as an example.

No doubt about it. That kind of thing happens all over the country, but Michigans' true no-fault laws make it so that questionable billing, tx, etc...is the primary revenue stream for plaintiff attorneys and those types of treatment facilities.