3 Types of Collision in Michigan Auto Insurance

What you need to know about collision coverage in Michigan auto insurance

In Michigan No-Fault is required by law for your car. Michigan no-fault coverage will protect you in an accident if you injure somebody or cause damage to someones property with your car.  Michigan no-fault does not pay for damage to your car or the other persons car if you are in an accident.  Because Michigan is not a tort state the other parties insurance will not pay for damage to your car.  If you want to have your car protected from an accident you have to purchase collision coverage with your insurance policy.

Collision coverage

Collision pays to repair or replace your vehicle if it is damage in an accident. There are 3 types of collision coverage available in Michigan. This coverage will pay for the damages as long as they don’t exceed your car’s actual cash value. (Actual cash value is the car’s original purchase price minus the amount it has depreciated)

• Standard collision pays for damages to your auto regardless of fault; you will be responsible for paying a deductible whether you are a fault or not at fault.
• Broad form collision pays for damages to your auto regardless of fault; you will only have to pay the deductible if you are found to be more than 50% at fault.
• Limited Collision pays only if you are less than 50% at fault a deductible may or may not apply depending on if you have a deductible with this option.  If you are more than 50% at fault nothing is paid.

A deductible is the amount of a loss that an you have to pay out-of-pocket before insurance company will be responsible for repairs.  Usually it will be as low as $50 and can go as high as $1000.  With most insurance companies the higher the deductible that you take the lower the cost your collision coverage will be.

Under Michigan No-Fault you may be able to collect up to $500 from the other driver under the mini-tort provision of the no-fault law. Go to our site under claim information to see how to how to file a mini-tort claim.

Michigan collision coverage expert

If you need a Michigan Auto insurance agent to help explain collision and other type of coverages call 248-888-1134 or click the link to get a quote online from a  .