In many ways Michigan is a unique state when it comes to auto insurance. One of these ways is the different types of auto collision offered. Understanding these types of collision coverage can be of great value when you are shopping for auto insurance.
There are three types of Collison coverage you can purchase with your auto insurance in Michigan. The first, and most basic, coverage is called limited collision. Limited collision is offered in other states and, much like the name sounds, only provides limited coverage. Limited collision will only cover repairs to your vehicle if you are deemed to be not at fault in the accident. For example, if someone were to rear end you at a stop light, limited collision would cover the repairs of your vehicle less any deductible you carry on the policy. On the other hand if you were to run a stop sign and hit another car, limited collision would provide no coverage to repair your vehicle.
The second, and most common, type of collision is standard collision. Standard collision is very straight forward. If your vehicle is damaged in an accident you are responsible for your deductible regardless of who is at fault. To many this does not seem fair. The state of Michigan agreed, so they put a law into place called property damage buy back also known as mini tort. This law allows a not at fault party to collect up to $1000 from the at fault party to cover their deductible or repairs to their vehicle.
Many of you may ask; what happens if I do not know who hit my vehicle, do I still have to pay my deductible? With standard collision the answer is yes, but there is a third collision option where your deductible is waived if the accident is not your fault. This is called broad form collision. With broad form collision if you are deemed not at fault for an accident your deductible is waived. If you are at fault you will be responsible for paying your deductible. This coverage unique to the state of Michigan so when dealing with a company or representative outside of Michigan they may not understand how it works or applies to you.
If you have any questions on your current coverage or would like further information on the way different types of collision coverage work in Michigan, feel free to contact us a for a free review. We are local agents who have years of experience working with Michigan’s no fault insurance.