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3 Types of Collision Coverage in Michigan

Michigan law requires you to have no-fault automobile insurance coverage on your car. However, what many drivers do not realize is that no-fault insurance pays only for injuries resulting from an automobile accident (regardless of who is at fault), and for vehicle damage up to a certain amount.

In order to ensure you have coverage for damage to your car in case of an auto accident in Michigan, you must buy collision coverage. Our Detroit auto accident attorneys highly recommend that drivers look into the different types of collision coverages offered, especially if you want the insurance company to pay for damages.

There are three types of collision coverage available to Michigan drivers. Depending on the nature of the accident and the type of collision coverage purchased will determine what your insurance company is liable for. Below is a breakdown of the three types of collision coverage and what your insurance company will pay for.

  1. Limited Collision Coverage
    1. If you are MORE THAN 50% at fault - your insurance company is not liable to pay for your vehicle damage. You are responsible for the costs of repair.
    2. If you are 50% or LESS at fault - your insurance company is liable to pay for the cost of repairs to your car. If you have a chosen deductible, you must pay the deductible and your insurance company will pay for any repair costs above and beyond your deductible.
  2. Standard Collision Coverage
    1. If you are MORE THAN 50% at fault - you must pay the deductible chosen and your insurance company will pay for any vehicle damage above and beyond your deductible.
    2. If you are 50% or LESS at fault – you must pay the deductible chosen and your insurance company will pay for any vehicle damage above and beyond your deductible.
  3. Broad Form Collision Coverage
    1. If you are MORE THAN 50% at fault – you must pay the deductible chosen and your insurance company will pay for any vehicle damage above and beyond your deductible.
    2. If you are 50% or LESS at fault - your insurance company is liable for ALL costs related to vehicle damage in the car accident.

No one expects to be involved in an accident but understanding what type of coverage you have is key to ensure you are protected, or at least protected to the level of coverage you want. Not everyone will choose to have collision coverage and under state law, however it is important to be educated on what options are available to you. In fact, your insurance adjuster is required to offer you collision coverage at the time of application and give you a clear written explanation of the different types available to you.

If you have recently been involved in an automobile accident in Michigan and need help understanding what coverages you are entitled to, including no-fault benefits, call Goodman Acker P.C. today at (248) 793-2010. We are happy to answer any questions that you may have. For over 30 years, our trial lawyers have been helping auto accident victims in Michigan. We can help you too. Call now to learn your rights and get the advice you need at no cost and at no obligation.