Michigan Auto Collision Deductible

Does Michigan require Collision coverage auto insurance

In Michigan, No-Fault is required by law for your car but collision coverage is not required unless you finance or lease your car. Michigan no-fault coverage will protect you in an accident if you injure somebody or cause damage to someone’s property in your vehicle.  Michigan no-fault does not pay for damage to your car or the other person’s car if you are in an accident.  Because Michigan is not a tort state, the other party’s insurance will not pay for damage to your vehicle.  If you want to have your vehicle protected from an accident, you have to purchase collision coverage.

Three types of Michigan Collision coverage

Collision pays to repair or replace your vehicle if it is damaged in an accident. There are three 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 more than 50% at fault.
  • Limited collision pays 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 you have to pay out-of-pocket before the insurance company is 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 $1000 from the other driver under the Mini-tort provision of the Michigan No-fault system.  Click the highlighted link to find out how to file a Michigan Mini-tort Claim.

Michigan collision coverage expert

If you need a Michigan Auto insurance agent to help explain collision and other types of coverages, click the link to get a  Michigan insurance quote.