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Types of Collision Insurance Coverage in Michigan

If you are a driver with an active auto insurance coverage in Michigan and you get concerned in an auto accident, according to no-fault insurance law, you will have covered by the insurance company. All the costs that are relevant to the other party’s injuries and damages, including damages to surrounded parked cars.

And that’s all. You won’t get paid for your car’s damages, so it’s really up to you to find a way to fix or replace your vehicle as cheaply as you can.

However, there is always an option to save some money proactively. You can purchase collision coverage for your car. It’s not needed by the state, it’s optional, and it’s the best way to protect your vehicle from damage costs resulting from an auto crash, even if it’s your fault.

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Types of Collision Coverage

There are 3 different types of Collision Coverage you can choose for your car according to your needs, they are the standard or regular, the broadened, and the limited collision. With other sorts of auto insurance, collision coverage may not be extended if you are at fault for an accident.

There are some things you should understand about collision insurance coverage, for instance, the collision will only pay for repairs up to the fair market value, so you can’t ask for more than usual and get the benefit of it.

The collision will come along a deductible amount that you must pay, which might potentially get you a lower premium cost. It can also be required by a financial institution in case your car is under lien or currently leased.
  1. Standard collision coverage will service or replace your automobile regardless of whose fault is. But the limit or the losses covered will be up to the sale price of the vehicle minus the deductible.

  2. Broad or broadened collision coverage is nearly identical to standard version offering an added benefit that the standard collision coverage isn’t. You only have to pay the deductible included if you are more than fifty percent responsible for the accident. If your fault is less than 50%, your deductible is waived. That’s the only difference from a standard collision.

  3. Limited collision coverage is usually not selected by Michigan drivers, and there is a logical explanation for that. If you aren't over 50% at fault in an auto accident, the insurance will cover the expense of the damage repairs after the deductible is paid, but if you are over 50% at fault, then you get nothing. The limited insurance won’t settle for anything, in other words, you are totally exposed to losing your vehicle in case you cause an accident.
Furthermore, no bank or financing institutions will accept limited collision coverage to fund you for a vehicle purchase.

Broadened collision is usually more expensive than the standard type of crash. But again, it depends on the vehicle you drive and the total coverage you have selected. However, it’s better to choose either standard or broadened coverage instead of limited.

In case you find it hard to decide which type to purchase, you can always use our site to compare and make the most suitable for the choice of your needs.
Ryan Daniel
Ryan Daniel Ryan Daniel is a car enthusiast. Since owning his first BMW at a young age, he has loved the automotive world even more.