The 3 Types of Collision Coverage

Collision coverage pays for repairs when your vehicle is damaged in an automobile accident. In the state of Michigan, No-Fault Insurance is required while Collision coverage is optional and sold with a deductible. A deductible is the amount you agree to pay towards the repair costs for your vehicle before your insurance company pays the rest.  The larger the deductible amount, the lower the premiums of your insurance.

There are three basic kinds of collision insurance to choose from: limited, standard and broad form.

  • Limited Collision pays only if you are not extensively at fault, and may or may not have a deductible.
  • Standard Collision pays for damages regardless of fault, with a deductible that always applies.
  • Broad Form Collision pays for damages regardless of fault, with a deductible that applies only if you are extensively at fault.

The following chart explains more clearly what you can receive with each type of collision coverage should your vehicle become damaged in an auto accident.

Type of Collision Coverage

NATURE OF ACCIDENT

You are MORE THAN 50% at fault

You are 50% OR LESS
at fault

No Collision Coverage Your insurance pays nothing. You are responsible for all repair costs for your vehicle. Your insurance pays nothing. You are responsible for all repair costs for your vehicle.
Limited Collision Coverage Your insurance pays nothing. You are responsible for all repair costs for your vehicle. Your insurance pays, you pay the deductible. Your insurance pays the cost of repairs over and above your deductible.
Standard Collision Coverage Your insurance pays, you pay the deductible. Your insurance pays the cost of repairs over and above your deductible. Your insurance pays, you pay the deductible. Your insurance pays the cost of repairs over and above your deductible.
Broad Form Collision Coverage Your insurance pays, you pay the deductible. Your insurance pays the cost of repairs over and above your deductible. Your insurance pays. You do not have to pay the deductible.

Additionally, if you are purchasing a vehicle, you may be required to have collision coverage on your vehicle. Remember, if you want insurance to pay for damages to your vehicle in case of an accident, you must buy the optional collision coverage.


For more information visit the articles published by the Michigan Department of Insurance and Financial Services:

Consumer Counselor – Insurance Information for Michigan Consumers
Your Guide to Automobile Insurance (32 Pages)

 

 

 

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