Michigan is somewhat unique when it comes to auto insurance in more ways than our Unlimited Medical benefits.
When purchasing collision physical damage protection for your vehicles, you have 3 options that some agents may not discuss with you, at least we often hear from new clients that no-one ever told them of the choices.
Broad form collision is what we write the most of. Broad form states that if you are ‘less than 50%’ at fault in an accident, your collision deductible will be waived. This form will cost you more than the other 2 options since there is a chance that you won’t have to pay anything to help in the cost of repairs to your vehicle.
The second most common form of collision would be Regular or Standard Collision. These are the same, but some companies refer to it as Standard and some as Regular; but the way it works is the same. When chosen, the coverage stipulates that you must pay your chosen deductible ‘regardless’ of fault. So, whether you hit someone else or they run into you and are totally to blame, you will still be responsible for paying the deductible first to have your vehicle repaired.
The third option; Limited Collision, is the form that I have seen the least in my career. Limited comes with an automatic deductible and states that IF you are ‘more than 50% at fault’, they will NOT pay for any repairs to your vehicle. If someone else is more than 50% at fault, they will pay for repairs minus your deductible, which is commonly $400 or $500.
The premiums vary depending on the form of collision type that you choose, with Broad Form being the most expensive, then Standard/Regular, and then the least costly is the Limited collision.
As with any of your auto insurance questions, we are here to help, so don’t hesitate to contact us for more information.