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Buying Car Insurance

3 Types of Collision Coverage

Information on broad, standard and limited collision coverages, and how each can help you pay for your car damage

Collision coverage will help pay your repair costs for accident-related car or truck damage.

It is an optional coverage and it is not required by law. But it’s a relatively certain and comprehensive way of paying for accident-related vehicle damage.

Here are the three main types of collision coverage:

Broad collision coverage: Broad form collision coverage will pay for all of the costs relating to the repair of the damage to your motor vehicle regardless of fault, i.e., whether you caused the accident that resulted in damage to your motor vehicle.  However, if you were not more than 50% at-fault, i.e., “not substantially at fault,” then your deductible will be waived.

Standard (also referred to as “basic”) collision coverage: Like broad form collision coverage, standard collision coverage will pay for all of the costs relating to the repair of the damage to your motor vehicle regardless of fault, i.e., whether you caused the accident that resulted in damage to your motor vehicle. However, unlike broad form collision, you will still be required to pay your deductible, even if you were “not substantially at fault.”

Limited collision coverage:

Limited collision coverage provides no benefits or coverage if the operator or driver of the covered vehicle was more than 50% at-fault in causing the accident that resulted in damage to the covered motor vehicle. Collision coverage will apply when the operator or driver 50% or less at fault.

Limited collision coverage policies are available with or without deductibles.

What if I don’t purchase collision coverage?

Failure to purchase collision coverage means that, unless you find an alternative source of payment (such as the Michigan mini tort or the No-Fault Law’s Property Protection Insurance benefits), you will pay for all of the repair costs associated with your accident-related motor vehicle damage.

Note: Michigan’s mini tort Law can pay up to $1,000 of your vehicle damage. Read all about the Michigan mini tort here.