Benefits of Broad Collision in Michigan

Side view of collision damage on a car.
••• Peter Dazeley / Getty Images

One type of collision coverage unique to the state of Michigan is broad collision coverage. It comes with some great benefits that you should know about when setting up your car insurance policy. Weigh the benefits of the broad collision to determine whether it is the right coverage for you.

Key Takeaways

  • Michigan is unique in that regardless of who was at fault in a car accident, each driver must rely on their own insurance policy to fix damages.
  • There are many different types of coverage available in Michigan, with different levels of protection offered at different price points.
  • A broad collision policy offers the most comprehensive coverage, and is especially favorable when an accident is not your fault.

What Is Broad Collision Coverage?

Broad collision coverage is the "Cadillac" plan of collision coverage. If you are at fault in an accident, your insurance pays for the repairs after you’ve paid the deductible. But unlike normal collision coverage, if you are 50% at fault or less, you pay nothing—no deductible, and no out-of-pocket expenses.

Of course, this plan will likely cost you more than standard collision insurance would. Your other options in Michigan are standard collision coverage (your insurance covers repairs resulting from a collision, minus the deductible, no matter who is at fault), limited collision coverage (your insurance only pays if you are not at fault), and no collision coverage (you’re on your own if you’re in a collision).

Collision in Michigan

Michigan's collision coverage can be confusing to those who are first becoming acquainted with its terminology. Michigan is considered the truest no-fault state of all. When an accident occurs, the damage is repaired by your own car insurance policy. Therefore, without collision coverage, you will not be reimbursed from an at-fault driver's car insurance policy. The most that you can collect from another's person's auto insurance policy for physical damage is $1,000, which is often not enough to cover even basic repairs.

Michigan's new no-fault auto insurance reform legislation affects all personal injury insurance policies issued or renewed after July 1, 2020. An option was given for a reduced-cost policy that allows some medical costs to be paid by the policyholder's medical insurance. Collision coverage was not affected by the change, which was implemented because too many drivers were going uninsured because of unaffordable policies.

Types of Coverage In Michigan

There are various options available:

  • Limited collision protection: Provides coverage only if you are found not to have been at fault
  • Standard collision coverage: Provides coverage regardless of fault; however, a deductible is always required.
  • Broad collision protection: Provides coverage regardless of fault; however, not-at-fault claims will have no deductible.
  • No collision coverage: Offers no coverage.

Benefits of Broad Collision Coverage

Broad collision is the best form of collision in the no-fault state of Michigan. Also available are a standard collision coverage, limited collision coverage, and no coverage. If you are looking for the best car insurance coverage in the state of Michigan, broad collision coverage is the most comprehensive option available for the following reasons.

  • It covers physical damage to your vehicle due to an accident with another vehicle or other inanimate object.
  • No deductible is charged for not-at-fault accidents, including if your vehicle is hit while parked.
  • Your policy always covers you, so you do not have to deal with someone else’s insurance carrier.
  • Broad collision deductible only applies to at-fault accidents. So, you can increase your deductible in order to reduce costs, while still getting a zero deductible on not-at-fault accidents.