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Understanding Broad, Basic, and Limited Collision | Michigan Auto Insurance

posted Sep 23, 2015, 12:19 PM by Jason Grubbs   [ updated Sep 14, 2016, 11:58 AM ]

If you purchase collision coverage as part of your auto insurance policy in Michigan you will have a choice of three different collision coverage options.  Here is a summary of those choices:
Broad Form Collision
By far the most common collision coverage option.  With broad form collision you are only responsible for the deductible if you are at-fault in a collision.

For example: With $500 deductible broad form collision, if another vehicle rear-ends your vehicle at a stop sign your insurance pays the full cost of repairs.  If the situation was reversed and you instead rear-ended the other car you would be responsible for the first $500 of repair costs.
Basic / Regular / Standard Collision
With this option coverage applies for any type of collision loss, however the deductible also always applies regardless of fault.

Under Michigan no-fault law you may be able to recoup your deductible (up to $1,000) from the at-fault party in an accident.  Keep in mind it can be difficult or impossible to recoup your deductible if you are the victim of a hit-and-run, you don't know who hit your vehicle, or if the at-fault driver is uncooperative and/or uninsured.
Limited Collision
With limited collision coverage only applies if you are not-at-fault in a collision loss.

Going back to the broad form collision example limited collision would respond similarly if your vehicle was rear-ended at a stop sign.  The difference would be if the situation was reversed and you rear-ended another car you would be responsible for the entire cost of repairing your vehicle.  Due to this coverage limitation limited collision coverage is not acceptable to lenders if your car is financed.
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