Last Updated on August 20, 2025 by The Insurance Pros
Understanding Michigan’s 3 Collision Coverage Options
If you’re reviewing your Michigan auto insurance policy, understanding your collision coverage options is essential. Michigan offers three distinct choices: Standard, Broad Form, and Limited Collision. Each has its own rules, deductibles, and use cases; let’s break them down to help you make the right decision.
🚘 What Are the 3 Types of Collision Coverage in Michigan?
Here’s how the three options differ:
1. Standard Collision
- You pay your deductible regardless of who is at fault.
- Your insurer covers the rest of the repair costs up to your vehicle’s value.
2. Broad Form Collision
- You only pay your deductible if you’re more than 50% at fault.
- If the other driver is at fault, your insurer pays the full repair cost without requiring your deductible.
3. Limited Collision
- This coverage only pays if the other driver is found to be more than 50% at fault.
- If you bear the majority or complete responsibility for the accident, you won’t receive coverage.
🔍 Deductible Options
Common deductible choices in Michigan are $250, $500, and $1,000. Some insurers may offer even higher deductibles in exchange for lower premiums. A higher deductible reduces your monthly rate but increases your out-of-pocket cost after a crash.
⚖️ Pros & Cons Comparison Table
| Collision Type | When You Pay Deductible | Covers Damage If You’re At Fault? | Cost Level |
|---|---|---|---|
| Broad Form | Only if you’re at fault | ✅ Yes | 💰 Higher |
| Standard | Always | ✅ Yes | 💰💰 Medium |
| Limited | Never (but only if not at fault) | ❌ No | 💰💰💰 Lower |
💸 When Collision May Not Be Worth It
If your vehicle’s actual cash value is low, typically under $2,000, it might not be worth carrying collision coverage. Consider skipping it and putting the saved premium into emergency savings. If you opt out, make sure to still carry comprehensive coverage to protect against theft, weather, or animal damage.
🚗 Mini-Tort: Extra Help When You’re Not At Fault
Under Michigan’s Mini-Tort law, you can recover up to $3,000 from the other driver’s insurance if that driver is more than 50% at fault and you don’t have collision coverage, or if you’re trying to recover your deductible.
- Applies when the other driver is primarily at fault
- Useful for drivers without collision or those covering a deductible
- Keep a police report, photos, and repair estimates to file your claim
📄 Read: How to File a Michigan Mini-Tort Claim
📌 Final Thoughts
Choosing the right collision coverage depends on your vehicle’s value, how much risk you’re willing to take, and your monthly budget. Don’t forget to review all three types carefully and talk to an insurance expert if you’re unsure which fits your needs best.
