Michigan has three types of collision coverage to choose from: Standard, Broadform and Limited.
Standard form collision coverage is the most straightforward of the three types of collision coverages. In the event of an accident, standard collision coverage will pay the amount of the loss (up to the market value of the vehicle) minus the deductible. Most states only have one type of collision coverage, and that would be the standard form. Michigan is one of the few (if not the only) state that also have broadform and limited options.
Broadform collision coverage is nearly identical to standard collsion coverage, other than broadform coverage offers an added benefit that the standard coverage doesn't have. With broadform collision coverage, if you are in an accident and the other driver is more than 50% at fault, your deductible is waived. That is the only difference between the two coverages.
Limited form collision coverage is a whole different animal! I don't recommend for anyone to select the limited form coverage and here's why: If you are in an accident, and you are more than 50% at fault, you get nothing! Zero! In my opinion, you either choose to have collision coverage or you don't. Choosing to have collision coverage should be a simple yes or no answer, not maybe! This coverage obviously leaves a driver exposed to losing his or her vehicle if there is an at-fault accident. If you're trying to save a few bucks on your auto insurance, this is NOT the place to be butting corners. Not to mention, if you are financing your vehicle, it's a guarantee that banks and finance companies will not accept limited coverage.
To summarize, the thing I want you to get out of this article is to avoid the limited coverage! Either have collision coverage or don't have it. Choose either standard or broadform coverage.
Check your current auto insurance policy and see which coverage you have selected on your policy. And also, if you're paying too much for auto insurance, get a quote with my agency, and see how much money I can save you!
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Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..