Standard collision sometimes referred to as regular collision is the in-between collision coverage. It protects you against all types of collision losses regardless of who is at-fault. And it costs a little less than broad collision. The difference between broad collision and standard is that standard collision comes with a deductible whether you are at-fault or not.
How it works:
When purchasing standard collision you select a deductible. The deductible chosen will apply on all collision claims. Insurance carriers offer standard collision at a cheaper rate when compared to broad because you are taking more risk on your own. If you know who the at-fault vehicle is, then you can file a separate limited property damage against the other vehicle’s insurance policy. A limited property damage claim will allow you to collect up to $1000 for your deductible.
Example: Another driver runs a stop sign and t-bones your vehicle. In Michigan, your car insurance policy will cover your physical damage costs as long as you have collision coverage on your vehicle at the time of the accident. You have standard collision listed on your vehicle with a $500 deductible. You will need to pay your $500 deductible and file a limited property damage claim sometimes called a mini tort claim against the at-fault vehicle’s insurance policy to get reimbursed for your $500 deductible.
Example: Another driver side swipes your vehicle while changing lanes. The at-fault driver drives off making the accident a hit and run. Since you have standard collision listed on your vehicle with a $500 deductible, you will have to pay the deductible in order to get your vehicle repaired.
As you can see, standard collision costs a little more at the time of an accident and causes a little more hassle verses broad collision. Filing a mini tort claim to get your deductible back is not difficult and most insurance agents will help you through the process. The savings on your car insurance rates might make the little extra leg work worth it.