Going without collision coverage in Michigan can be risky business. Michigan no-fault laws make it so your own policy covers you. Meaning you cannot get full reimbursement from the at-fault driver’s policy in a collision. Michigan does however have what is called a limited property damage or mini tort claim.
Technically the coverage on your car insurance policy is called limited property damage. And to access someone’s limited property damage coverage you would file what is called a mini tort claim. Recently Michigan lawmakers increased the limited property damage coverage up to $1000.
Example: James was rear-ended at a stop sign. He does not have collision coverage on his auto insurance policy. His policy will not provide coverage to repair his vehicle. James does however know who rear-ended him and a police report was filed. James can now file a mini tort claim against the at-fault vehicle’s auto policy. Since James’ damage exceeds $1000 he is eligible to receive $1000 from the at-fault vehicle’s limited property damage coverage.
James is lucky. He would be out of luck had his accident been a hit and run. He would not be able to collect from his own policy and without knowing who hit him, he would not be able to file a mini tort claim. This is the biggest pit fall when it comes to going without collision coverage in Michigan. You could be left empty handed or short changed when another driver causes you to be in a collision.
What you need to file a mini tort claim in Michigan:
- Contact info of the at-fault party and their auto insurance company. Sometimes this is provided on the police report.
- A police report/and or the at-fault party admitting fault
- An estimate from a body shop showing the cost of repairs
- A copy of your declaration page showing you do not have collision or have standard collision with a deductible
Coordinate with the at-fault vehicle’s insurance company to make sure the claim is filed and the documentation is received. If you need help, ask your insurance agent. You do not need a lawyer to file a mini tort claim. It should be a fairly simple process so long as you have the proper paperwork.
Check out the different types of collision coverage in Michigan to make sure you select the right coverage for you and your family.