Car, Home, Toys, and Life Insurance Resource Center

Welcome to the best Michigan insurance resource! Michigan has the most unique insurance laws in the United States. Learn about what it takes to be insured properly as a Michigander. Get saving tips, mandatory coverage amounts, and answers to many frequently asked questions.

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21
Oct 16

Understanding Your Auto Insurance Policy

A typical auto insurance policy will have an array of features, which can befuddle the average person. It’s recommended to understand what these terms mean and what a “good” insurance policy will look like before signing on the dotted line. It is important to learn all the intricate terms a policy could feature and what a person should be looking out for.

It is possible to save money and find a great option as long as these terms are recognized and defined beforehand.

Key Terms

The average consumer will look at a few details and ignore the rest. This is not only a poor way of looking at things, but it can also lead to life-changing issues later on when the policy is required to protect you. Therefore, it’s best to take action right now and understand key terms you should be on the lookout for as a buyer.

These are terms all experts state are necessary when you’re hoping to get a good deal.

1) Collision and Comprehensive
2) Third-party Liability
3) Deductible
4) Optional Coverage
5) Accident Forgiveness
6) “Fault”
7) Total Loss
8) Policy Limits
9) Endorsement

It is these nine terms you should understand and research when it comes to your auto insurance policy provisions. Let’s go through all of them one by one.

Collision and Comprehensive: Collision coverage refers to repair costs associated when your vehicle is involved in an accident. Comprehensive coverage entails damage for everything else other than accidents which require repair work.

Third-Party Liability:
Refers to the amount paid out to other drivers when you’re at fault.

Deductible: This is the set amount you’re required to pay for repairs before the insurance agency puts in its share. It’s best to have this as low as possible to the extent you can afford the extra premium. The lower the deductible, the higher the premiums will be.

Optional Coverage:
These are added features on top of the foundational elements of your policy. These can be adjusted based on what you require.

Accident Forgiveness: This feature refers to the first accident (regardless of fault) being written off by the insurance company. This accident won’t impact your rates at all.

Fault: This refers to who caused the accident according to the police investigation. If a report was not filed, the “fault” could be disputed in court.

Total Loss: This is a set amount where the vehicle’s repair costs are more than the vehicle’s total value at that point in time. In this case, the car is replaced and considered a total loss.

Policy Limits: This is a term given to define set limits for each feature (i.e. deductibles and liability payments). These limits are often established for each claim a person makes.

Endorsement:
This is an added feature to protect a particular part of the vehicle (i.e. expensive rims) and its related details.

Saving Money On Your Auto Insurance Policy
For those who wish to save money, you can play around with these features and the policy limits that have been established.

Deductibles are a good place to start. You want to work on setting this as low as possible, so you’re not paying out of pocket for each claim. However, if you want a reduced monthly bill, you can increase the deductible. Consider the cost/benefit of collision and comprehensive insurance for older cars.

What Can Be Ignored?

While it is important not to ignore everything, it is possible to get away with select terms that are seen in policies.

What are some of these terms?

1) Regulations
2) McCarran-Ferguson Law
3) Financial Responsibility Law

In general, once these are found on the page, you don’t have to consider them any longer as they are standard in all policies. What are these terms? They are referring to state and federal laws put in place which have to be followed by insurance companies. These are mentioned, so you’re aware they’re being met by the agency that is selling you a policy. It doesn’t matter if these are present or not as they’re legally required regardless.

These are the nuances one should be thinking about when considering auto insurance. There are many details to consider, and those who are on top of things will get a far better deal than those who skim through and ignore the terms outright. Take your time to recognize these conditions and see how they impact your policy in the short and long-term. Until you do this, you will be taking a massive risk with your policy.

Written by Guest Author Jeff Thornhill
Jeff is a writer for CoolCarsPage.com and an avid car enthusiast.


06
Nov 14

5 Michigan Auto Insurance Myths

Although you are not alone in not understanding the complexities of how auto insurance works in Michigan, there are myths and misconceptions out there about how our auto insurance works. Recently, some well-discussed facts were put out that can help to reduce the incorrect information and myths that surround auto insurance.

I can drive my car “a little bit” if I change my insurance to storage (comprehensive only)?

If you make the decision to park your car, or store it for the winter, you can reduce your coverage just to cover comprehensive damage while removing your liability and collision coverage. By doing this, you can reduce your monthly cost while maintaining coverage if something should happen to your car. However, it is important to know that even driving a car a little bit can put you at serious risk if something should happen to the car.

Be smart and be safe – if you are truly parking your car, you can reduce the coverage. But when you plan to drive the car again, make sure that you notify your insurance agent that you will be driving it again even if it is only for a day. It is better to be covered than not be covered.

If my car is stolen, my insurance will pay for a rental car until my car is found?

If your car is stolen, often times you can have rental costs covered up to a specific dollar amount if you have car rental coverage on the vehicle. Even with this type of coverage, it may not be enough to cover the cost of the rental until your vehicle is recovered. It is important to understand the level of coverage that you have so that if something does happen to your car, you are prepared to pay expenses, such as an extended rental car, out of pocket.

Buying that red sports car automatically makes me pay higher premiums.

The long-standing myth that people who buy red cars pay higher insurance just is not true. Many insurance agents will not even ask the color of your car when you call for a quote, instead, they are more likely to ask the year, make and model of the car.

It is true though that some car brands and styles do have a higher insurance rate. Here in Michigan, sporty cars and even hybrid cars can be the most expensive to insure. Safety features play a big role in insurance costs especially in a state with unlimited medical coverage! A mini van full of curtain airbags will most likely get you a better rate than a convertible.

Michigan “no fault” insurance program only helps those without insurance.

There are many false facts surrounding the “no fault” debate that continues to wage war in Michigan. Help for drivers that are in a serious accident will continue with ongoing debates about the level of costs and changes to the primary system for those needing rehabilitation and extensive medical coverage. Coverage for those injured while driving includes medical and care costs associated with the accident; costs that may be viewed as higher in Michigan than in other states that do not have caps on the coverage given based on the definition of “no fault“.

Insurance coverage in Michigan is not mandatory.

There are three types of mandatory insurance in Michigan – personal injury protection, property protection and residual liability. Each of these levels of protection is different and covers different aspects of an accident or injury from a car incident.

  • Personal Injury Protection (PIP) – This coverage pays benefits to the individual in the accident from their own insurance company.
  • Property Protection – This coverage covers the damages you cause with your car.
  • Residual Liability – This coverage gives the individual protection if they are sued by the other individual in an accident.

It is important to understand the truth about your own automotive coverage, and what you need as a driver when living in the state of Michigan.

Further Reading

MI Insurance Tips

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Is Home Insurance Required? How to Get a Home Insurance Quote No License, No Problem

04
Nov 14

What Happens If I Pay My Car Insurance Late?

It happens to everyone. Sometimes you just don’t have the funds you need when you need them. Other times you simply forget and the date slips by you. Whatever the reason, you may find out you paid your insurance bill late. Now is not the time to freak out depending on how late it is. If you don’t know what happens when you pay your car insurance late in Michigan then, you will find this helpful.

First, look at how late you are. Is it a day behind, a month, more or less? This is important to determine how late it will actually be. Did you already mail the check off, or did it just enter into your mind to do so? This is another determining factor in what happens.

Things You Should Expect

  • Late Fees
  • A Double Payment (the past due amount plus the current month’s payment)
  • No Reinstatement if it is a Second Offense

The unfortunate truth is that some insurance companies will temporarily suspend your insurance even if you are just a day or two late in paying. In insurance lingo, this is known as a lapse in your insurance policy. A lapse in your policy means that you are not insured and considered to be an illegal driver because of it.

Fortunately, most insurance companies are going to send you a notice that you are at risk of having your insurance policy lapse if they do not receive a payment within a certain amount of time. This could be a few hours or a few days. Your insurance company may opt for giving you a phone call in addition to written notification. If you do not contact your insurance company to work something out, or pay them, you should consider yourself as an uninsured driver. To make things even worse, some insurance companies will charge you a late fee per day until you make your insurance payment.

What Happens When it Lapses

After your insurance company lapses your insurance coverage, the last thing you want to do is be caught driving without insurance. If you get pulled over or you get in an accident, you could lose both your license and the registration of your vehicle. Then, you have to pay a reinstatement fee to get your license back and you have to pay to register your vehicle again. If you are alone in the vehicle, you could also end up having to pay an impound fee to get your vehicle back.

In some cases, you may even be facing jail time for getting in a car accident while you were unlicensed or uninsured. Whether or not this happens, depends on if you have previously driven without insurance before.

What Should You Do?

You have to keep in mind that insurance companies are not like the monster that lived under your bed when you were a child. They understand the hiccups in finances and unexpected expenses happen from time to time. In a lot of situations, an insurance company is more than willing to work out some kind of plan with you. Don’t push their willingness to help. Being late every month is not acceptable and will most likely result in your policy being cancelled.

The worst thing you can do in this situation is doing nothing. Call your insurance agent and let them know you are struggling to find the money to make your payment in time. Just tell them what’s going on and see if some kind of long term payment plan can be worked out. You can also ask if you can have a few days or an extra week to make a payment without having to worry about your insurance lapsing.

Your insurance provider has no way of knowing that you are struggling to find the money if you don’t tell them. Not telling them anything at all is when they just assume you are not going to pay them at all. Losing your status as an insured driver will make you a high risk driver. In Michigan that means when you do get your finances straightened out, you will be paying a much higher insurance rate for a full six months to get back to a preferred rate.

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02
Oct 14

How to Get Your Car Insurance Ready for Winter in Michigan

Don’t let the snow sneak up on you – get both you and your car ready for another Michigan winter with these easy tips to maintain all around coverage for the long months ahead.

Is Your Car Hibernating this year?

If you plan to park your car for the winter and not drive it, you can certainly change over your insurance and remove your collision coverage. If your car is truly not going anywhere, then you can set up your policy to maintain just comprehensive coverage. It is important to talk with your agent on the specific guidelines for removing levels of coverage from your car. Plan ahead and start this process early.

The Best Car Insurance for WinterBy changing this coverage, you can save yourself some money on your policy during the months that your car isn’t on the road. However, make sure that you plan to truly keep that car tucked away safe for the winter. If you drive that car out for any reason without upgrading the policy, you can put yourself at significant risk if you have an accident.

Changing or reducing coverage is a much smarter move than allowing the policy to lapse. A lapse in coverage can cause damage to your rates over time, which can reduce the chances of benefits and bonuses offered for customers with consistent insurance coverage. Don’t allow yourself to fall into that trap, make sure you plan for the seasonal changes.

A Car Braving the Winter Needs Special Attention

Just like you, your car needs to be prepared for the winter weather. A lot of the time that starts with having the right coverage on your car insurance policy. Remember even if you are the best winter driver of all time, you cannot assume the other drivers on the road are too. Protecting yourself with insurance is a good way to avoid winter weather financial travesties.

Great Winter Car Insurance Coverage Options

Broad Collision – If you currently have no collision or standard collision, broad collision would be a great upgrade for the winter months. Broad collision makes it so Michigan drivers do not pay the deductible when they are not at-fault. This protects you from paying out of pocket expenses when a careless or out of control vehicle hits your vehicle.

Roadside Assistance – Lots of Michigan residents have been there at some point in time, stuck on the side of the road in blizzard like conditions. Save yourself some money by adding on this usually very inexpensive coverage for the winter months.

Car Rental – Would you be hurting if your vehicle is in the shop for repairs? If you do not have an alternate vehicle, car rental coverage can save the day after a car accident.

Accident Forgiveness – Let’s face it, it can happen to any of us. Sliding on ice and hitting another vehicle or guard rail can seriously raise your insurance rate. Consider adding accident forgiveness to avoid steep insurance rate hikes this winter.

Before you head out this winter, check in with your agent to make sure you have the right coverage for your winter driving. Sometimes changes in driving patterns can mean that you need to change the way you are covered. Any time that you change jobs start school, add a new driver in your household, or the season changes it is a good idea to check in with your insurance agent to make sure that you are covered from hood to bumper.

Michigan Winters need Preparation

Whether it is the mental preparation of surviving another winter, or the preparation that it takes to ensure that you will be able to get to go where you need to go this winter, do not let the winter weather catch you by surprise; plan ahead with your agent by doing a winter weather “check-up” on your policy.

Checking in with your local agent to make sure that you have what you need to make it a great winter for both you and your car is the perfect way to welcome in the new season.

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Is Home Insurance Required? Penalties for No Car Insurance In Michigan No License, No Problem

10
Sep 14

Caught Driving Without Car Insurance in Michigan

Everyone grumbles about having to pay that monthly payment for auto insurance, but you certainly do not want to be caught driving without it. It can mean big fines, license suspensions and even jail time. That is not to mention the huge financial risk you are taking in driving without protection in case of an accident.

Penalties for No Car Insurance In Michigan

Simply running up to the local convenience store could still mean an unintended accident with serious property damage, personal injury or even death. This is why they are called accidents. They are rarely planned. Can your estate withstand a serious lawsuit from injuries, damages or the death of another driver or passenger? Better not take the risk.

No-Fault Coverage

In the state of Michigan you are required to have and maintain a no-fault insurance policy. It covers any damages and injuries caused by a car accident no matter who is at fault. It has to include coverage for personal injury protection (PIP), property protection and residual bodily and property injury.

The PIP will cover your medical expenses from any accident you are involved in. You can attach your personal health insurance to the PIP so that it pays up to the maximum policy amount and then your PIP will kick in and pay the remainder.

If you are unable to work then the PIP will cover your salary up to 85%, but it is limited to $5,282 dollars per month for a maximum length of 3 years at this current time. This amount is different every year, so you will need to check on current statistics.

Property Protections

The basic property protection coverage or PPI should pay up to $1 million dollars on property, such as homes or businesses. It will even pay for cars that are legally parked and damaged in the accident.

Residual Damage Liability Coverage

The residual bodily injury (BI) and property damage (PD) is designed to protect you from lawsuits unless:

  • You cause a serious bodily injury or death accident
  • You have an accident with a non-Michigan resident with a non-Michigan registered vehicle
  • You are involved in an out-of-state accident
  • You are higher than 50% at fault. You can then be sued for up to $1,000.

BI and PD liability insurance covers the cost of your defense and pays for any damages up to policy limits. In Michigan the minimum coverage you have to carry is:

  • $20,000 for death and injury
  • $40,000 for multiple injuries and death
  • $10,000 for out-of-state property damage

Consequences of No Insurance

Being caught without any auto insurance in the state of Michigan can be a very expensive lesson. You can be convicted of a misdemeanor that involves a fine anywhere from $200 to $500. It can also mean up to a year in jail. It really depends on whether it is your first time, or you are repeatedly caught without insurance. It can also involve a 30 day driver’s license suspension, or at least until you can provide proof of current and valid insurance.

These penalties all pale in comparison to the possible consequences of being sued from injuring or killing someone in an accident. Being sued for property damage without the protection of a Michigan auto insurance policy can be devastating. You can lose your home, business and even personal belongings. It is simply a bad move to make.

Paying a monthly payment without ever filing a claim may be irksome at times, but think about all that it protects you and your family from. You cannot predict when and where an accident will happen. Stay protected with the coverage that you need. You may not need it often, but will be glad when you do and you have it available.

Further Reading


25
Aug 14

Does Car Insurance Protect Against Flood?

When you think of flooding and the damage it can do your mind automatically clicks on “Act of God.” It is a term that is tossed around frequently and can apply in cases of certain types of insurance, but you can actually have your car protected and covered from flood damage if you have the right policy. If there was ever a reason to reconsider having bare minimum coverage on your car or truck, natural disaster is one.

There is no way to stop flooding from happening and you do not even have to live in a designated flood zone to be affected. With the crazy weather events that have been happening, localized serious flooding can happen anywhere.

Comprehensive is Comprehensive

You may be the best driver in the world and save a lot of money by carrying liability coverage only, but if your vehicle suffers flood damage it will be a complete loss without comprehensive coverage. Comprehensive is just that, the most comprehensive insurance you can have that covers a multitude of bad things that can happen to your ride.

If you own a car or truck that is 10 years old or newer you should carry comprehensive coverage on it. It costs thousands of dollars to replace a good vehicle. How hard would having to replace it hit your budget? How long would it take to save money for a new one? What if you are still making payments on it? You will have to finish payments on that AND save for a new one.

How Much Damage Can Water Do?

The higher the water is that your car or truck is stuck in determines the extent of the damage. It will damage the interior a lot quicker than the engine, but even a partial submerging can render the vehicle totaled. This is because the damage to the wiring and other components is typically ongoing.

It’s important to get the car away from the water as fast as you can and begin drying it out. That does mean grabbing the hair dryer and towels. You need to have an experienced service that specializes in drying out flooded vehicles do the work. This is not the time to try and save a dollar or two. If you have to pay out-of-pocket for it there will be reimbursement as long as the damage was done by flooding and your coverage is current.

Limits on Coverage

Even though comprehensive insurance will cover a multitude of things there is one limit that can make a difference. If you live in an area that is considered a flood zone or in a hurricane prone area and there is bad weather predicted to move in, you will not be able to run down and get coverage at that time. It is simply a matter of common sense. It isn’t really fair to cover everyone all year long and then have you rush in right before bad weather and get the same coverage, right? Save yourself the embarrassment and move the vehicle to a safe area until the weather passes and THEN get coverage.

If you have comprehensive insurance on your vehicle and you experience a flood event then:

  • Have the car removed from the water as soon as it is safe enough to do so.
  • Have a licensed and insured company start the drying and salvage process.
  • Contact your agent to file a claim.

Make sure to keep your policy payments up to date if you live in an area that is prone to weather events. You don’t want to be denied coverage because you inadvertently forgot to make a payment.

Further Reading

MI Insurance Tips

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Is Home Insurance Required? How to Get a Home Insurance Quote No License, No Problem

25
Aug 14

How to Get SR 22 Insurance in Michigan

Getting SR-22 insurance in Michigan is necessary when you are deemed a high-risk to insure. The process takes a bit of time, is more expensive than traditional insurance, but can be done fairly quickly in Michigan. Whether you are high-risk or not you have to maintain a certain amount of no-fault coverage if you plan to operate a motor vehicle legally.

No-Fault Coverage Requirements

There was a lot of thought that went into the development of the no-fault insurance coverage requirements. It eliminated the need for unnecessary litigation and argument about who was at fault. All people involved and hurt receive compensation for injuries. It makes the time to wait for payment much less. The one that is eventually found at fault enjoys a higher premium.

Michigan requires you to carry a policy that provides at least:

  • $20,000 in bodily injury coverage
  • $40,000 in multiple injuries
  • $10,000 in property damage

What is SR-22 Insurance?

SR-22 insurance literally stands for “safety responsibility.” It is not an actual policy. It is just paperwork that verifies that you have an insurance policy. Your insurance company prepares it and files it with the appropriate motor vehicle agency as proof that you have an existing policy.

Any violation resulting in a suspension of driving privileges requires establishing a high risk policy and SR-22 proof of it. Convictions of DUI, reckless driving or even driving without insurance can draw the penalty.

There are times the court will require you to carry a policy and submit an SR-22 whether you own a vehicle or not. It will be stipulated for a certain number of years after the conviction. This is fairly common with DUI convictions. If you fail to make your insurance premium payments then the SR-22 is cancelled and the motor vehicle department will receive SR-22 paperwork. Your license is then suspended until you file a new SR-22.

How to Get an Insurance Policy with SR-22 Documentation

If you are required to have high-risk insurance and provide SR-22 documentation then you will have to start the search for a company that will be willing to offer you coverage. You really need to make sure that it is adequate for the coverage that the state requires. Be prepared for it to have a high price tag, at least initially.

Since time is of the essence you want to make sure that you deal with an insurance company that will get your documents prepared and sent in to the motor vehicle department timely. Missing deadlines can spell disaster if you are trying to stay in the good graces of the curt and earn your driving privileges back.

The better options are usually with more well-known nationwide insurance companies. You need to make sure that you are talking with someone that is familiar with the laws of SR-22 in Michigan. States can vary in both coverage requirements and time limitations.

The Follow-Through

When you get the required insurance coverage and verify it with SR-22 documents, it will eventually get you in a better position of getting past the issues and getting full driving privileges back. After about 3 years of paying the high-risk premiums you may get to drop down to normal coverage with normal rates. It may seem overly expensive and a burden at the time, but getting this coverage and maintaining it without fail will get you free of the extra expense sooner than later.

The whole reasoning behind SR-22 is so the insurance company is aware of the higher risk they’re taking on in insuring you, and that the motor vehicle department can be confident that you have the proper amount of coverage.

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16
Jun 14

Mini Torts and Limited Property Damage Claims

Michigan has a special coverage listed on their no-fault policies to cover damage caused by an at-fault driver. It only applies if the not at-fault car does not have broad or limited collision on its insurance policy. The coverage is called limited property damage and most people call the claim itself a mini tort claim. Essentially mini tort and limited property damage are referring to the same thing. A small amount of money on Michigan car insurance policies setup to cover at-fault damages to someone else’s vehicle.

How much does limited property damage coverage cost?

The cost of limited property damage coverage is actually minimal when compared to other Michigan car insurance coverages. Expect to pay somewhere between $5 and $15 per vehicle per six month policy period. The low cost of the coverage makes it a must have on your Michigan auto policy. Most Michigan insurance agents automatically add it to every policy quoted.

Is limited property damage a required coverage?

Legally, no. It is not required, but it is really silly not to purchase it. A very high percentage of Michigan drivers carry limited property damage. More times than not, I bet those who do not have it, setup their own policy with online insurance. Online insurance carriers often do not add limited property damage automatically and the purchaser does not know the cost or understand the coverage.

What if I am in an at-fault accident and do not have limited property damage on my policy?

The not at-fault party can take you to small claims court for the $1000 and they will most likely win. Then you will have to pay the court costs too. I would recommend paying this one out of pocket without court hassles, and immediately update your policy to list limited liability coverage on all your vehicles. Remember $1000 is all the not at-fault party is eligible for as long as you have an active auto insurance policy at the time of the accident.

What is considered a mini tort claim in Michigan?

  • Two vehicles in a collision and the not at-fault vehicle has no collision.
  • Two vehicles in a collision and the not at-fault vehicle has standard collision with a deductible.
    • How much money is paid out for a mini tort claim?

      Last year the mini tort claim payout in Michigan was increased to $1000. You are only eligible for the full $1000 if your damages meet or exceed the limit.

      What do you need to file a mini tort claim?

      • You must know who caused the damage to your vehicle.
      • A police report is important but a claim can be filed without one if the at fault driver admits fault.
      • A copy of your declarations page showing your collision coverage.
      • An estimate of the damage to your vehicle from a body shop.

      How does a mini tort claim affect insurance?

      • Not at-fault drivers are not affected at all. The claim is filed on the at-fault car’s insurance policy.
      • At-fault drivers are looking at an at-fault accident on their driving record. At-fault accidents typically make your insurance rate go up. Some insurance carriers do not surcharge unless more than $500 is paid out. And some people carry special coverage called accident forgiveness to avoid at-fault accident increases.

      Mini tort claims might sound complicated to Michigan drivers because we are so used to filing claims with our own insurance carriers. But, its really an easy process and you can do it yourself. Just call the insurance carrier of the at-fault driver and they will walk you through the claims process.

      Sometimes your car insurance agent will help you through the process too depending on your relationship with your agent. Since the claim is not filed with your insurance carrier though, some agents will direct you to the at-fault car’s insurance carrier. Don’t worry though. As long as you have all the documentation, your mini tort claim should not take more than two to three weeks to file and get your claim check.

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29
May 14

Do I Need Michigan Car Rental Insurance Coverage on My Vehicle?

Car rental insurance can refer to a couple of different types of insurance in the state of Michigan and it applies to all US states. One is the car rental coverage which you purchase on your vehicle, and two is car rental insurance you place on a rental car. Both are completely different types of coverage and both can be a little confusing. Find out if you should purchase car rental insurance on your vehicle.

Rental Insurance for Your Car

Who should purchase rental coverage? Rental coverage on your vehicle can be very convenient if you are in a severe accident. You should purchase the coverage if one or more of the following situations apply to you.

  • You only have one vehicle
  • You have a small or non-existent emergency fund

While your vehicle is not drive-able or in the shop for repairs, a rental car will be partially or fully covered depending on the coverage you selected. Rental coverage is purchased by how much your carrier will payout per day up to 30 days. For example, 30/900, $30 a day up to $900. It can be frustrating being without a vehicle after an accident. That frustration can compound quickly especially when the the accident was not your fault.

Rental coverage for your vehicle is a convenience coverage. Lots of people can coordinate schedules or seek help from family to get access to a loaner car while theirs is not drive-able, but it is inconvenient. Having car rental coverage on your vehicle will make your claim simple and certainly more tolerable.

Avoid car rental coverage if one or more of the following apply.

  • You have quick and easy access to an extra vehicle
  • You have an emergency fund available to cover the costs of a rental

I have seen it time and again where a couple owns and insures three vehicles, yet they carry car rental on all three. Last time I checked, you can only drive one vehicle at a time. Rental coverage on three vehicles for a two driver family is a total waste of money. Please use common sense when purchasing this coverage.

Common Misconceptions

Car rental coverage is only for when your vehicle has sustained a covered loss. It does not provide coverage if your car has maintenance problems and or mechanical failure. Yes, it would be nice, but it just doesn’t work like that. Car rental is only available if you have purchased both comprehensive and collision coverage.

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26
May 14

Michigan Collision Coverage

Michigan offers four different options for collision on car insurance. Each coverage has its own set of pros and cons to consider. Learn the basics of the four types of coverage and get even more details and examples by clicking on the coverage you want to learn more about.

Types of Michigan Collision Coverage

  • No Collision Coverage: In Michigan if you do not carry collision coverage of any kind, you will not be covered by your car insurance policy for physical damage to your vehicle from a collision. The most money you can receive from an at-fault driver’s car insurance policy is $1000 and you must know what vehicle caused the damage in order to file a claim.
  • Limited Collision Coverage: Limited collision provides coverage for collisions which are not your fault. Limited collision usually comes with a zero deductible.
  • Standard / Regular Collision Coverage: Standard collision provides coverage regardless of who is at-fault however a deductible will apply in both scenarios. You can recoup you deductible by filing a mini tort claim against the at-fault vehicle’s policy for up to $1000.
  • Broad Collision Coverage: Broad collision provides physical damage coverage for collisions regardless of who is at fault too. The key difference is if you are not at-fault no deductible applies. This comes in very handy when you do not know who caused the damage to your vehicle.