Michigan Auto Insurance Options
There are several types of coverage that you can choose to buy as part of your Michigan Auto Insurance in addition to the required no-fault insurance. Three of the most common types of extra insurance are described below.
1. Collision and Comprehensive Insurance – Your no-fault insurance DOES NOT pay for repairs to your car if it is damaged in an accident. The only kinds of auto insurance that will pay for repairs to your car are collision and comprehensive coverage in most cases. There are exceptions to this. For example, if your car is properly parked and hit by another car, the other driver’s no-fault coverage will pay for the damage to your car.
A. Collision Coverage – Pays for repairs to your car when it is damaged in a crash. There are three basic kinds of collision insurance to choose from – limited, standard and broad form. The chart on the next page describes each type and what it covers. The deductible mentioned in the chart is the amount of money you agree to pay toward the cost of repairs before the insurance company steps in and pays the remainder. The larger the deductible, the lower the cost of your collision insurance.
B. Comprehensive Insurance – Pays for your car if it is stolen or for repairs if it is hit by a falling object, collides with an animal, or is damaged in a fire, flood or by vandals.
If you have an older car, you may not want collision and comprehensive coverage. If your car is financed, the company that loans you the money may require that you buy collision and comprehensive coverage.
2. Limited Property Damage Liability Insurance – “Mini-Tort” Most companies offer coverage for the $1,000 liability mentioned in (d) in the section on residual liability insurance.
3. Towing and Rental Car Coverage Towing and Rental Car Coverage – An optional coverage available from most insurance companies as an additional coverage on an automobile insurance policy. This coverage generally covers or reimburses the cost of towing and/or a rental car for covered events (accident, breakdown, flat tire,etc.). The cost is usually small in relation to the total policy premium.
Alternatively, many insurance agencies offer memberships into clubs that offer these types of benefits to their members. These clubs generally offer limited reimbursement for the same types of events. The memberships may also offer additional benefits, and the membership fees vary greatly. You should ask your agent how much the membership costs, how the product works, and what other benefits are available with the membership to determine if the product is right for you.