Michigan Car Accidents, Car Repairs, & Damage Claims – FAQ's

The insurance laws in Michigan regarding motor vehicle accidents are very confusing and change on a daily basis. The No-Fault law was created in 1973 and there have been over 2,000 written court opinions regarding these laws.

1. In Michigan, who has to pay for the repairs and damages to my car? How much you will receive depends on whether you or the other driver was at fault and on what type of collision coverage you had on the car. Your own car insurance pays for the repairs on your vehicle.

2. What types of collision coverage are there in Michigan? There are three types of collision coverage for repairs to your car. They are called Limited Collision Coverage, Standard Collision Coverage, and Broad Form Collision Coverage.

3. What if I did not buy collision coverage in Michigan? If you did not buy collision coverage, you will have to pay for the repairs to your car even if you were not at fault in the accident. You may be able to recover up to $500.00 from the other driver or his insurance company. This is called a mini-tort claim.

4. What is a deductible? This is the amount that you agree to pay toward the cost of repairs before the insurance company steps in to pay the rest.

5. How much money out of my pocket will I have to pay for the repairs after the Michigan car accident? This depends on which type of coverage you had at the time of the accident.Once you have determined whether you have Limited Collision Coverage, Standard Collision Coverage, or Broad Form Collision Coverage, you need to determine who was at fault for the accident. Call your car insurance agent for a further explanation of the type coverage on your vehicle.

6. Do I have to pay for repairs and damages to another person’s car if I caused the Michigan auto accident? If you had insurance on your vehicle, the most you will have to pay is the deductible for the other car. The maximum is $500.00. If the other car was not insured for collision coverage, the most you will have to pay is $500.00 even if the damage costs much more to repair. The amount you are required to pay is still based upon your percentage of fault in the accident. Also, many times your insurance policy will cover the other driver’s deductible if you were at fault in the accident.

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