In Michigan's no-fault insurance system, each driver pays their own deductible for personal injury protection (PIP). Under the state's no-fault rules, drivers must use their own PIP coverage to pay for basic medical expenses after an accident, regardless of fault.
Michigan’s no-fault insurance system is only applicable to injuries, not property damage. If you file a property damage liability or uninsured motorist claim, you do not have to pay a deductible due to the nature of the coverage involved. However, your ability to collect a settlement from the at-fault driver’s liability insurance may be limited by state law.
Michigan’s modified comparative negligence system means that you can’t receive damages from the other driver if you are more than 50% at-fault for the accident. If that applies, you will have to repair your car using collision insurance, which usually requires a deductible.
You may be able to avoid paying a collision deductible, depending on the type of collision coverage you have and your share of the fault in an accident. In Michigan, drivers can choose between limited, standard, and broad-form collision coverage. Limited and standard collision coverage always require you to pay a deductible, while broad-form only has a deductible when you are more than 50% at-fault for an accident.
To learn more, check out WalletHub’s guide to no-fault insurance.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines
. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.