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There is only one type of collision insurance in most states, and it pays to repair or replace the policyholder’s vehicle after a car accident. Collision insurance applies whether or not the policyholder was responsible for the crash, and it’s usually required for leased or financed cars.
Michigan is the only state with different types of collision insurance: limited, standard, and broad form. Limited collision insurance only pays to repair or replace the policyholder’s car when another driver is at fault, while standard and broad form collision insurance apply regardless of who was at fault. A deductible is required for most collision insurance claims in Michigan, except when the policyholder has broad form collision coverage and was not at fault.
Types of Collision Insurance in Michigan
| Type of Coverage | When It Applies | Deductible |
| Limited | When another driver is at fault | Anytime you file a claim |
| Standard | Regardless of fault | Anytime you file a claim |
| Broad Form | Regardless of fault | If you were at fault |
Michigan car insurance companies offer special types of collision insurance because of the state’s unique no-fault rules. In most no-fault states, no-fault laws only apply to injuries, not to vehicle damage. However, Michigan’s no-fault rules extend to vehicle damage, so Michigan residents need to purchase collision insurance if they want coverage for car repairs after an accident.
To learn more, check out WalletHub’s guide to Michigan car insurance requirements.
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