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Standard vs Broad Form Auto Insurance Coverage in Michigan

Imagine the following scenario:

Stella was traveling east down the street. Another vehicle was travelling north and ran the stop sign. Stella’s car was hit. The police were contacted and the other driver was cited for failure to yield.

If Stella had standard collision coverage, she would be responsible for her collision insurance deductible. Why? Because the insurance deductible is paid regardless of who was at fault.

If Stella had broad form collision coverage, her deductible would be waived. Why? Because in the State of Michigan, the deductible is waived if the driver was not at fault for causing the accident. In the scenario above, Stella was not at fault. Let's dive deeper into the differences between standard and broad form collision insurance coverage.

Standard auto insurance coverage typically includes basic protections for your vehicle, such as liability coverage and standard collision coverage. Standard collision coverage generally protects against damage resulting from collisions with other vehicles or objects, subject to a deductible. This standard form collision coverage provides essential financial protection, but it may have limitations regarding specific situations or types of damage covered. On the other hand, broadened collision coverage, also known as broad form collision coverage, extends the protection offered by standard coverage, but encompasses a wider range of scenarios and damages.

Broadened collision coverage offers additional benefits beyond what standard collision coverage provides. It may include protection against a broader spectrum of accidents, such as collisions with animals, falling objects, or incidents where the driver is deemed at fault. Essentially, broad form collision coverage expands the scope of protection, giving policyholders more comprehensive coverage and peace of mind on the road. This type of coverage can be particularly advantageous for individuals seeking more extensive financial protection for their vehicles, as it offers a broader safety net against various unforeseen circumstances.

If you have any questions, please contact Your Friends In The Insurance Business at Midland's Ieuter Insurance Group. We can answer your insurance coverage questions.

(Photo by C Joyful on Unsplash)