Michigan Auto Insurance: Choosing Between Comprehensive and Collision
One of the most satisfying purchases you can make in life would be your very own automobile. Owning a vehicle allows convenience and freedom in going from place to place within Michigan, or even out of state.
It is said, however, that nearly everyone will figure in a car accident at least once in his life. Given this, you should inform yourself about the different kinds of car insurance in Michigan, so you would know what type of coverage to get.
Michigan laws require all car owners to have No-fault insurance. This, however, generally pays only for injuries you may sustain in an accident, and not for car damages. For the latter, you would need additional coverage, and two of the most common types are comprehensive and collision.
An article in About Money discusses the differences between the two, as well as their advantages and disadvantages.
Collision coverage provides protection for car repair or replacement costs arising from a crash, or collision, with another vehicle, Although Michigan is a “no-fault” state, coverage in some insurance policies depends on how much you are at fault in an accident.
A Regular/Standard Collision coverage will pay for car repair or replacement expenses regardless of who is at fault, but you will need to pay a deductible. “Broad Form Collision Coverage”, on the other hand, will pay for car repairs regardless of who is at fault, but will charge a deductible if you are more than 50% at fault.
Comprehensive coverage offers protection for car damage caused by anything other than a collision, such as theft, fire, vandalism, or natural disasters. This type of policy often requires a deductible. The higher the deductible, the lower the cost of the policy. Many insurance companies offer collision coverage only in combination with comprehensive coverage.
Which is better?
Both collision and comprehensive coverage are there to protect you from shelling out your lifesavings if your vehicle is damaged. In choosing the right policy, there are many things to consider, such as the age of your car, its make and model, and your driving habits. The amount of deductible you are willing to pay will play a large role in the kind of policy that you get.
Consulting with trusted Michigan auto insurance agencies, such as Allied Insurance Managers, Inc., can help you identify the coverage that would be most appropriate for your needs and preferences.
(Source: Comprehensive Vs Collision Coverage, About Money)