[FIS-PUB 0202] Michigan Department of Insurance and Financial Services | 877-999-6442 | www.Michigan.gov/DIFS [10/19]
However, courts sometimes award more than
these amounts. If this happens, you would be
responsible for paying the amount not covered by
your insurance policy. To protect themselves,
many people buy higher limits of liability
insurance.
A No-Fault Policy Covers the Whole Family
A no-fault policy covers all family members living
in the same house. Personal injury protection
benefits will be paid even when a family member
is a passenger in another person’s car or is a
pedestrian when an accident takes place. The
personal injury protection coverage of your no-
fault policy also covers anyone who does not
have a no-fault policy and is hurt as a passenger
or pedestrian in an accident involving your car. It
will also cover a motorcyclist who is hurt in an
accident involving your car.
This is only a brief summary of no-fault insurance.
Some of the details have been left out. For more
information read your policy, talk to your agent, or
contact the Department of Insurance and
Financial Services (DIFS) for any additional
publications on this topic.
Insurance You May Want to Buy:
There are several types of coverage that you can
choose to buy in addition to the required no-fault
insurance. Three of the most common types of
extra insurance are described on this page.
1. Collision and Comprehensive Insurance
Your no-fault insurance DOES NOT pay for
repairs to your car if it is damaged in an
accident. If your car is properly parked and
hit by another car, the other driver’s no-fault
coverage will pay for the damage to your car.
Except for this one situation, the only kinds of
auto insurance that will pay for repairs to your
car are collision and comprehensive
coverage.
a. Collision coverage pays for repairs to your
car when it is damaged in a crash. There
are three basic kinds of collision insurance
to choose from: limited, standard and
broad form. The chart on the next page
describes each type and what it covers.
The deductible mentioned in the chart is
the amount of money you agree to pay
toward the cost of repairs before the
insurance company steps in and pays the
remainder. The larger the deductible, the
lower the cost of your collision insurance.
b. Comprehensive insurance pays for your
car if it is stolen or for repairs if it is hit by
a falling object, collides with an animal, or
is damaged in a fire, flood or by vandals.
If you have an older car, you may not want
collision and comprehensive coverage. If
your car is financed, the company that loans
you the money may require that you buy
collision and comprehensive coverage.
2. Limited Property Damage Liability
Insurance - “Mini-Tort”
Most companies offer coverage for the $1,000
liability mentioned in (d) in the section on
residual liability insurance.
3. Towing and Rental Car Coverage
Towing and Rental Car Coverage is an
optional coverage available from most
insurance companies as an additional
coverage on an automobile insurance policy.
This coverage generally covers or reimburses
the cost of towing and/or a rental car for
covered events (accident, breakdown, flat tire,
etc.). The cost is usually small in relation to
the total policy premium.
Alternatively, many insurance agencies offer
memberships into clubs that offer these types of
benefits to their members. These clubs generally
offer limited reimbursement for the same types of
events. The memberships may also offer
additional benefits, and the membership fees vary
greatly. You should ask your agent how much the
membership costs, how the product works, and
what other benefits are available with the
membership to determine if the product is right for
you.