Whose Fault Is It Anyway?: No-Fault & Collision Coverage, Explained
By Derek Wesch, Claims Manager
SCREEECH, BOOM!! You were driving your kids to school when all of a sudden another vehicle suddenly slammed into the back end of your vehicle. The first thing you do is check on your kids. Thankfully, neither they nor you sustained any injuries. However, the same cannot be said for your car. The back end is a mangled mess. You look at it with one thought running through your head, “Who is going to pay for this, because I sure can’t?!?”
In the state of Michigan, we have the Michigan No-Fault Act. This act is most known for the benefits it provides for injuries caused by auto accidents. The act also plays a key role in determining who is responsible to pay for the damages to the vehicles involved in the accident.
The act states that the driver of the vehicle who is deemed more than 50% at-fault for an auto accident is responsible for the uninsured damage to the other vehicle, up to $1,000. This is commonly referred to as mini-tort.
If you have collision insurance on your vehicle, the at-fault driver will be responsible only for the deductible your insurance company charges you, up to $1,000. The rest of the damages will be the responsibility of your insurance company. If you do not have collision insurance, then you are entitled to receive up to $1,000 for the damage to your vehicle.
Let’s go back to the scenario above. You took the vehicle to a repair shop who advised it would cost $5,000 to repair the vehicle. Luckily, you obtained physical damage insurance coverage for your vehicle through Brown & Brown of Detroit, Inc. You elected an insurance policy with a $1,000 deductible. You will be able to recover $1,000 from the at-fault party and the insurance company will pay for the remaining $4,000.
With a dedicated, internal claims manager, Brown & Brown of Detroit is always here to assist and advocate for the best interest of our clients.
Visit us at www.bbdetroit.com or call 586-977-6300 to speak to an advisor about your coverage.