What is full coverage considered in Michigan?

Answer 1

Full coverage is considered having at least the state mandated liability coverage plus collision and comprehensive. Collision covers damage to your vehicle resulting from striking being struck by another vehicle or striking fixed property like a tree or a house. Comprehensive is for acts of nature or a vandal. It typically covers theft, vandalism, falling objects (trees or limbs), and other random events.

It is VERY important to note, having full coverage does NOT mean your deductible gets waived when you're not At Fault. Because Michigan is a No Fault state, there are three types of collision coverage you can purchase.

1. Standard Collision - whatever deductible you choose applies regardless of fault. If the other driver causes the collision, you are allowed to recoup up to $500 from him or his insurance company.

2. Broad Collision - whatever deductible you choose is waived if you are not at fault for the accident, but applies if you cause it.

3. Limited Collision - whatever deductible you choose applies. BUT it only pays if the other driver causes the accident. If you are at fault, your insurance will NOT pay for your vehicle damages.

Full coverage does NOT include rental insurance. Some insurance companies automatically provide rental coverage on all their policies, others let you choose if you want it and how much coverage you want.