Broadform Collision Coverage

Broadform collision coverage is a special type of insurance coverage that pays for damages to a driver's vehicle, regardless of who was at fault in an accident. Broadform car insurance is only available in the state of Michigan, so it's a highly specialized type of insurance coverage that most drivers will never encounter. However, it's important to note that the availability of broadform collision coverage doesn't mean that it's required; in Michigan, liability coverage and personal injury protection coverage is required, but broadform coverage is not essential. Michigan drivers can decide whether or not to purchase this special form of insurance, unless they're compelled by an auto loan to buy some form of broadform collision coverage to protect their vehicle.

The reason that broadform collision coverage is helpful in some situations because Michigan operates on a complex no-fault system of automobile insurance. Drivers have to pay for their own costs in an accident, except in very specific circumstances. Broadform collision coverage simplifies the claims process and allows drivers to ensure that any damages to their vehicles will be covered by their insurance policies after an accident. It may be required by some banks when issuing a loan to pay for a car; requiring broadform car insurance enables a bank to protect their investment, so that if the driver ever defaults on the loan, the bank can be assured that they'll be able to recover the vehicle, regardless of whether it has been involved in an accident. Broadform collision coverage limits are often set at the value of the vehicle in these circumstances, so that in an accident in which the vehicle is completely destroyed or "totaled," the driver receives a payout equal to the value of the vehicle.

Drivers should know that a deductible can still apply in a broadform collision coverage claim if the policy owners is found to be more than 50% at fault in the accident. Fault is determined in the state of Michigan by a claims adjuster, who will typically use testimony and pictures from an accident to make a decision about fault. The deductible of broadform car insurance is very important and should be set low for the best possible protection, but higher for drivers looking to keep their car insurance costs down.

Broadform collision insurance is an essential form of protection for Michigan drivers and can have a dramatic effect on car insurance quotes. Michigan drivers should get several quotes before buying broadform collision coverage, especially when compelled to buy this special type of insurance by a vehicle lienholder (a bank or credit union issuing a loan).