October 29, 2010

How Broadform Collision Coverage Works In The State Of Michigan

In the state of Michigan, auto insurance companies offer a special form of collision coverage known as broadform collision coverage. This can be confusing to drivers who are new to the state, as Michigan is the only state to offer this special form of auto insurance. It's important to understand the differences between broadform collision coverage and other coverage types when selecting a policy.

Broadform collision coverage works the same as other forms of collision coverage in that it pays for damages to your vehicle in an accident. However, it's considered to be a potentially more valuable form of car insurance because of a special condition: if the accident is not the fault of the policy holder, then the policy holder does not need to pay a deductible. The idea behind broadform collision coverage is that there's no reason to hold any driver financially responsible for damages caused to his own vehicle, although it's not the only type of collision coverage available in the state of Michigan. Standard collision coverage, in which a deductible is paid, and limited collision coverage, in which a payout only occurs when the policy holder is not at fault, are also available.

If you're buying a Michigan auto insurance policy, you'll need to think carefully about which type of coverage to buy. There's something to be said for broadform collision coverage, as it's an excellent way to protect yourself in an accident, but it's also very expensive. For an insurance company, it's a big risk, and auto insurance providers that offer broadform collision coverage in the state of Michigan charge a lot for it. Drivers can reduce the cost of broadform collision coverage by keeping their driving records clean. If you're ever issued a traffic citation or if you're involved in an accident, take a quick driving course to avoid any serious change in your auto insurance premiums. If your car insurance company offers an accident forgiveness program, it may be particularly worthwhile when you're paying for broadform collision coverage.

Michigan drivers should consider the difference in auto insurance premiums when choosing a type of collision coverage. The best way to do this is to collect quotes online. Use an insurance aggregate website and check how different types of collision coverage will affect your rates. Some quick math will give you an idea of whether a year's worth of increased premiums for broadform collision coverage will outweigh the potential deductible of a single accident. Choose an option that's right for your car and your driving habits. You'll stay protected without overpaying for your Michigan auto insurance policy.