Collision coverage and liability coverage are two components of auto insurance that are important to understand.
Ask your agent at Ottawa Insurance Agency in Zeeland, MI, to conduct an auto insurance review and walk you through exactly what’s covered under your policy.
What Is a Collision?
In general, a collision means your vehicle hits something or is hit by something else. Collision coverage helps pay for repairs or replacement if your vehicle is involved in one.
What Is Liability?
Liability insurance provides protection when your vehicle causes damage to another person or their property.
Depending on your specific policy, you may have different limits and deductibles for collision coverage versus liability coverage.
Minimum Auto Insurance Requirements in Michigan
Under Michigan law, drivers are required to carry certain levels of auto insurance. Michigan is a "no-fault" state, meaning every driver must carry specific levels of coverage for property damage, injuries, and accident-related costs.
The rules around who pays and how much can differ significantly from states without no-fault requirements, so it’s best to ask your agent to walk you through the details as they apply to your situation.
It’s unlikely that minimum coverage alone will provide adequate protection, but you must carry at least those amounts to legally drive in the state.
For stronger protection, it’s important to carry adequate collision and liability coverage beyond the state minimums, which is why most drivers choose higher limits. Many also add comprehensive coverage for things like theft and vandalism. Michigan’s mini-tort law is worth knowing about as well: it’s a statutory provision that allows drivers to recover up to a certain amount, currently $3,000, for vehicle damage from an at-fault driver when that cost isn’t otherwise covered by insurance.
Reach out to us at Ottawa Insurance Agency in Zeeland, MI. We can help with all your auto insurance needs.
