In Michigan’s no-fault insurance system, drivers are typically responsible to pay for damage to their own cars. The idea is that the system will run much smoother, since we won’t be suing each other for damage to our cars. For the most part it works. However, in a couple of different situations you may be required to pay another drivers damage to their car or pay their deductible to get their car repaired, if it can be shown that you are responsible for the damage. In these situations, you want to make sure that you have Limited Property Damage coverage or “Mini-tort” as it is sometimes called.
Consider this Limited Property Damage (Mini-tort) example:
-Let’s say that you didn’t notice the car in front of you slowed for a red light and you accidently bumped them causing minor damage to their rear bumper.
-And let’s say that the other driver did not have comprehensive or collision coverage.
-If it can be shown that you were responsible for the damage, the other driver could file a “mini-tort” to make you pay for the damages to their car.
-Currently, the State of Michigan limits the amount they can collect up to $1,000.
-If you were to select “yes” to the “Limited Property Damage”, you will be asking the insurance company
to pay the other driver up to $1000 (in our example).
-Otherwise, you would need to pay the $1000 out of your pocket.
Limited Property Damage coverage is very inexpensive and takes the worries out of a Michigan no-fault “mini-tort” claim. iSCHURING recommends that you always select “yes” when quoting this coverage.
For more information or help, Call Us Today at 269-381-9442 or 1-888-378-7464 and one of our iSCHURING agents will be glad to assist.
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