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Key Takeaways
- Your car insurance deductible is your out-of-pocket expenses related to a vehicle crash.
- If you are not at fault for your Michigan car accident, you may not have to pay a deductible.
- Your personal injury protection coverage through your Michigan no-fault insurance will pay your medical bills and other losses.
- Your collision insurance will pay for damages to your vehicle unless the accident is the other driver’s fault.
A car accident in Michigan is stressful enough. You’re already dealing with injuries and emotional stress. The last thing you need is to worry about insurance claims and deductibles. Learn more about Michigan’s no-fault coverage, how to determine your deductible after a car accident, and who is responsible for these costs.
What is a Car Insurance Deductible?
In a nutshell, a car insurance deductible is what you pay out of your own pocket on a claim. Your insurance covers the rest. All types of insurance, whether PIP, uninsured motorist, comprehensive, or collision, may have a deductible. You can choose between several deductibles — the higher it is, the lower your premiums in most cases. However, you may have to come out-of-pocket for that high deductible, so choose carefully. Check your policies to determine what deductible you may be responsible for paying after an auto accident.
Call us today for FREE to get help with your auto accident claim: (866-226-6833)
Who is Responsible for Paying the Deductible?
The deductible is the amount you must pay before your insurance covers anything.
- For injuries: You are responsible for paying your PIP deductible before your insurance starts covering your accident-related injuries.
- For motor vehicle damage:
- Limited collision coverage: If you have broad form or limited collision coverage, you don’t have to pay the deductible if you are less than 50 percent at fault for the accident.
- Standard collision coverage: If you have standard collision coverage, you pay the deductible even if you are not at fault.
Your Deductible Depends on Your Insurance Coverage
Whether you pay a deductible depends on the type of insurance you have and whether you are more or less than 50 percent at fault for the accident.
Property Damage Deductible
Collision coverage is not part of no-fault auto insurance. It is something you must purchase on top of your no-fault insurance. It covers any damage to your vehicle, no matter who is at fault for the accident. However, if the other driver is at fault, his or her insurance could cover your property damages (vehicle) expenses.
How Do Collision Coverage Deductibles Work?
Collision coverage can have deductibles from $250 to $1,000 in most cases. The deductible covers only what collision coverage covers. If you have a deductible of $500 and the accident caused $5,000 in collision damages, you would pay $500, and the insurance would pay $4,500.
Personal Injury Protection (PIP) Deductible
Your PIP deductible is the amount you must pay out-of-pocket for medical treatment before the insurance company will start covering your expenses. Your deductible depends on your particular plan, but generally speaking, the lower your monthly payment, the higher your deductible.
There is no maximum PIP deductible in Michigan. Be careful when choosing your policy; if you cannot cover your deductible after an accident, your auto insurance company will not pay for your medical expenses.
Related Article: Michigan Personal Injury Protection (PIP) Guide
Who Pays for Car Damage Under Michigan’s No-Fault Insurance Laws?
If you are at fault in a car accident, it’s your responsibility to pay for damages to your car, either yourself or through your insurance company. If you have comprehensive insurance, your insurance company will cover the damages to your car after you pay the deductible.
If you are not at fault and have broad form or limited collision coverage, your deductible is waived. To pay for your damages, you can file a claim with the at-fault driver’s insurance company. If the driver doesn’t have insurance, you can use uninsured or underinsured driver coverage to cover your losses or file a lawsuit against them.
Related Article: Guide To Filing Property Damage After a Michigan Car Crash
Why Clients Choose Matz Injury Law
At Matz Injury Law, we are committed to helping accident victims recover. We meet our clients where they are, whether that means driving across Michigan to see them in person or connecting over Zoom. We have decades of experience helping Michigan drivers and have earned over $300 million for our clients over that time. When you work with Matz Injury Law, you always work with a partner. We listen to our clients’ needs and work to maximize the outcomes of settlements and lawsuits. Not only that, we are committed to keeping more money in your pocket. That’s why we charge 22% of your settlement, not the industry standard of 33 ⅓%.
Learn more about our “22 not 33” promise.
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Take Charge of Your Claim: Understand Deductible Payments in Michigan Car Accidents
Don’t let the complexities of Michigan car insurance hold you back after an accident. Contact a skilled Michigan car accident attorney for help handling insurance companies and paperwork. Call Matz Injury Law at 1-866-22NOT33 (866-226-6833) or use our convenient online contact form to schedule a free consultation. Let us guide you through the process of recovering the compensation you deserve.
Written By Steven Matz
Steven J. Matz is the founder of Matz Injury Law, specializing in personal injury litigation with a focus on car accident victims. With over 40 years of legal experience, Mr. Matz has achieved numerous million-dollar settlements. He holds an AV Preeminent rating from Martindale-Hubbell and has been recognized among Michigan’s Top Attorneys. Steven J. Matz is a frequent lecturer on legal ethics and personal injury law, and serves on the Michigan Attorney Discipline Board.
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