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Who Pays the Insurance Deductible in a Michigan Car Accident?

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.

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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?

A woman reads a document intently in a garage as a mechanic waits with paperwork, suggesting a car servicing discussion.

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.

Frequently Asked Questions

Is Michigan Still a No-Fault State in 2024?

Yes. Michigan is a no-fault state. All drivers must have at least the minimum no-fault insurance required by law.

What Happens if I Opt Out of PIP in Michigan?

You can opt out of PIP insurance; however, if you get into an accident, your insurance will not cover your injuries or lost wages. However, Michigan’s new laws offer a lower amount of PIP coverage for lower premiums.

Who Pays Medical Bills After a Car Accident in Michigan?

In most cases, after a Michigan car accident, your insurance will cover your medical bills. However, in certain circumstances, the other driver’s insurance will pay – or you may have a situation where your employer’s insurance might pay if you were driving a work vehicle.

After a car accident, you should consult with an accident attorney to let them handle insurance companies to help negotiate a fair and reasonable settlement, especially if your injuries cause long-term or permanent disabilities.

What Does PIP Insurance Cover in Michigan?

PIP insurance covers several expenses related to car accidents, including:

  • Medical expenses
  • Attendant care
  • Medical mileage
  • Lost wages
  • Replacement services
How Will Your Car Insurance Deductible Impact Your Rate?

When you first get your insurance policy, the insurance company will ask you what you want your deductible to be. If you choose a lower deductible, your premiums are generally higher, but your out-of-pocket costs are lower.

If you choose a higher deductible, your premiums are lower, but your out-of-pocket costs are higher. Choose a deductible that is comfortable for you to pay should you get into an accident and have to pay the deductible.

What if You Can’t Pay Your Deductible?

If you can’t pay your full collision coverage deductible, most repair shops simply won’t start work until you are able to pay the deductible.

If you can’t pay your PIP deductible, your insurance will not cover your medical expenses.