Michigan Auto Insurance 101: Broad vs Standard Collision Deductible - What You Need To Know

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With standard collision, you’re going to be responsible for your deductible any time there’s an accident, regardless of who’s at fault. So if you have a $500 deductible and get into a fender bender, you’ll be responsible for paying that out of pocket before your insurance steps in to cover the rest.

Now, with broad collision, things are a little different. If you're not at fault in an accident, your insurance covers the damage without making you pay that deductible. However, if you are at fault, you’ll still have to pay the deductible, just like with standard collision.

Broad collision tends to have a higher premium because of that added benefit of not having to pay your deductible when you’re not at fault. Standard collision keeps premiums lower, but you don’t get that same break if you're involved in an accident.

Also, keep in mind that if you’re leasing or financing your vehicle, your lender may have specific requirements on which type of collision coverage you carry, so that’s something to check on.

Lastly, both broad and standard collision allow you to choose your deductible amount, whether it’s $500, $1,000, or other options depending on the insurance company you are working with. So there’s flexibility to find a balance between how much you’re willing to pay upfront in premiums and what you’re comfortable paying out-of-pocket if something happens.

At the end of the day, it comes down to personal preference. There’s no right or wrong answer, just what works best for your situation.

If you need help or have questions about your insurance, please feel free to reach out!

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**DISCLAIMER: THIS IS NOT LEGAL ADVICE. USE AT YOUR OWN DISCRETION. THIS VIDEO INCLUDES MICHIGAN INFORMATION ONLY.