Broad Form Collision vs Regular Collision in Michigan: What's the Difference?

When you add collision coverage to your Michigan auto policy, your agent will ask which type you want: Broad Form, Standard, or Limited. Most drivers have no idea what the difference is — and the wrong choice can cost you thousands after an accident. Here's a simple breakdown of each option and how to choose the right one.

The Three Types of Collision Coverage in Michigan

1. Broad Form Collision ("Broad")

Broad Form Collision is the most popular choice among Michigan drivers — and for good reason. It covers damage to your vehicle regardless of fault, and your deductible is waived if you are less than 50% at fault.

• Covers your car if you cause the accident
• Covers your car if someone else causes the accident
• Deductible is waived when you're not primarily at fault
• Slightly higher premium than Standard or Limited

Best for: Most Michigan drivers, especially those with newer or financed vehicles who want the broadest protection.

2. Standard Collision

Standard Collision also covers your vehicle regardless of fault, but your deductible always applies — even when the other driver is 100% at fault.

• Covers your car if you cause the accident
• Covers your car if someone else causes the accident
• Deductible never waived — you pay it every time
• Moderate premium — cheaper than Broad, more expensive than Limited

Best for: Drivers with older, paid-off vehicles who want collision protection but are comfortable paying their deductible even when not at fault.

3. Limited Collision

Limited Collision is the most restrictive option. It only covers your vehicle when you are not at fault — and only if the at-fault driver can be identified. If you cause the crash, you get nothing.

• Covers your car only if someone else is at fault
• No coverage at all if you cause the accident
• Deductible is waived when the other driver is identified and at fault
• Cheapest collision option

Best for: Older vehicles with low value, or drivers who are extremely confident they won't cause an accident and want to save every dollar possible.

How the Deductible Works in Each Scenario

Situation	Broad Form	Standard	Limited
You're not at fault, other driver identified	✅ Covered, ✅ deductible waived	✅ Covered, ❌ deductible applies	✅ Covered, ✅ deductible waived
You're not at fault, hit-and-run	✅ Covered, ✅ deductible waived	✅ Covered, ❌ deductible applies	❌ No coverage
You're at fault	✅ Covered, ❌ deductible applies	✅ Covered, ❌ deductible applies	❌ No coverage
Single-car accident (your fault)	✅ Covered, ❌ deductible applies	✅ Covered, ❌ deductible applies	❌ No coverage

Why Most Michigan Agents Recommend Broad Form

The premium difference between Broad Form and Standard is usually only $50-$150 per year — but the deductible waiver can save you $500, $1,000, or more after a single not-at-fault accident. For most drivers, Broad Form is the obvious value choice.

Standard makes sense only if you're confident you'll never be in a not-at-fault accident where you'd want the deductible waived — which is hard to predict. Limited makes sense only for very old vehicles where the premium savings outweigh the risk of getting nothing if you cause a crash.

What If You Don't Carry Collision at All?

Michigan does not require collision coverage — it's optional. But if you have a car loan or lease, your lender almost certainly requires it. Even if you own your car outright, dropping collision only makes sense when the vehicle's value is low enough that a total loss wouldn't hurt your finances.

How to Choose Your Deductible

Once you pick Broad, Standard, or Limited, you'll also choose a deductible:

• $100 — lowest out-of-pocket, highest premium
• $250 — low out-of-pocket, moderate premium
• $500 — the most common choice for Michigan drivers
• $750 — middle ground, solid premium savings
• $1,000 — saves $100-$300/year for most drivers
• $1,500 — maximum premium savings if you can self-insure

If you have an emergency fund that can handle a $1,000 hit, the higher deductible often pays for itself within two years.

Get a Free Michigan Auto Insurance Review

Knight Family Agency reviews every driver's collision coverage during a quote — including whether Broad Form, Standard, or Limited makes sense for your vehicle, budget, and risk tolerance. Fill out our quote form and we'll walk you through every option.