The state of Michigan has had many changes to auto insurance coverage and rates this past year. There also continues to be many items up for debate. This year one of those items revolves around the Michigan Mini Tort. With auto insurance policies in the state already being complicated for consumers to understand, this adds one more element or coverage that most drivers are unaware of or don’t understand.
What is the mini tort coverage and why does it exist? With the no fault auto insurance system, there is often confusion as to how claims are handled in the event of a collision accident. For example: if I cause an accident with someone while I’m driving down the road, I would call my own insurance agent to file my claim. What many people don’t understand is that the person whom I hit will also call their own insurance agent to file a claim for their damages. In our state, there is no recourse against the at fault party to repair the damages to the vehicle of the not at fault party. That is, except for the mini tort coverage. This allows the not at fault party to collect up to $500 for their repairs or to pay for a potential deductible charge.
This coverage has recently been increased to $1,000 of collectible coverage. What many people also don’t know is that this coverage is not automatic on all policis – sure, most agents wouldn’t think of not including it in the standard Michigan auto policy but double check with your own carrier. If your agent has overlooked this coverage, you could be on the line to pay the $1,000 out of pocket if you cause an accident.
Again, there are many items going through reform when it comes to the Michigan auto policy. Stay informed so that you continue to be fully protected. If you have questions, make an appointment with your Michigan agent to review your policy.