Key takeaways
- Michigan no-fault insurance doesn’t pay to fix your car after a crash. Your own collision coverage does, unless your car was properly parked when it was hit.
- Michigan has three kinds of collision coverage: limited, standard and broad form. Which one you have, and your share of fault, decides whether you pay a deductible.
- “Substantially at fault” means more than 50% of the cause of the accident.
- Mini-tort lets you recover up to $3,000 of vehicle damage your insurance didn’t cover from the other driver, as long as you weren’t more than 50% at fault.
- If you carry collision coverage, mini-tort usually means getting your deductible back. Without collision, you may recover up to the full $3,000.
Most states work on a simple idea: the driver who caused the crash pays for the other car. Michigan doesn’t. Under the no-fault system, each driver’s own policy generally pays for their own car, and the at-fault driver’s liability is limited to a capped amount called the mini-tort. Once you see how the pieces fit, it’s a lot less confusing. Here’s the walk-through we give customers at our Birmingham shop.
Why your own policy pays for your car
Every Michigan auto policy includes personal injury protection (PIP), property protection (PPI) and residual liability coverage. None of them pays to repair your own car. Michigan’s Department of Insurance and Financial Services (DIFS) puts it plainly: your no-fault insurance does not pay for repairs to your car if it’s damaged in an accident.
There’s one exception. If your car was properly parked and another car hit it, the other driver’s property protection coverage pays for the damage. Otherwise, DIFS says the only kinds of auto insurance that pay to repair your car are collision and comprehensive. Both are optional under state law, though a lender may require them if your car is financed.
The three types of collision coverage
Michigan law requires insurers to offer new applicants both limited and broad form collision, and lets them offer standard collision too (MCL 500.3037). If you turn down both required options, the rejection generally has to be in writing. The difference between the three comes down to fault and deductibles.
The key term is substantially at fault, which the law defines as being more than 50% of the cause of the accident. If you’re exactly 50% at fault or less, you’re not substantially at fault.
| Coverage type | You’re more than 50% at fault | You’re 50% or less at fault |
|---|---|---|
| No collision coverage | Insurance pays nothing | Insurance pays nothing (mini-tort may help) |
| Limited collision | Insurance pays nothing | Insurance pays, usually with no deductible |
| Standard collision | Insurance pays, minus your deductible | Insurance pays, minus your deductible |
| Broad form collision | Insurance pays, minus your deductible | Insurance pays, and the deductible is waived |
One nuance: limited collision is usually sold without a deductible, but DIFS notes it “may or may not have a deductible.” Your declarations page will tell you which you have. In general, a higher deductible means a lower premium.
Comprehensive is separate
Comprehensive covers theft and damage from things like fire, flood, vandalism and falling objects. DIFS also lists colliding with an animal under comprehensive, which is worth knowing every deer season. Comprehensive usually has its own deductible, separate from collision.
How Michigan’s mini-tort works
Michigan’s no-fault law mostly takes away your right to sue another driver over a crash. One exception is damage to your vehicle. Under MCL 500.3135, you can recover up to $3,000 for damage to your car, to the extent it isn’t covered by insurance. That limit applies to crashes after July 1, 2020. For crashes before that date, the cap was $1,000.
The rules that matter:
- Fault. Damages are assessed on the basis of comparative fault, and you can’t recover if you were more than 50% at fault.
- Uncovered damage only. DIFS explains that drivers with collision coverage can recover only the part their insurance didn’t pay, usually the deductible. Drivers without collision may recover up to the full $3,000.
- Your car must have been insured. The law doesn’t allow mini-tort damages if your vehicle was being driven without the required no-fault insurance.
- Small claims first. The law says these cases must be filed in the small claims division of district court whenever possible.
How to pursue a mini-tort claim
- Gather your paperwork. You’ll need the crash report, the other driver’s insurance information, your repair invoice and proof of what you paid, such as your deductible.
- Send a claim to the other driver’s insurer. The other driver may carry optional limited property damage liability coverage, which pays mini-tort claims made against them. DIFS notes that most insurers offer it.
- If that fails, go to small claims court. In Birmingham, that’s the 48th District Court. Its small claims division hears cases up to $7,000 (since January 1, 2024). The court notes that a vehicle-damage claim against an insured at-fault driver is limited to the amount your insurance didn’t cover, up to $3,000. In small claims, you give up the right to a lawyer and a jury, and either side can move the case to the court’s general civil division before trial.
The court’s page notes that the $3,000 limit applies when the other driver had insurance. If they were uninsured, talk to your insurer or an attorney about your options.
Worked examples
These are simplified examples with round numbers, not quotes. Your own policy terms, deductible and fault finding will decide the real result.
Example 1: The other driver is fully at fault
You’re rear-ended at a light on Woodward. Repairs come to $6,000, and any deductible is $500.
| Your coverage | Your insurer pays | You pay up front | Mini-tort |
|---|---|---|---|
| Broad form | $6,000 | $0 (deductible waived) | Nothing left to claim |
| Standard | $5,500 | $500 | Claim the $500 from the other driver |
| Limited (no deductible) | $6,000 | $0 | Nothing left to claim |
| No collision | $0 | $6,000 | Claim up to $3,000. The other $3,000 is yours. |
Example 2: You’re mostly at fault
Same $6,000 repair, but you’re found 70% at fault. With broad form or standard, your insurer pays $5,500 and you pay the $500 deductible. With limited or no collision, your insurer pays nothing. Mini-tort isn’t available to you because you were more than 50% at fault. The other driver may be able to pursue you for up to $3,000 of their uncovered damage. That’s what limited property damage liability coverage is for, if you bought it.
Example 3: Shared fault
You have standard collision with a $1,000 deductible, and the other driver is found 80% at fault. Because damages are assessed by comparative fault, your mini-tort recovery on that $1,000 would be about $800. DIFS gives a similar example: if the damage is $100 and the other driver is 75% at fault, they may have to pay $75.
Choosing your coverage
A few questions to ask your agent at renewal:
- Which collision type do I have now, and what would broad form cost compared with standard?
- What are my collision and comprehensive deductibles, and could I comfortably pay them tomorrow?
- Do I carry limited property damage liability (mini-tort) coverage?
- Do I have rental reimbursement, and what’s the daily limit?
Under Michigan law, your insurer has to explain your collision options in plain language when you apply, and individual policyholders get a notice about their collision options at renewal. If anything doesn’t add up, DIFS can help at 833-ASK-DIFS (833-275-3437).
How we help
At Cole Street Collision, we handle every part of the insurance claim on your repair, from the first estimate to supplements for hidden damage, and we give you the itemized invoice and photos you’ll need if you pursue a mini-tort claim. Estimates are free, and every repair carries our lifetime warranty. For what to do at the scene, see what to do after a car accident in Michigan.
Sources
- Michigan Legislature — MCL 500.3037, Limited, broad form, and standard collision coverages; “substantially at fault” defined
- Michigan Legislature — MCL 500.3135, Tort liability; exceptions; cause of action for damages (mini-tort: subsections 3(e) and 4)
- Michigan DIFS — Auto Insurance Frequently Asked Questions
- Michigan DIFS — Brief Explanation of Michigan No-Fault Insurance (FIS-PUB 0202A)
- Michigan DIFS — The Three Types of Collision Coverage (FIS-PUB 0200)
- Michigan DIFS — Mini-Tort: An Exception to “No-Fault” (FIS-PUB 0206, pre-2020 limits)
- Michigan DIFS — Contact DIFS
- Oakland County — 48th District Court, Small Claims
- Oakland County — About the 48th District Court
This guide is general information, not legal or insurance advice. Coverage depends on your policy — check with your insurer or Michigan’s Department of Insurance and Financial Services for your situation.