IPS / Lighthouse Insurance Group Blog: limited property damage liability
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WEDNESDAY, JUNE 27, 2012
Effective October 1, 2012, House Bill 5362 amends section 3135 of Michigan's No Fault Act (MCL 500.3135). The bill increases the amount that an insured motorist may recover from an at-fault driver for vehicle damage that was not covered by insurance, provided the party seeking recovery is no more than 50% at fault and was insured at the time of the accident. A driver will now be able to recover up to $1,000 of out-of-pocket expenses from his collision deductible. The previous limit of recovery had been $500 since 1995. This mini-tort provision clarifies that an uninsured driver is not entitled to recover damages under this section.
Drivers can purchase coverage on their Michigan Auto Insurance policy to cover their financial responsibility in the event they cause an accident that damages another motor vehicle. Some insurance companies call the coverage Mini-Tort Liability and others call it Limited Property Damage Liability. The owner of not-at-fault vehicle can collect the lesser of (1) the dollar amount of damage to his car, (2) the amount of his deductible, or (3) the recovery limit set forth in the law.
Now is a good time to review your auto insurance policy to be certain it includes this coverage. It is not a coverage required by law, but it will make you much happier if you find yourself in a situation where someone is coming to you to collect this money for damaged you did to their vehicle.
The professionals at Insurance Planning Service can help you make certain this is part of your Michigan auto insurance. Call us today at 800-220-5582 or use our online contact form.