Brooklyn Auto Insurance in Michigan

Knowing where you stand with the law affects greatly your Brooklyn auto insurance policy. Knowing the effects of limited property damage liability on Brooklyn car insurance, in particular, can help you score a more affordable policy. Read on to know how to do just that.

Effects of Limited Property Damage Liability on Brooklyn Auto Insurance in Michigan

Among all fifty states of America, Michigan has the strictest form of no-fault policy. No-fault rule means that after an accident, your insurer will take care of your needs right away, without having to prove who caused the accident. Under this law, a driver can only be sued under these circumstances: If he or she

  1. causes an accident wherein another person is seriously injured or killed;
  2. is involved in an accident within the state in a car not registered in Michigan and there is a passenger who does not reside in this state; or
  3. gets into an accident outside of Michigan and in a state where lawsuits are allowed.

Within Michigan, like in Brooklyn, there is a provision in the no-fault policy that is listed as another situation where one can sue or be sued. This is called limited property damage liability or more popularly known as mini-tort. Under the provision of mini-tort, if you are 50% or more at fault in an accident, the insurance provider of the other party is not obliged to cover everything. You may be sued and asked to cough out a maximum of $500 in damages. Alternately, you may sue the other driver up to the same amount if he or she caused 50% or more of the accident. For instance, if you have a $100 deductible for a standard collision insurance and a third party caused the accident more than 50% of the time; you are allowed to sue the other driver so you may recover deductibles.

A lawsuit that comes about under the mini-tort provision shall be heard in the small claims court of Brooklyn, but may be moved to a higher court if one of the parties request for it. The party who asks for the movement of a case may have to pay court costs in case he or she loses the battle.

If you sue someone under this provision and you win, under Michigan laws, the other party will have to pay you based on rate of fault. This means that if damage was $100 and the accused is at fault 65% of the time, he or she will have to reimburse you $65.

Be reminded though that mandatory no-fault insurance policy as required by the state of Michigan, do not cover this $500 liability. Even if basic coverage includes third-party liability to protect you from serious injury or death, mini-tort is a provision that is totally up to you to purchase. This is an optional coverage that most insurance companies offer to those who would like additional assurance. Ask your insurer today to find out your options.

Local auto insurance quotes in your area can help you compare car insurance quotes for auto insurance coverage in all of the following ZIP codes in Brooklyn


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