Effective January 1, 2013 for Business Auto clients, the mini-tort limit of liability will increase from $500 to $1000.  Mini-tort, also referred to as Michigan Property Damage Liability Coverage Buyback, is designed to provide coverage if your client is pursued by another motorist for his/her deductible following an accident. 

Michigan no-fault rules, in simple terms, indicate each party to an auto accident pays for his/her own damage.  However, in cases where it’s concluded one party is at fault in an accident, the not-at-fault party can sue for reimbursement of his or her deductible.  Until now, the limit of coverage one could buy to protect against this minor lawsuit was $500.  As deductibles rose throughout the years, it became evident $500 was inadequate, so the limit is being increased to $1000.

This change took effect for personal auto policies October 1, 2012, and it is now being implemented for business auto policies January 1, 2013.  Should you have questions, feel free to contact your underwriter or field manager.