MI HB5631

Requires insurers to offer two collision coverage options to new applicants for private passenger nonfleet automobile insurance: limited collision coverage with no deductible when the operator is not substantially at fault, and broad form collision coverage with commissioner-approved deductibles that are waived if the operator is not substantially at fault.

Mandates insurers provide written explanation of collision coverage options at initial application and annually at policy renewal, informing policyholders of current coverage status, available options, and procedures to change coverage.

Defines "substantially at fault" as a person's action or inaction being more than 50% of the cause of an accident, and establishes subrogation rights for insurers paying collision damages on behalf of parties not substantially at fault.

Allows tort recovery for motor vehicle damage up to $1,500 under comparative fault standards, with actions to be conducted in small claims court when possible, though liability for such damages is not part of required residual liability insurance.

Maintains restrictions on tort liability for noneconomic losses, limiting recovery to cases involving death, serious impairment of body function, or permanent serious disfigurement, with comparative fault standards applied.