No one enjoys paying for auto insurance, in particular when they are paying too much. Drivers have so many insurers to choose from, and although it’s a good thing to have multiple companies, it can be more difficult to find the best rates for your vehicles.
Smart consumers take time to take a look at other company’s rates once or twice a year since insurance rates trend upward over time. Just because you had the best price on your last policy the chances are good that you can find a lower rate today. So block out anything you think you know about auto insurance because you’re about to learn the best methods to find lower rates on auto insurance.
Car insurance companies do not advertise all available discounts very well, so we researched some of the best known and the more hidden discounts you could be receiving. If you don’t get every credit you qualify for, you’re just leaving money on the table.
Keep in mind that most discounts do not apply to the overall cost of the policy. Most only reduce the cost of specific coverages such as medical payments or collision. So even though it sounds like you would end up receiving a 100% discount, you’re out of luck.
For a list of companies who offer auto insurance discounts in Michigan, click here to view.
All the larger auto insurance companies quote coverage price quotes directly from their websites. Getting online quotes is fairly straightforward as you simply type in your coverage information as detailed in the form. After you complete the form, the company’s rating system will obtain your driving and credit reports and quotes a price. Being able to quote online helps simplify price comparisons, but the time it takes to visit different websites and type in the same information is monotonous and tiresome. Unfortunately, it is important to perform this step if you are searching for the lowest auto insurance rates.
Compare rates the easy way
A quicker way to get multiple rate quotes uses one simple form that gets prices from several different companies. The form is fast, eliminates repetitive work, and makes online price comparison a lot less work. Once the form is submitted, your coverage is rated and you are able to buy your choice of the returned quotes. If the quotes result in lower rates, it’s easy to complete the application and buy the policy. It can be completed in less than 10 minutes and you’ll know if lower rates are available.
If you want to use this form to compare rates, click here to open in new window and submit the form. If you have coverage now, it’s recommended you copy deductibles and limits just like they are on your policy. This way, you’re receiving a fair comparison using the same coverage and limits.
Michigan consumers can’t ignore all the ads for car insurance savings from companies such as State Farm and Allstate. All the companies have a common claim about savings after switching your policy.
But how can every company make almost identical claims?
All the different companies have a preferred profile for the driver they prefer to insure. For example, a desirable insured might be profiled as over the age of 40, has no driving citations, and has a short commute. Any driver who fits that profile will get very good rates and therefore will save quite a bit of money when switching.
Drivers who don’t measure up to this ideal profile will be quoted a more expensive rate and ends up with the driver buying from a lower-cost company. The ads state “drivers who switch” not “people who quote” save that kind of money. That’s the way insurance companies can advertise the savings. This emphasizes why it is so important to compare as many rates as you can. It’s impossible to know the company that will provide you with the cheapest rates.
Learning about specific coverages of auto insurance can be of help when determining which coverages you need and the correct deductibles and limits. The terms used in a policy can be difficult to understand and reading a policy is terribly boring. Below you’ll find the usual coverages available from auto insurance companies.
Comprehensive (Other than Collision)
This coverage pays to fix your vehicle from damage caused by mother nature, theft, vandalism and other events. You need to pay your deductible first then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage protects against things like a broken windshield, hitting a deer, hitting a bird and rock chips in glass. The highest amount you’ll receive from a claim is the ACV or actual cash value, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.
Liability insurance provides protection from injuries or damage you cause to a person or their property that is your fault. Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. Your policy might show limits of 50/100/50 which means $50,000 bodily injury coverage, a limit of $100,000 in injury protection per accident, and property damage coverage for $50,000.
Liability coverage pays for claims such as repair bills for other people’s vehicles, emergency aid, structural damage, court costs and legal defense fees. The amount of liability coverage you purchase is a personal decision, but you should buy as much as you can afford. Michigan requires drivers to carry at least 20,000/40,000/10,000 but you should think about purchasing more liability than the minimum.
This coverage pays to fix your vehicle from damage resulting from colliding with a stationary object or other vehicle. A deductible applies then the remaining damage will be paid by your insurance company.
Collision coverage pays for claims like colliding with another moving vehicle, rolling your car, sustaining damage from a pot hole, driving through your garage door and backing into a parked car. Paying for collision coverage can be pricey, so consider dropping it from lower value vehicles. Another option is to increase the deductible to bring the cost down.
Medical expense insurance
Personal Injury Protection (PIP) and medical payments coverage provide coverage for bills like ambulance fees, funeral costs and chiropractic care. They can be used to fill the gap from your health insurance program or if you lack health insurance entirely. They cover not only the driver but also the vehicle occupants and will also cover being hit by a car walking across the street. PIP is only offered in select states and may carry a deductible
Protection from uninsured/underinsured drivers
This protects you and your vehicle’s occupants when the “other guys” either are underinsured or have no liability coverage at all. It can pay for injuries sustained by your vehicle’s occupants as well as your vehicle’s damage.
Due to the fact that many Michigan drivers only carry the minimum required liability limits (20/40/10 in Michigan), their limits can quickly be used up. For this reason, having high UM/UIM coverages is important protection for you and your family.
As you restructure your insurance plan, do not skimp on critical coverages to save a buck or two. There have been many situations where an insured cut full coverage and discovered at claim time that the few dollars in savings costed them thousands. The aim is to get the best coverage possible at the best price while still protecting your assets.
We just showed you a lot of techniques to lower your auto insurance rates. It’s most important to understand that the more times you quote, the higher the chance of saving money. You may even discover the lowest premiums are with a small local company. These companies can often provide lower rates in certain areas than the large multi-state companies such as Progressive or GEICO.
Even more information is located at the Michigan Office of Financial and Insurance Regulation website. Visitors are able to read industry bulletins, read enforcement actions against agents and companies, get help finding coverage, and view a list of available companies.