Car, Home, Toys, and Life Insurance Resource Center

Welcome to the best Michigan insurance resource! Michigan has the most unique insurance laws in the United States. Learn about what it takes to be insured properly as a Michigander. Get saving tips, mandatory coverage amounts, and answers to many frequently asked questions.

Insurance Where You Live


20
Jun 14

5 Ways to Make Car Insurance Go Up

You get your car insurance paperwork in the mail and your old rate has gone up. What happened? Sometimes it has nothing to do with anything you have done. Insurance companies regularly adjust their rates according to overall losses. Michigan sees a lot of rate increases due to the MCCA fee. As more and more people file claims against the unlimited medical coverage, the charge for the coverage needs to go up to cover the costs. Sometimes your rate increase is directly correlated to something you have done. Check out the top five ways to make car insurance go up.

Cause an Accident and File a Claim: Some insurance carriers charge more for any type of claim filed. It is actually becoming more and more common to see comprehensive claims raising rates. Currently, it really depends on the insurance carrier. It is certainly good to know whether your insurance carrier surcharges for comprehensive claims, make sure to ask.

On the other hand, an at-fault claim almost always comes with a surcharge. It really does not matter how much your claim is for. A good thing to keep in mind is the surcharge is the same whether your claims is for $1,000 or $20,000. How much the surcharge is for an at-fault accident is very hard to determine. Your insurance agent may not even be able to tell until your insurance policy renews.

Get a Traffic Violation Ticket: Traffic violations can have a big impact on your car insurance rates. The bigger the violation the bigger your increase. Expect a minor violation to stay on your record between two to three years. A major violation such as a DUI can cause your policy to be non-renewed. At that point you need to start shopping for an insurance company which covers high risk drivers. Plan on paying a higher price for the same coverage too.

Have a Lapse in Coverage: Letting your car insurance lapse is always a bad idea. In Michigan,any period of lapse is not good. If you are within thirty days of a lapse, call your insurance carrier and request to be reinstated. You may be required to pay a small fee along with a couple months worth of payments. If you are over thirty days of a lapse, you will most likely be considered high risk. You will be charged a higher rate for six months to get your preferred driving status back.

Make a Late Payment: Paying car insurance late usually means you will be charged a late fee. It can be a surprise to get your insurance payment in the mail and see a $10 increase. If you paid late last month, the late fee is added onto the following month. $10 is an example, check with your insurance agent to see how much a late fee costs.

Move: A lot of people are shocked to realize the difference in auto rates based on where you live. Moving can move your rates up or down depending on where you are relocating. Moving from the outskirts of Grand Rapids to the inner city of Detroit could be a large difference in premium. Moving out of the state of Michigan would most likely reduce your rate greatly because of Michigan’s expensive unlimited medical coverage. Prepare for changes in car insurance premium if you are planning on moving.

Knowing what causes insurance rates to go up, can help you prevent it from happening.

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02
Jun 14

How to Get a Low Car Insurance Down Payment

Car insurance costs can be expensive, especially in the state of Michigan. Lots of people choose to pay monthly on their car insurance to make it fit into their budget. Sometimes when you are getting quotes for car insurance the initial down payment can be a real shocker. Some insurance carriers want payment in full for six months, some want two months down, and some will offer one month down, it really depends on the insurance carrier, your method of payment, and your prior insurance history.

So how do you get the lowest car insurance down payment possible?

Payment Method: The most common way to get the lowest down payment is to select automatic withdraw as your payment method. It is also referred to as electronic funds transfer or EFT. This is where the insurance carrier pulls your monthly payment directly out of your checking or savings account. EFT payments have more benefits than a low down payment. It also allows you to avoid payment fees and late fees.

Prior Insurance: Whether or not you have had insurance for the past six continuous months at the time you purchase a new insurance policy can affect your down payment. If you have had a lapse of coverage, it is going to be difficult to find a one month down payment car insurance policy. Always do whatever you can to keep an active insurance policy in place.

Get more helpful tips on reducing your overall car insurance costs. A lot of factors go into determining your car insurance rate. Lowering your overall insurance costs will also lower your down payment. Check out: “The Ultimate Guide to the Cheapest Car Insurance”.


05
Apr 14

Can I Add a Motorcycle to My Car Insurance Policy?

In Michigan, a motorcycle insurance policy and a car insurance policy are kept separate. It comes down to a difference in medical coverage. Motorcycles are excluded in Michigan’s no fault coverage, meaning they are not eligible for unlimited medical coverage when filing a claim against their own policy. Motorcyclist have the option of purchasing medical pay and medical benefits in increments of $5000.

Motorcycle Policy Features
Add Motorcycle to Car Insurance

  • Renews Annually
  • Liability
  • Comprehensive
  • Collision
  • Roadside Assistance
  • MCCA Fee is Required

Why do I have to pay the MCCA Fee to insure a motorcycle in Michigan?

Even though motorcycles are not eligible for unlimited medical coverage under their own insurance policy, they are eligible if a car is involved. How is that possible? Well, when a motorcycle is in a collision with an automobile in Michigan, that automobile insurance policy must pay unlimited medical expenses on the motorcyclist and passengers. And it does not matter if it was the motorcyclist’s fault, the auto involved is the policy which pays.

Example 1: You are on your motorcycle. A deer jumps out from the grass and you lay your bike down going 50 mph. Along with major road rash you break your collar bone, several ribs, and fracture your hand. Several surgeries are required in order to get you back to normal. Your medical pay or medical benefits coverage from your motorcycle insurance policy will kick in to cover the costs up to your listed limit. Your primary health insurance through your employer could possibly pick up any slack.

Example 2: Your car is legally parked on the side of the road. A motorcyclist not wearing a helmet is speeding and hits an unexpected pothole. He crashes into your parked car and damages his spine. Your car insurance policy will cover the medical expenses with no cap on the coverage.

Ways To Save

Even though you cannot add a motorcycle to your car insurance policy, you can still benefit from insuring your motorcycle and car with the same insurance company. Usually the motorcycle policy will be eligible for a multi-policy discount when you also insure your car. You could also combine billing if you go through the same carrier. Combining bills often reduces billing fees, saving you both time and money.

What about other states?

Other states do not have Michigan’s complicated no-fault laws which make unlimited medical coverage mandatory for all autos on the road. Therefore in some other states adding a motorcycle to an auto policy is completely acceptable and often the cheapest route to insure your bike. When adding a motorcycle to a car insurance policy, the motorcycle takes on the same liability coverage as the autos listed. If that is not what you want, you will need to look for a separate motorcycle policy.

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How to Get a Home Insurance Quote MI Helmet Laws Moving to Michigan and Car Insurance

27
Dec 13

The 10 Commandments of Car Insurance

Follow the 10 commandments of car insurance in order to save money and obtain the best coverage.

  1. Be Honest: Honesty is the best policy when it comes to car insurance. Trying to save money by omitting information or twisting the details of an accident when filing a claim is considered insurance fraud. Being dishonest could result in your insurance claim being denied, or you could even face prosecution.
  2. Know and Understand the Coverage: You cannot properly purchase and use a car insurance policy you do not understand. Do a little research before selecting the coverage for your vehicle. Lots of different coverage is available. Learn what each coverage protects against.
  3. Determine the Right Deductible: Deductibles can be tricky. You want to select a deductible which is low enough to be affordable at the time of a claim, but high enough to reduce the overall cost of insurance. Keep your emergency fund in mind when selecting your deductible. It can be very frustrating to sustain damage to your vehicle and not be able to get it repaired because you cannot afford your deductible. Deductibles are on the rise for many drivers to make car insurance a little more affordable.
  4. Purchase Only the Coverage You Need: Do not over insure your car. Know your car’s value by checking Kelly Blue Book. The cost of comprehensive and collision should not be a major portion of the value of your vehicle. Remember you have a deductible too. Give some consideration to extra insurance coverage like roadside assistance and car rental. Try to determine if the cost is worth the risk. Look for alternatives like borrowing a friend’s car.
  5. Check Your Discounts: It never hurts to double check your discounts. It is possible to qualify for new discounts during your policy period. For instance, if you purchase a home and insure it through your car insurance carrier your car insurance and home insurance are most likely eligible for a multi-policy discount. Discounts can be added at anytime.
  6. Maintain a Good Credit Score: A good credit score is becoming more and more important in the insurance world. The difference in premium can be shocking when comparing the insurance rate of a person with bad credit verse one with bad credit. Insurance carriers have statistical data which shows people with bad credit are more likely to file a claim. Whether you agree or not, as of right now credit is a car insurance factor in most states. As your credit improves, your car insurance rate should improve. Changes will only be reflected when your insurance policy renews.
  7. Know Your Agent: Getting to know your insurance agent can prove to be very beneficial. The better your insurance agent knows you and your family’s needs, the better he or she will be able to guide you to the best insurance policy. Your insurance agent will be more likely to work harder for you if he or she knows your story.
  8. Pay On Time: Expect to pay late fees anytime you pay your car insurance late. Some insurance carriers offer one to three days as a grace period with no fee, but anything beyond that and the fee could range from $5 to $15. For many people, it is very difficult to catch up once a late payment is made. Paying the late fee month after month gets very expensive. Paying on time could save you over one hundred dollars a year in fees.
  9. Never Let Your Policy Lapse: A lapse in car insurance can be very expensive. Get into a car accident while your policy is lapsed and you could be looking at serious financial consequences. If you are at fault you could be held liable, and if you are not at fault you could still be facing some serious fines for driving without insurance. Beyond liability and fines you will also pay more for insurance when you go to purchase it again. If at all possible, never let your car insurance policy lapse.
  10. Review Your Policy: It can definitely help to give your car insurance policy a once over. Maybe you need to refresh your memory as to what coverage you have selected. Maybe you want to see what discounts are on your policy. Maybe you are curious when your speeding ticket falls off. All of these issues can be settled by reviewing your policy. Taking a quick look could save you money and possibly confusion at the time of a claim.

    1. Tips for Saving on Car Insurance

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16
Dec 13

At What Age Does Car Insurance Go Down?

A lot of factors go into determining your car insurance rate. One of those factors is age. If you are a young driver, you may be wondering when you are going to see some relief and have your car insurance go down. The good news is there is a cutoff age car insurance rates adjust.

Age Groupings:

Every insurance carrier has its own age groupings. Some use smaller groupings and adjust rates more frequently, while others use larger age brackets. Even with all the different brackets available, one age still stands to be the best for a reduction in premium. 25.

Why 25?

Twenty-five is the age statistical data shows a decrease in likelihood of a claim being filed. Let’s face it, 16 to 18 is certainly a shaky at best time for most drivers. It takes years of driving to gain the experience needed to become a defensive driver. 19 to 24 is a time of growth and for many includes college and possibly minimal driving.

How much will your rate go down?

Unfortunately, I cannot give an exact dollar amount for how much your rate will decrease. It just varies too much per insurance carrier and it can vary per person too because rates are highly individualized. If you have never seen a decrease in the past, you could be looking at a sizable change. It is possible to get an idea about how much your insurance rate will change by calling your insurance agent. Ask your agent if a new quote can be run with your age being listed as 25.

I turned 25 and my rate did not go down.

A couple of different things could be going on here. One, rates do not change until policy renewals. Your rate will not change on your birthday. You can either wait for your renewal or start a new car insurance policy to get the decrease faster. Or two, some other factor has actually increased your rate. A traffic violation, at-fault accident, or overall insurance carrier rate increase has eaten up your rate decrease. On the bright side, your rate increase would have been even larger had it not been for hitting the premium lowering age of twenty-five.

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11
Dec 13

Michigan Insurance Quote Scorecard


Michigan Insurance Quote Scorecard

Have you ever gotten several insurance quotes and still felt undecided about which one was the best? I created this Michigan insurance quote scorecard to help with just this situation. Right click the scorecard and select print. Print a copy for each insurance company you plan to get a quote from.

Using a scorecard will walk you through important considerations to make when talking to a prospective insurance agents. It will also give you something to review later on once you have received all of your quotes. I gave the price category more stars because price is usually the most weighted factor in selecting an insurance provider.

Hopefully this scorecard will help keep you organized and informed when it comes to selecting the best insurance quote. If you are particularly impressed or deeply dissatisfied with a particular quote, you could even mail the scorecard to the agency to let them know how you rated them. Insurance is an important part of your financial life. Making a good choice as to which insurance company insures you could make a big impact on your financial future.


21
Nov 13

How Often Do You Shop for Car Insurance Quotes?

When is the last time you got a car insurance quote? Maybe it was recently, or maybe a couple of years ago you were checking around. But what if it has been 10, 15, or even 20 years since you last car insurance quote? Now that is loyalty! With all the insurance carriers available today, it is very tempting to check around. It can also potentially pay off big time.

Everyone likes a little loyalty in their lives. Switching insurance every six months can certainly become a hassle and that is not what I am recommending. Maybe you love your insurance agent and never plan to leave. That is okay, you do not have to leave, however it is still nice to know what is out there so you can have a serious talk with your current agent.

It is time to get a quote if:

  • You’ve been with your current carrier for 5 years or more
  • Your insurance rates sky rocket
  • Not satisfied with your insurance carrier or agent

I like my agent. I like my insurance carrier too. Sure there have been some fluctuations with price, we do live in Michigan with the ever increasing MCCA fee. I still check around with other insurance carriers every three years or so just to make sure I’m in the ball park of a competitive rate. I usually check with three different carriers to help determine what the going rate is for my driver risk. At this point I have been with the same insurance carrier for eight years! So, you don’t always have to switch, but be an informed car insurance shopper to save money for your family.

Learn More About Michigan Car Insurance Coverage

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18
Sep 13

Why is the MCCA Fee So Expensive?

The MCCA Fee, Michigan Catastrophic Claims Association, is a major expense when it comes to Michigan car insurance. Currently, the MCCA Fee runs $150 per year per insured vehicle. It is a huge annual expense for Michigan residents especially when multiple vehicles are being insured. So what makes the MCCA fee so expensive?

When injury occurs in a Michigan automobile and the cost exceeds $530,000 the MCCA fee kicks in to cover additional costs with no limit. This includes residential and attendant care. If a young person has spinal cord or brain injury, their medical expenses and care will be covered for the remainder of their life. Since 1979 more than 32,600 claims have been filed. In 2012 alone nearly a billion dollars was paid out.

Just over 30,000 claims may not seem like so many over the course of 30 years, but with an unlimited price tag the cost is huge. The cost to Michigan insured drivers will continue to go up as long as there is no cap on pay out. More people will be injured every year and the claims from the past continue to be paid out.

The way I like to look at it is we pay the most, but if you are ever injured, Michigan is the state to be in. Your medical financial expenses will be covered for a lifetime in severe cases. I suppose I’d rather be the one to contribute to the fund without ever using it, verses actually filing a claim. What do you think about Michigan’s unlimited medical fund?


31
Jul 13

The Ultimate Guide to Cheap Car Insurance

In order to score a cheap car insurance policy, you need to become a valuable asset to insurance carriers. A lot of different factors go into becoming the best insurance client imaginable. What would the perfect insurance client look like? How do you become the person who gets the lowest rates? The ultimate guide to cheap car insurance will give you a detailed explanation of how car insurance rates are calculated and how you can get the cheapest insurance rate available in Michigan and beyond.

Insurance Carriers Want Low Risk Clients

Money in Pocket

A low risk client is a client who has very low potential to file a claim. Claims cost insurance companies money. The more claims you file the less profit they earn overall. How does an insurance company know who is a low risk and who is a high risk? Well, they have determined lots of different factors which can somewhat predict the likelihood of a claim. Know the factors and try your best to get on the low risk end to get the cheapest car insurance possible.

Most Risk Factors Translate into Discounts

Qualifying for every single car insurance discount is impossible. More than likely, a person receiving a senior citizen discount is not also going to receive a good student discount. Discounts are a huge part of calculating car insurance rate. How the discounts stack up can make the difference between a cheap car insurance rate and a hefty price tag.

  • Financial Stability Discount: Lots of states allow your credit score to be used as a basis for a big car insurance discount. Michigan is one of them. The better your credit, the better your car insurance rate. The financial stability discount is based on more factors than just your credit score, but insurance carriers keep the exact details under wraps. The best thing you can do to get this discount is work on your credit score. Keep on top of your bills and pay off any outstanding bills.
  • Multi-Policy Discount: It is easy to get a multi-policy discount and it is usually a big credit. Insure more than one thing such as an auto and home or auto and motorcycle with the same insurance carrier and qualify for a multi-policy discount. Always verify you are receiving this discount because occasionally it can slip through the cracks.
  • Multi-Car Discount: Multi-car discount means you have more than one vehicle insured. This discount is usually automatically applied. Be sure to let your insurance agent know if you use an employer vehicle because sometimes you can get the multi-car discount for it.
  • Home Owner Discount: This can surprisingly large discount. Insurance carriers love home owners. One, because you can potentially insure both your auto and home. Two, because home ownership requires a lot of stability and responsibility. You probably will not run out and buy a home just to save money on car insurance. However, it is something to keep in mind as a future possibility.
  • Accident Free Discount: No claims equals cheaper insurance rates. It often takes three years for an insurance carrier to stop surcharging you for an at-fault accident. Go five years and more without an at-fault claim and you will probably be eligible for an accident free discount. Often, this discount is applied per driver. Become a defensive driver and reap the cheap car insurance benefits.
  • Violation Free Discount: Most people know traffic violations increase your car insurance rates. The length of time a ticket stays on your insurance record varies per insurance carrier. Many will surcharge for two years and offer a violation free discount after five years of no violations. This discount really is a must-have when it comes to getting cheap car insurance.
  • Membership Discount: Belong to a credit union or bank? Most insurance carriers offer a membership discount. The list of associations which qualify vary per insurance carrier. Ask your agent to see if you are eligible for a membership discount. Every little bit helps!
  • Low Mile Discount: A low mile discount is becoming more rare these days, but some carriers still offer it. Drive you car less than 10,000 miles a year and you could qualify. Some insurance carriers want you to verify your speedometer reading every insurance renewal to qualify. And newer technologies which actually plug into your car can track mileage for the insurance carrier.
  • Farm Discount: Farmers often qualify for a special farm discount on auto insurance. In order to receive this discount you need to work on a farm. The farm discount on an auto policy is usually even better than the low mile discount. Check with your insurance carrier to see if this discount is available.
  • Good Student Discount: Drivers under the age of 25 and enrolled full time in school can potentially get a good student discount. Grade point average requirements are usually 3.0 or better. Encourage young drivers to keep their grades up in order to keep their car insurance rates down.
  • Senior Discount: Seniors between the ages of 50 and 65 are often eligible for a senior discount. People is this age bracket are considered to be at a lower risk for filing a claim according to extensive research. Seniors often drive slower and have less distractions.
  • Seat Belt Discount: Seat belts save lives. They also reduce medical expenses. Especially in a no fault state like Michigan with unlimited medical payout, reducing injury is huge. Usually this discount is automatically given out without any type of verification since it is the law in Michigan it wear it.
  • Air Bag Discount: Again, air bags reduce injury so insurance carriers offer discount based on air bags. Most air bag discounts are set up the same regardless of how many air bags are actually in the vehicle. Older model vehicles will pay a higher rate for medical verses a model with an air bag.
  • Anti Theft Discount: Lots of carriers offer a discount for an anti theft device, however the discount can be rather small. Protecting against theft really only helps reduce the cost of a single coverage and that is comprehensive. Comprehensive tends to be an affordable coverage for most drivers. Expect to see a little savings if you have comprehensive coverage and an anti theft system.
  • Advanced Quote Discount: This discount has always seemed a little odd to me. Most insurance carriers offer an advanced quote discount. That is right, a discount for getting your quote in advance. It is often applied if you get a quote and wait 8 or more days to actually switch over. I would think it would be in the insurance carrier’s best interest to offer a discount for switching immediately, but they want to reward the responsible driver. The driver who thinks ahead and does not wait until the last minute to make car insurance decisions.
  • Loyalty Discount: Stay with your insurance carrier for an extended period of time and receive a discount for it. This discount often starts coming into play two years after starting your policy and can increase over time. Potential higher discounts after five and ten years depending on your insurance carrier.
  • New Car Discount: A new car discount can be nice, but it can be slightly annoying too. Some carriers offer a new car discount to vehicles five years old and newer. Sometimes the discount increases based on the newness. Meaning a brand new car could get a better discount than one two years old. The potential to total out a new car is less because the value is higher. So you would have to be in a severe accident in order to see a total loss. Plus, new cars usually have the best safety features. The annoying part comes in when your vehicle ages and the new car discount is removed. Nobody ever thinks they should pay more for an insuring an older vehicle. It is just one of those quirky car insurance discounts which can be hard to understand. Keep in mind older vehicles cost the same to repair only costs the insurance company less if it is a total loss.
  • Military Discount: Active military, reserves, and veterans can all potentially get a discount on car insurance depending on the insurance carrier. Most people know USAA as the best place for military families to get insurance. It is possible to get better rates and possibly service with other carriers based on your specific circumstances. It never hurts to ask if a discount is available.
  • Teacher Discount: MEEMIC, Michigan Educational Employees Mutual Insurance is an exclusive insurance carrier for teachers. It is going to be hard for a teacher to find cheaper car insurance coverage, but not necessarily impossible. Keep your options open, but definitely check with the carrier who specializes in your expertise.
  • Traffic School Discount: Some insurance carriers offer a discount for defensive driving classes. If you have taken such a course, then definitely mention it to your insurance agent.
  • Education Level Discount: Have you completed a college degree or even taken a few courses here an there? You could get a discount for it. Insurance carriers are allowed to discount rates based on education. Apparently some insurance carriers have found less claims are filed based on your level of education. I did not say it was fair, I’m just telling you how it currently stands.
  • Income Level Discount: Another controversial discount is rating drivers based on their income. Some carriers reward higher income families with lower rates because they feel a claim is less likely to be filed. Some insurance carriers believe more damage is handled without filing an insurance claim based on past research.

Hidden Car Insurance Discounts

Not all discounts are transparent. Some are maybe not discounts at all, but just different ways to save. Go beyond your insurance carriers list of discounts to truly find cheap car insurance.

Prior Car Insurance:

  • Prior Limits of Liability: Did you know your prior limits of liability have a huge effect on the cost of car insurance when you go to switch insurance carriers? This is probably the most unknown factor in determining car insurance rates for drivers and nearly every insurance carrier does it. A prior limit of liability discount is a little hard to explain but bare with me because it is important in order to get cheap car insurance.

    Michigan’s minimum liability coverage is 20/40. Buy 20/40 limits and go to switch insurance carriers you will pay more than someone who has been carrying 100/300 limits of liability. Often each increase in liability is rewarded with cheaper rates. Common liability limits include 20/40, 50/100, 100/300, and 250/500. Other options are available, but you get the idea. Why do higher limits of liability get cheaper rates? I can only assume it is because it shows responsibility on the driver’s part. Michigan’s state minimum is really not enough coverage for most drivers. Insurance carriers want to sell 100/300 limits because it is the preferred coverage. To encourage those limits they offer a lower price to those people who have carried the coverage in the past.

  • Primary Health Insurance: Do you have health insurance through an employer? Will that health insurance policy cover you in an auto accident? If it does, you qualify for a lower car insurance rate in the state of Michigan verses a driver with state medical coverage or no medical coverage. It is called coordinated medical coverage because you have another policy in effect which will help cover medical expenses in an auto accident. All drivers on the car insurance policy need to have a primary health insurance policy in place in order to qualify for this discount. It is all or none for coordinated medical coverage.

Car Insurance Payment Discounts

Paying for your car insurance monthly through the mail is the worst way to make your payments. Insurance carriers offer incentives for some other forms of payments. Take a look at these other payment options to ensure you get cheap car insurance.

  • Paid In Full: What payment plan you select could make a difference in your overall insurance costs. Paid in full discounts are popular. Paid in full refers to paying for the entire term of your car insurance policy. A six month policy is the most common, but some go as long as a year.
  • Automatic Withdraw / EFT: Nearly all insurance carriers offer automatic withdraw. It is also referred to as EFT which is short for electronic funds transfer. Insurance carriers love their clients to be set up on EFT because it has been proven clients stay longer and consistently make their payments on time. Discounts are usually offered when you sign up for automatic withdraw and some make the discount even better than the paid in full discount. Check with your insurance agent to see what payment discounts are available.
  • Paperless Discount: Some insurance carriers try to promote being “green”. Going paperless usually means you will never get paperwork in the mail from the insurance carrier. All documentation will be sent to you via email. This discount is fairly small, but paperless can be more convenient. Combine convenience with savings and it becomes a pretty good deal.

More Car Insurance Rate Factors

To get really cheap car insurance you have to think about all aspects of insurance ratings. Some things are within your control while others are not. Know all the factors so you know what to expect.

  • What Kind of Vehicle You Insure: Some vehicles are inherently more expensive to insure. One good rule of thumb is the more expensive the vehicle the more it will cost to insure. Safety features also have a big impact on a vehicle’s rate. Sometimes smaller vehicles are at a greater risk of getting damaged therefore cost more than you might think. For instance, an Eco Chevy Cruise can get crunched easily by a deer. The Eco technology of the vehicle is expensive to repair. When compared to a pickup truck it is possible to payout more money for insuring the Chevy Cruise. It is just an example, comparison shopping is the best way to determine which vehicle will be cheaper.
  • What Coverage You Select: Coverage most definitely makes a big impact on the cost of car insurance. It is important to be smart about coverage. Keep what is important and drop the rest. It is best to speak with an insurance agent about what coverage is the best for you. Understand the coverage you choose and make an educated guess on what future claims you might come across.
  • Your Age: We cannot control our age. We all have to live through the higher risk ages to get to the lower risk ages. Expect 16 to 25 to be more expensive than 26 to 50. 50 to 65 often get great rates. Then 66 and up start to see rates increasing as if they are a teenager again.
  • Where You Live: Do you live in the city of Detroit or Flint? Then you are probably paying a higher rate of insurance than someone living in the suburbs of Kalamazoo. Where you live does make a difference in your car insurance rate. More traffic often means more accidents. More crime means more car thefts and vandalisim. All of these things play a role in your insurance rates.

Shopping for Car Insurance

Now that you have done everything possible to become the best insurance client. It is time to start getting car insurance quotes. If you think you are paying too much for car insurance, the best way to find out is to start checking around. You might be surprised to see your rate is competitive. Or, you might be shocked by how much you have been over paying all this time. Rates are constantly changing with all insurance carriers. It does not hurt to check around every couple of years just to look into things. Also review your coverage with your insurance agent. Sometimes things change in your family composition or possibly discounts have been over looked. Talk to your licensed insurance agent to see what suggestions they might have to help get you the cheapest car insurance possible. Image: posterize / FreeDigitalPhotos.net

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