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

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”.

May 14

Is Michigan’s State Minimum Coverage Right for Me?

Selecting the right car insurance coverage is important. Using Michigan’s state minimum coverage as the base of your car insurance policy is not the best idea. Michigan’s minimum required coverage is 20,000 bodily injury coverage per person, 40,000 per accident, and 10,000 property damage. If the state says this is all you need to drive legally, why should you purchase higher limits of coverage?

#1 Reason for Selecting Higher Limits of Liability

Not all states have the same car insurance laws as Michigan, actually none of them do. Most people in other states have never heard of standard collision or broad collision. In most states, property damage coverage pays for damages to other people’s vehicles when you are the at-fault driver. When you are in an accident outside of the state of Michigan, that states insurance laws apply.

So imagine you get distracted and cause a serious accident while driving on a long trip outside the state of Michigan. Say you total out a new Ford Focus. Now your car insurance policy is responsible for paying for the total loss of the Ford Focus. Do you think $10,000 will be enough to cover the damages? Probably not. You could be held personally responsible for damages above your listed limits.

#2 Reason for Selecting Higher Limits of Liability

Insurance carriers reward Michigan drivers for carrying higher limits of liability. The most savings is offered to those individuals carrying 100,000/300,000/100,000. What exactly does this mean and why would you be rewarded for carrying higher limits?

$100,000 bodily injury liability coverage per person, $300,000 bodily injury liability coverage per accident, and $100,000 property damage all of which covers the other people in an accident in which you were at-fault. Selecting higher limits of coverage shows you are making a responsible choice in your own protection. 100/300/100 are preferred limits. By carrying the preferred limits, you are a better risk for insurance carriers because you have begun by taking responsibility. In return for making responsible choices, you are rewarded with a discount when you have prior limits of 100/300/100. The discount is offered by most carriers and can be a hefty savings.

#3 Reason for Selecting Higher Limits of Liability

For the liability of course. This is number three because hopefully you will not need to use liability coverage in the state of Michigan. Liability is only paid out for pain and suffering usually caused by complete negligence. With Michigan’s unlimited medical coverage, liability payouts are greatly reduced when compared to other states. Often drinking and driving or falling asleep at the wheel are cause for liability payout. It is comes into play more frequently outside the state boundaries of Michigan.

Higher limits give you a much better chance of having enough coverage to cover the loss of an accident. Heaven forbid you need to use your liability coverage, but if you did, it would be wise to carry 100/300/100 to ensure you have limits high enough to cover the loss. Any loss over your limits could be held against you personally.

The bottom line is that the minimum coverage really is not enough coverage. Even the insurance carriers want to promote higher limits of liability. Select 100/300/100 in order to save money and fully protect yourself.

Suggested Reading

Jul 13

Do I Need Comprehensive Coverage in MI?

A lot can happen to your car in the state of Michigan. Comprehensive coverage can really come in handy on almost any vehicle. Most operating autos are at least worth a windshield replacement and replacing a windshield can get expensive. Comprehensive coverage is a great coverage to have because it covers so many different causes of physical damage. Here are some things to consider if you are trying to determine if you need comprehensive coverage in Michigan.

1. Comprehensive coverage is not a state requirement. You only need comprehensive if it is required by your lender. Tip: Most all lenders require comprehensive and collision coverage at all times.

2. Comprehensive is a required coverage if you want collision coverage.

3. Comprehensive covers anything other than a collision and that is a lot!

4. What is your likelihood of damage? Do you seem to hit a deer every year? Are you constantly getting chips in your windshield from driving on the highway daily? Do you park outside where your car is susceptible to storm damage? All of these things put you at a higher risk of needing comprehensive coverage.

5. What is the cost of comprehensive coverage? Comprehensive tends to be a relatively inexpensive expense on your car insurance policy. Of course, it does vary depending on your driving risk. Get a quote on the cost of comprehensive from your insurance agent.

6. What is the value of your vehicle? One of the perks of driving an old beater car is you get to drop your car insurance down to minimum coverage. Consider keeping comprehensive coverage on your vehicle if paying the low monthly rate is easier for you than coming up with the cash to replace the windshield on your own. Keep in mind though comprehensive usually comes with a deductible. You do not want to have a $500 deductible on a vehicle which is only worth $500.

7. Insurance carriers typically require photos of the vehicle if it is over 20 years old and you want comprehensive coverage. Insurance carriers do this to protect themselves against insuring a vehicle with prior damage. Any damage sustained to the vehicle before the coverage is purchased is not covered.

I would encourage most Michigan residents to keep comprehensive coverage on their vehicles especially in the fall months. Deer are plentiful and can cause a lot of damage. A good threshold to keep in mind is if your vehicle is valued over $3000 it is probably worth keeping comprehensive coverage on, especially if you are a good driver. Young drivers and drivers with bad driving records would benefit more to go without comprehensive coverage.

More Michigan Car Insurance Coverage

Help Shopping for Car Insurance

Jun 13

5 Reasons to Get a Car Insurance Quote

  1. Sick of Not Getting Calls Back From Your Agent: You deserve better! It is easy to find agents who are never at the office or do not return your phone calls. If your agent never seems to be available, do something about it. Start getting car insurance quotes from other agents who actually want your business.
  2. Price Goes Up Every Six Months: Tired of seeing your car insurance bill go up every six months without any changes to your driving record? It might be time to start shopping. Car insurance rates are always changing. They may be changing with other insurance carriers too. It never hurts to get car insurance quotes to make sure you are getting the best rate available to you.
  3. Improved Driving Record: You have put in the dedication of keeping your driving record clean for the last three years. Your last ticket has finally fallen off your record and your insurance carrier rewards you with a five dollar decrease in rates. Once again, it is time to get a car insurance quote or two. Maybe you were with a high risk insurance carrier and now you are eligible for a preferred carrier. Check it out, you might be surprised how much you are able to save.
  4. Horrible Claims Service: So you filed your first car insurance claim and were shocked at the unorganized mess your claim turned into. The handling of claims is the heart of every insurance carrier. Unfortunately it is difficult to know how your insurance carrier will perform in your time of need. If you are not satisfied with their work, start getting some insurance quotes from other carriers.
  5. You are Moving: It is not required to switch insurance carriers as long as you are staying in the same state. It may be more convenient though. It can be nice to actually go into your insurance agency from time to time. There is something to be said for personal interaction with your insurance agent. Consider switching to a local agent if you are moving to a new city.

Further Reading