Benjamin Franklin said there are only two certainties in life, death and taxes. Having to pay for car insurance can arguably be added to that list. In many states, like Michigan, you can't even register a vehicle without first providing proof of insurance. Unfortunately for Michigan residents, a recent study ranked their state as the most expensive in the nation by far when it comes to auto insurance, a whopping 136% higher than the national average. Michigan is a no-fault state, which means regardless of who is at fault, insurance companies must pay out when there is an accident. In fact, all states on the top ten most expensive premiums list are no-fault states. Michigan law also requires unlimited lifetime benefits for catastrophic injuries, the only state that mandates this requirement. While this is an impressive benefit, it doesn't come cheap. Here are three ways you can reduce the cost of your car insurance, whether you live in Michigan or Maine, the state with the lowest rates in the union.
Choose A Vehicle With A Lower Insurance Rate
Not all vehicles are created equally when it comes to the cost to insure them. High-end sport vehicles and luxury cars typically cost more because their replacement cost is higher. They also tend to be vehicles that car thieves target. A mini-van on the other hand isn't likely to become a car theft statistic. Vehicle size, such as large SUVs and trucks, can potentially cause more damage, therefore they are also usually costly to insure. Low profile vehicles with good safety features are usually the cheapest to insure.
Consider Dropping Collision Insurance
If you have a new vehicle that is financed by the bank, this won't be an option for you. However, if you have an older vehicle that is bought and paid for, you may not need a comprehensive policy. Be certain you can afford to replace the vehicle or pay for repairs should it be destroyed or damaged in an accident. You'll want to discuss this with your car insurance agent first to ensure this is a wise decision first.
Check With Your Insurance Agent About Discounts
Some insurance companies offer reduced rates for certain professions, such as teachers, or to members of specific organizations. Additional discounts may be given in some areas for after-market upgrades like anti-theft devices. Ask your car insurance agent if you might qualify for any of these special reduced rates.
Contact an insurance company like Kesner Insurance Agency Inc for more information.
After I moved out of my parent's home, I started learning more and more about insurance policies. I was involved in a bad car accident, and I ended up working with my car insurance company as well as my medical and dental insurance companies. I paid my premiums and enjoyed coverage, but I didn't really understand how the entire insurance claim process worked. I wanted to make this blog to help other people like me to learn more about insurance coverage. Check out this blog for more details on insurance coverage, how to file a claim, and what you should expect throughout the shopping process.