Just about any driver will agree that car insurance
can be costly. But that’s because the things that
insurance pays for, such as medical costs and car
repairs, cost more these days. While you can’t do
anything about that, you may be able to lower the cost
of your coverage.
Here Are Several Steps That May Help You
Reduce Your Premium:
1. When Purchasing a Car – You should think
about the cost of insurance before you purchase a
car. Ask your agent to give you a quote on the
cost of coverage because some models are much
less expensive to insure than others.
2. Shop Around – All insurance companies do not
charge the same amount. Call more than one
company or agent to compare prices and
3. Compare Collision Coverage Choices –
Collision coverage pays for repairs to your car if
you are in an accident. It is not required by law
and you can choose not to buy it if you own your
car. If your car is financed, the finance company
will probably require you to have collision
coverage. Remember, if you don’t have collision
coverage and you have an accident, you will have
to pay for repairs yourself.
The Insurance Counselor entitled, “The Three
Types of Collision Coverage,” explains the 3
kinds of collision insurance – limited, standard and
broad form. Limited is the least expensive and
gives the least coverage. Broad form is the most
expensive and gives you more coverage. Standard is in the middle. You may not want to buy the
most expensive kind of collision coverage.
4. Increase Your Deductible – A deductible on your
policy is the amount you agree to pay toward the
cost of repairs before the insurance company has
to pay anything. Several deductible options are
available for collision and comprehensive
coverage. The bigger your deductible, the more
you can save.
5. Don’t Duplicate – If you are hurt in a car
accident, the cost of your care may be covered by
both your auto insurance and your health
insurance. Car insurance companies offer a
discount if you “coordinate” your auto insurance
with private health/accident insurance. If you do,
your auto policy will pay only for costs that your
health policy does not cover. Ask your agent
about the discounts.
6. Ask your agent on group discounts. Many insurers offer lower rates to
employees or members of certain organizations.
Ask your agent if you could be eligible for these
7. Ask your agent about other possible discounts.
Many insurers offer discounts for safety devices or for having more than one type of policy with
the same company. Discounts are sometimes offered for such things as anti-theft devices, anti-lock brakes,air bags, seat belt usage and daytime running lights. You may also be eligible for a discount if you have two or more policies with the same insurance company. Ask your agent if any of these discounts are available from the insurance companies they represent.
8. Consider Dropping Some Coverages – Think
about dropping some kinds of coverage: collision
or comprehensive on an older car; uninsured
motorist; car rental; towing. Before you do this,
however, make sure you understand what it will
mean to be without the coverage in the event of an
ASK YOUR COMPANY OR AGENT about other
ways to reduce your premium. If you have further
questions, contact the Department of Insurance and
Financial Services (DIFS) at the address shown
below. DIFS is the state department that regulates
insurance in Michigan.
By Michigan Department of Financial and Insurance Regulation.