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Michigan Tips for Saving on Car Insurance

The state of Michigan, as like most of the other states in the country, has made the maintenance of automobile insurance mandatory by state law. If a motorist wishes to own and operate a vehicle legally, he or she must keep proof of insurance accessible at all times. Proof of insurance is not limited to the insurance cards issued by vehicle insurance providers. It is any document that shows the motorist has met the requirements to assume financial responsibility in the event of an accident for which he or she may be deemed at fault. Michigan is a state that subscribes to a no fault system when it comes to dealing with automobile collisions. Under the guidelines of this system, there is no one particular party deemed at fault in the accident. Each motorist shares an equal amount of blame. Each motorist and the associated insurance company is responsible only for the medical expenses and repairs costs that he or she may incur in the accident. Even with the limitations of your financial responsibility, the associated costs can add up to a substantial amount. Therefore, car insurance is a mandatory necessity.

Each state sets it own minimums as to what kind of car insurance its motorists are required to maintain. One of the most common mistakes a motorist can make is to purchase more insurance than is necessary for their vehicles. The laws in Michigan require a motorist to maintain:

  • Bodily Injury Liability: $20,000/$40,000 Limit
  • Property Damage Liability: $10,000 Limit
  • Property Protection Insurance: $1,000,000
  • Personal Injury Protection: Medical
  • Personal Injury Protection: Work Loss

You will want to make certain that you purchase enough car insurance to meet Michigan's state requirements. Next, you will want to take careful stock of your assets to make sure that they are fully protected in the event of an accident. However, you do not want to purchase unnecessary forms of coverage as they will only represent money that you could use elsewhere. For example, personal injury protection insurance assists you and your passengers in paying for medical bills that result from treatment you received due to injuries sustained in the collision. However, most motorists in Michigan are already covered by comprehensive health insurance policies that would absorb most of the costs of treatment anyways. Therefore, it may a financially wise decision to decline purchasing more than the minimum amounts required for personal injury protection insurance.

Another example of ways you can save money when choosing car insurance would be collision insurance. Collision insurance will assist a motorist in paying for the repairs their car might sustain in a collision, minus their deductible. However, the monetary amount that an insurance policy will put towards repairs will not exceed the maximum set forth on your policy limits or the current market value for the vehicle, whichever comes first. In addition, if the damage to a car exceeds 70% of its market value, the insurance company may elect to total the car anyways. Due to these factors and the fact that cars can depreciate greatly over time, it may not be the most financially feasible decision to retain collision insurance on older vehicles. However, if you own a car with an outstanding balance on it, you will be required by law to maintain collision insurance.

From another perspective, when you are selecting the sums of car insurance coverage you want to purchase, you want to ensure that the amounts will suffice to offer you adequate protection from any legal judgments that may be rendered against you in a court of law. The rules of a no fault system are designed to discourage motorists from seeking retribution in the court systems of the state. However, if the damages incurred are severe enough, an exception may be made.

When you are seeking to save money on your car insurance, like so many others, one of the best things you can do for yourself is to use price comparison techniques in order to shop around on car insurance rates. Obtaining a quote on you car insurance is great way to this. There are many websites on the Internet that offer this function to consumers, and the website that you choose to perform it from is entirely at your discretion. By answering several brief questions, you will be provided with a list of the rates that different competitors will offer you on the policy that you are interested. With so many options in front of you, the chances will greatly increase that you will be able to find an insurance company that offers your needed coverage at an affordable rate.

You should mind your driving habits. It may behoove you to take a driver's educational course or a defensive driving course, even if you have been driving for a number of years. By brushing up on your knowledge, you may able to identify risky driving behaviors that you were not aware that you engaged in. This will decrease your chances of being involved in a collision. Most insurance companies will offer a discount to a motorist who has taken such a course or who has maintained a clean driving record for an extended period of time. These discounts can often be as high as 20% off of your rates. In addition, the state of Michigan will allow you to deduct one point from your driver's license record every twelve months that you take a defensive driving course. This can be instrumental on saving money on your premiums over the years.

Your location is going to play a role in the rates that you are charged for car insurance. The crime statistics for your neighborhood allow an insurance company to determine how likely you are to be the victim of a crime. One's location is a factor in car insurance rates that cannot always be easily changed. However, the installation of an anti theft device or a tracking system for your vehicle can provide you with discounts on your insurance premiums.

The type of vehicle that you drive is going also to be highly influential in factoring your premiums. A higher-end luxury car is going to be more expensive to insure than a mid-range sedan simply because of the higher cost of expense that would be involved in fixing the car if it were involved in an accident.

Your car's visibility factor is going to affect how likely it is to be stolen. Twenty four inch rims or an outstanding stereo system might seem edgy and cool, but an insurance company is going to view such additions as increases to the likelihood that your car will be burglarized and will charge you accordingly. Along similar lines, a car that possesses multiple safety features will be much less expensive to insure. Anti-lock brakes and airbags are two common examples of safety features.

You should educate yourself about the ways that you can save money on your car insurance. Do your research online. Obtain rate quotes from different providers. Talk to an insurance agent. The tools for you to use are available for you to take advantage of.


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