It’s no secret, car insurance in Michigan is very expensive.
For the fifth year in a row, Michigan has ranked as the most expensive state for Car Insurance.
In 2018, The average car insurance premium for Michigan residents is 64% higher than the national average premium. So far for 2019, our own research has shown that currently Michigan drivers are paying on average $1,300 for a one full coverage vehicle. This is $346 higher than the national average. The national average currently stands at $954 per year.
With premiums so high, knowing all the discounts and ways to save on your insurance is very important in Michigan.
Top 3 Ways to Save on Car Insurance in Michigan
- Improve Your Credit
People, usually, only think about their driving record because the policy covers their car. However, you must keep in mind, the insurance companies are a business. Your credit is a big factor when car insurance companies calculate your premium. Statistics show that customers in Michigan with a lower credit score are more likely to file more claims, file inflated claims, and even commit insurance fraud.
At the end of the day, the insurance companies are a business. The “service” they provide is the coverage on your car insurance. They want to know that you are a reliable person that will pay on time and will not resort to inflated claims or fraud. In fact, some companies will use your credit history to determine how you will pay for your insurance. Certain companies have been known to charge individuals with a lower credit score a higher up front premium.
Some basic tips for improving your credit score:
– Open new credit cards and credit accounts only when necessary. Applying for too many (especially in a short time span) can hurt your score.
- Keep your credit card balances well below your credit limits.
- Make all of your credit card, and loan, payments on time.
- Have a car that is cheap to insure
Certain car models are cheaper to ensure than others. This usually has to do with the car’s safety rating, anti-theft systems, repair costs, and accident statistics. Safe and moderately priced automobiles such as minivans and small SUVs tend to be cheaper than something flashy like a Ferrari.
A good tip for finding a car that is cheap to insure in Michigan is to check car insurance rates with a local independent Michigan auto insurance agency before making a purchase. Local agencies have the best pulse on what car will be the cheapest to ensure, and may even give you a list of models and the prices for those models across all insurance providers.
- Shop Around
This may seem like an obvious statement, but you would be surprised and how often people forget to shop around when it comes to car insurance. Sometimes its because they have been loyal to a certain agent and company for a long time, and other times they do not want to deal with the hassle of shopping around.
If you find yourself in one of these two categories remember – car insurance rates can vary by hundreds of dollars a year among insurers for the same level of coverage. You are missing out on some major cash by not shopping around.
If you find yourself particularly in the second category and do not want to deal with the hassle of filling out form after form online and speaking to multiple insurance agents, you can also go the independent agency route.
Independent agencies are there to make your life easier. For example: Compass Insurance Agency is an independent agency that can compare rates on your auto insurance from 17 insurance providers in Michigan all at once.
With an independent agency you can also get quotes once a year to ensure that you are always getting the lowest rates, without having to repeat the process over every year.