A Guide to Purchasing Cheap Car Insurance in Michigan
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Average Car Insurance Annual Premiums
The national average cost for car insurance is just over $907 based on a 2014 study by Quadrant Information Services, the latest information that is available. In Michigan, the premiums were considerably above the average for the nation at $2551 which works out to about $213 per month.
Keep in mind that your car insurance premiums in Michigan vary considerably as there are several factors which can add or subtract to what you pay. This means that just because Michigan has on average higher insurance premiums compared to national rates, you may wind up paying a different amount based on the type of policy, age, gender, mileage and driving record.
Types of Policies
Because car insurance is sold across state lines, Michigan features the same types of auto insurance policies as all other states.
- Underinsured & Uninsured Motorist
As with most other states, Michigan has a minimum requirement for auto insurance which is the liability and uninsured motorist. Comprehensive auto insurance means that the damage will be addressed whether you were the cause of the accident or not.
Other, smaller forms of auto insurance include theft, fire, and vandalism which provides compensation if your vehicle is stolen or damaged.
How to Find Affordable Rates & Discounts?
To get a cheap PLPD auto insurance in Michigan, the first step is to find out the basic rates that you will pay. Keep in mind that your rates may be above or below the average in Michigan, but all those who are insured can take advantage of discounts.
Raise Deductible: Arguably the most common method of lowering the rates you pay is by increasing the deductible on your insurance. This means that you will have to pay more out of pocket, but it can be worth it thanks to the savings that you will enjoy.
Take an Approved Driver Safety Course: Most insurance companies have recognized driver safety courses which can shave 5% to 10% off the rates you pay upon completion of the program. Be sure that you take a driver safety course that the insurance company recognizes so you can get the benefit.
State Minimum Auto Insurance: If your vehicle does not have any liens against it from lenders, then you can choose to purchase Michigan’s minimum requirement for auto insurance.
You can save 20% or more compared to comprehensive insurance, but you will have to pay for any damage to your vehicle if you caused the accident to occur.
Of course, you can also bundle your auto insurance with home insurance from the same company and enjoy a discount that may range from 10% up to 25% or more. By taking advantage of all the discounts available, you can find the right cheap auto insurance for your needs.