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7 effective ways to reduce your Michigan car insurance policy

By Edited Jan 1, 2014 0 0

Multiple Car

One of the biggest discounts that most Michigan carriers offers is Multiple Car Discount- If you are living with a relative and both insure with the same company you should be able to qualify for this discount.

Multiple Line

Another great discount that is offer is multiple line discounts- If you carry the multiple policies with the same carrier you will be eligible for this discount.

Examining your coverage's is a great way to save on your car insurance. The three main areas that you can change that will affect your premium are bodily injury limits, personal injury protection and physical damage.

Bodily Injury Limits (BI)

The state requires you to carry these minimum limits:

• $20,000 per person who is hurt or killed in an accident

• $40,000 for each accident if several people are hurt or killed

• $10,000 for property damage in another state

These limits are usually shown as 20/40/10 but can go as high as 1 million/1million/1 million. Choosing the state minimums will make your premium lower than if you choosing higher limits. The trade-off is that if you are sued from an accident that you are at fault you will have to pay more money out of pocket to cover the lawsuit. So if you have a lot of assets to protect you should stay with the higher limits.

Personal Injury Protection (PIP)

In Michigan PIP comes in 5 choices:

  • Full PIP- The most expensive choice the insurance company will pay all of your medical expenses as a result of an auto accident.
  • Full PIP with deductible -2nd most expensive choice insurance company will pay all of your medical expenses as a result of an accident after your deductible.
  • 3 Coordinated PIP choices:

Coordinated Medical with Full Wage loss- if your primary health care allows you to coordinate this will save you money over Full PIP. (You can't coordinate if you have a government plan such as: Medicare or Medicaid.)

Coordinated Wage Loss with Full Medical- If you have a good disability plan at work that will compensate you for your wage loss, but your health will not coordinate. This choice will also save you money over Full PIP.

Coordinated Medical and Coordinated Wage Loss- The biggest savings from (PIP) comes with this choice because the insurance company will be secondary for medical bills and wage loss.

Physical Damage Coverage's:

Collision and Comprehensive coverage- The higher the deductible that you select the lower your insurance will be, but the trade-off is that you will be paying more to repair your car. For example if you have a $1000 deductible, anything under that deductible will be your responsibility to fix.

Young Driver Programs

Most Carriers offer some form of young drivers, driver education or good student programs that will help if you have a young adult driver in your household.

Misc. Discounts

Carriers offer a variety of lesser discounts that can also provide savings such as: anti-theft discount, low income, low driving mileage, senior discounts, low income, single drivers and good driving record.

Bonus

Although this is not a discount most carriers in Michigan use some form of credit scoring so you should also be aware of your credit and how it could impact your insurance rate.

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