How to Know You're Spending Too Much for Car Insurance in Alpena

Expensive car insurance can overdraw your checking account and put a big crunch on your finances. Shopping your coverage around is free, only takes a few minutes, and is a good way to help make ends meet. Insurance companies such as GEICO and Progressive continually bombard you with ad campaigns and it is challenging if not impossible to sift through the bull and find the best price available.

It's important to do rate comparisons yearly due to the fact that insurance rates are constantly changing. Despite the fact that you may have had the best price six months ago a different company probably has better rates today. Block out anything you think you know about car insurance because you're about to find out one of the best ways to get good coverage at a lower rate.

Don't pay full price with these discounts

Companies offering auto insurance do not advertise all their discounts in a way that's easy to find, so we took the time to find both the well known as well as the least known savings tricks you should be using. If you aren't receiving every discount you deserve, you are throwing money away.

College Student - Kids in college who attend school more than 100 miles from home and do not have access to a covered vehicle may be able to be covered for less.
Life Insurance - Some companies give better rates if you take out life insurance from them.
Senior Citizens - If you qualify as a senior citizen, you may be able to get reduced rates.
Government Employees - Active or retired federal employment can earn a discount up to 10% with select insurance companies.
Anti-lock Brake System - Cars that have steering control and anti-lock brakes can reduce accidents and qualify for as much as a 10% discount.

It's important to note that most discount credits are not given to your bottom line cost. Most only apply to individual premiums such as liability, collision or medical payments. So when the math indicates you could get a free car insurance policy, you're out of luck.

Why some people pay less for insurance in Alpena

Smart consumers have a good feel for the different types of things that help determine the rates you pay for car insurance. Having a good understanding of what influences your rates allows you to make educated decisions that may reward you with better car insurance rates.

The following are a few of the "ingredients" companies use to determine rates.

Older drivers pay less - More mature drivers are viewed as being more responsible, tend to cause fewer accidents and tend to be better behind the wheel. Youthful drivers are known to be less responsible when driving and because of this, their car insurance rates are much higher.
Rural vs Urban Areas - Residing in a small town can be a good thing when talking about car insurance. Less people living in that area means fewer accidents. City drivers have much more traffic to deal with and longer commutes to work. More time commuting translates into higher accident risk.
Men pay higher rates - Statistics have proven women are more cautious behind the wheel. However, this does not mean women are better drivers. Men and women cause accidents in similar percentages, but the males have costlier accidents. They also receive more costly citations like DUI and reckless driving. Young males are most likely to cause an accident and therefore are the most expensive to insure.
Your car insurance rates can be influenced by your job - Did you know your occupation can influence how much you pay for car insurance? Jobs such as lawyers, business owners and dentists tend to pay the highest average rates because of high stress and long work hours. Other jobs such as pilots, historians and performers have the lowest average rates.
Do you qualify for a multi-policy discount? - Many insurers will give a discount to insureds who buy several policies from them such as combining an auto and homeowners policy. This can amount to five, ten or even twenty percent. Even with this discount, you still need to compare other company rates to make sure you are getting the best deal.

Your personal situation dictates your coverage

When it comes to buying the right insurance coverage for your personal vehicles, there really is not a perfect coverage plan. Everyone's needs are different so your insurance should reflect that Here are some questions about coverages that can help discover whether or not you might need an agent's assistance.

Do I pay less if my vehicle is kept in my garage?
When does my teenage driver need to be added to my policy?
Should I put collision coverage on all my vehicles?
Why am I required to get a high-risk car insurance policy?
What are Michigan no-fault laws?
Do I need PIP (personal injury protection) coverage in Michigan?
Should I buy additional glass protection?

If you're not sure about those questions but you know they apply to you, then you may want to think about talking to an agent. To find an agent in your area, complete this form or you can go here for a list of companies in your area. It's fast, doesn't cost anything and can help protect your family.

The car insurance bait and switch

Consumers in Michigan get pounded daily by advertisements for car insurance savings by companies like Progressive, GEICO, Allstate and State Farm. They all seem to make an identical promise that you can save after switching to them.

How can each company claim to save you money?

Different companies have a preferred profile for the type of driver that earns them a profit. For example, a desirable insured might be between the ages of 30 and 50, has no prior claims, and has a high credit rating. Any driver who meets those qualifications is entitled to the best price and therefore will save when they switch companies.

Drivers who don't measure up to the requirements will have to pay higher premiums and ends up with the customer not buying. Company advertisements say "customers that switch" not "everyone that quotes" save money. This is how insurance companies can state the savings. Because of the profiling, drivers should get as many quotes as possible. You cannot predict which insurance companies will have the lowest rates.

Additional detailed information can be found at the Michigan Office of Financial and Insurance Regulation website. Visitors are able to read enforcement actions against agents and companies, view agent and company licensing information, learn about insurance regulations, and read industry bulletins.

A tidy conclusion

As you restructure your insurance plan, it's a bad idea to skimp on coverage in order to save money. There are many occasions where consumers will sacrifice physical damage coverage only to regret at claim time that they should have had better coverage. Your aim should be to buy enough coverage at a price you can afford.

Lower-priced car insurance can be bought both online and with local Alpena insurance agents, and you should compare price quotes from both to have the best chance of lowering rates. Some insurance companies do not offer you the ability to get quotes online and most of the time these regional insurance providers sell through independent agents.