Tightwads Guide to Saving on Bloomfield Hills Car Insurance

Nobody I know likes having to buy car insurance, particularly when their premiums are through the roof. Because there are so many companies and agents to choose from, it can be challenging to find the cheapest provider.

It's important to get comparison quotes occasionally due to the fact that insurance rates are constantly changing. Just because you found the lowest rates a year ago you can probably find a better price now. So forget anything you know (or think you know) about car insurance because I'm going to teach you the tricks you need to know to save on car insurance.

Understand what determines the rate you pay

Consumers need to have an understanding of the factors that help determine the rates you pay for car insurance. When you know what positively or negatively impacts premium levels helps enable you to make changes that may reward you with much lower annual insurance costs.

The following are a few of the "ingredients" that factor into rates.

Where you live can impact rates - Living in small towns and rural areas can be a good thing when talking about car insurance. Urban drivers regularly have much more traffic and longer commute times. Less people living in that area means reduced accidents.
How many coverages with the same company - Many insurance companies will give a discount to insureds who buy several policies from them, otherwise known as a multi-policy discount. Even if you're getting this discount you still need to comparison shop to confirm you are receiving the best rates possible.
Women pay lower rates - Statistics show women tend to be less risk to insure than men. However, this does not mean men are WORSE drivers than women. Both sexes cause accidents in similar percentages, but the males have costlier accidents. They also get more serious tickets like DUI and reckless driving. Youthful male drivers are most likely to cause an accident and are penalized with high car insurance rates.
Keep rates low by being claim-free - If you file claims often, you can look forward to either policy cancellation or increased premiums. Car insurance companies in Michigan generally give discounts to insureds who do not rely on their insurance for small claims. Your insurance policy is intended for larger claims.

More discounts equal less premium

The price of auto insurance can be rather high, but companies offer discounts that you may not know about. Certain discounts will be applied at the time you complete a quote, but lesser-known reductions have to be specifically requested prior to getting the savings. If you don't get every credit you qualify for, you are paying more than you should be.

Bundle and Save - If you insure your home and vehicles with the same insurance company you may earn at least 10% off all policies.
Theft Prevention Discount - Vehicles with anti-theft systems are stolen less frequently and will save you 10% or more.
Accident Forgiveness - Some insurance companies will forgive one accident before hitting you with a surcharge as long as you don't have any claims for a set time period.
Anti-lock Brakes - Vehicles equipped with ABS or steering control can reduce accidents and qualify for as much as a 10% discount.
Senior Citizens - If you're over the age of 55, you may be able to get a discount up to 10%.
Federal Employees - Employees or retirees of the government could cut as much as 10% off with select insurance companies.

A little note about advertised discounts, some credits don't apply to your bottom line cost. Most only reduce individual premiums such as collision or personal injury protection. So when the math indicates all the discounts add up to a free policy, you won't be that lucky. Any amount of discount will help reduce your premiums.

To choose companies who offer car insurance discounts in Michigan, click here.

Switch companies and save? Really?

Consumers in Michigan can't ignore all the ads for cheaper car insurance from companies such as GEICO, State Farm and Progressive. They all seem to have a common claim about savings after switching your policy.

But how can every company claim to save you money?

Insurance companies have a certain "appetite" for the right customer that makes them money. For example, a desirable insured might be between the ages of 30 and 50, owns a home, and has excellent credit. Any driver that hits that "sweet spot" will get the preferred rates and therefore will save a lot of money.

Potential customers who do not match this ideal profile will have to pay a more expensive rate and this can result in the customer not buying. The ads state "customers that switch" not "everyone that quotes" save that kind of money. That is how companies can truthfully make those claims.

Because of the profiling, you should get as many comparisons as possible. You cannot predict which company will have the lowest rates.

It's not one size fits all

When buying adequate coverage for your vehicles, there really is no perfect coverage plan. Coverage needs to be tailored to your specific needs and your policy should reflect that. Here are some questions about coverages that might point out if you might need an agent's assistance.

What is the difference between comprehensive and collision coverage?
Do I need special endorsements for business use of my vehicle?
Does my policy cover me when driving someone else's vehicle?
Do I need PIP (personal injury protection) coverage in Michigan?
Should I put collision coverage on all my vehicles?
Am I covered if I drive in a foreign country?
Can I rate high risk drivers on liability-only vehicles?

If you can't answer these questions but you know they apply to you then you might want to talk to a licensed agent. To find lower rates from a local agent, fill out this quick form or you can go here for a list of companies in your area. It is quick, free and can help protect your family.

For more Michigan car insurance information

Additional information can be found on the website for the Michigan Office of Financial and Insurance Regulation located here. Visitors are able to view agent and company licensing information, read consumer alerts, learn about insurance regulations, and download brochures.

Other informative sites include Wikipedia and this Bloomfield Hills agent directory.

In the end, you save

While you're price shopping online, do not buy poor coverage just to save money. In many instances, an insured cut uninsured motorist or liability limits only to regret they didn't purchase enough coverage. The ultimate goal is to get the best coverage possible at a price you can afford.

Cheaper car insurance can be sourced both online in addition to many Bloomfield Hills insurance agents, and you should compare price quotes from both to have the best rate selection. Some companies do not provide online price quotes and most of the time these regional insurance providers sell through independent agents.