How to Know You're Wasting Money for Car Insurance in Cedar

Did you fall for a flashy sales pitch and buy an underperforming, overpriced car insurance policy? Believe me, many Cedar consumers feel financially strained by their car insurance policy. Companies like GEICO and Progressive constantly bombard you with TV and radio ads and it can be hard to sift through the bull and effectively compare rates to find the best deal.

What determines how much you pay?

Consumers need to have an understanding of the rating factors that go into determining your car insurance rates. Having a good understanding of what influences your rates allows you to make educated decisions that could result in lower car insurance prices.

  • Safer cars are cheaper to insure - Cars with high safety ratings tend to have better insurance rates. Safe vehicles result in less severe injuries and fewer injuries means lower claim amounts and more competitive rates for policyholders.
  • Do you know your deductibles? - Physical damage deductibles represent how much money you are willing to pay before your car insurance pays a claim. Coverage for physical damage, otherwise known as comp (or other than collision) and collision, protects your car from damage. Examples of covered claims are colliding with a building, collision with an animal, and windstorm damage. The higher the amount you're willing to pay, the less your car insurance will be.
  • Better credit means lower rates - A driver's credit score is a huge factor in calculating your car insurance rates. Therefore, if your credit rating is lower than you'd like, you could save money insuring your by improving your credit score. Drivers with high credit ratings tend to file fewer claims and have better driving records than those with poor credit.
  • Frequent car insurance claims increase rates - If you tend to file frequent claims, you can pretty much guarantee either a policy non-renewal or much higher rates. Auto insurance companies in Michigan give cheaper rates to drivers who file claims infrequently. Auto insurance is meant to be used in the event of the large, substantial claims.
  • Performance level impacts rates - The performance level of the car you are insuring makes a big difference in your rates. Low performance passenger models generally have the cheapest insurance rates, but the final cost of insurance is determined by many other factors.
  • How's your driving record? - Whether or not you get tickets has a huge affect on how much you pay. Good drivers tend to pay less for car insurance than bad drivers. Only having one speeding ticket can increase rates forty percent or more. Drivers with serious tickets like DWI, reckless driving or hit and run convictions are required to file a proof of financial responsibility form (SR-22) with their state motor vehicle department in order to continue driving.

car insurance in Cedar

More discounts equal less premium

Car insurance companies do not advertise all available discounts in a way that's easy to find, so we took the time to find some of the more common and the harder-to-find ways to save on car insurance. If you aren't receiving every discount possible, you are paying more than you should be.

  • Fewer Miles Equal More Savings - Driving fewer miles can earn better rates on cars that stay parked.
  • Homeowners Discount - Owning a home in Cedar may earn you a small savings because owning a home is proof that your finances are in order.
  • Passive Restraints and Air Bags - Vehicles equipped with air bags and/or automatic seat belt systems can qualify for discounts up to 30%.
  • Federal Government Employee - Employees or retirees of the government can save as much as 8% depending on your company.
  • Early Signing - Select companies give a discount for switching to them prior to your current policy expiration. This can save 10% or more.

Keep in mind that most discount credits are not given to all coverage premiums. Some only reduce the price of certain insurance coverages like liability and collision coverage. Just because you may think all the discounts add up to a free policy, it just doesn't work that way.

To choose insurers offering car insurance discounts in Cedar, click this link.

Switch companies and save? Really?

Consumers can't ignore all the ads that promise big savings by companies like 21st Century, Allstate and State Farm. All the companies make the same claim that you can save if you switch to them.

How can each company make the same claim? This is how they do it.

All companies are able to cherry pick for the type of driver that makes them money. For example, a profitable customer could be over the age of 50, has no driving citations, and drives less than 7,500 miles a year. A customer who matches those parameters will get very good rates and therefore will save when they switch companies.

Consumers who do not match the requirements must pay higher rates which leads to business going elsewhere. The ads say "drivers who switch" not "everyone that quotes" save money. That's the way insurance companies can advertise the way they do. This illustrates why you should get as many comparisons as possible. Because you never know which car insurance company will provide you with the cheapest rates.

Learn more about Michigan car insurance

Additional detailed information can be found at the Michigan Office of Financial and Insurance Regulation website. Consumers can find disaster information, report car insurance fraud, find out industry alerts, and download brochures.

Best coverage at the best price

Affordable car insurance is available from both online companies and with local Cedar insurance agents, and you should be comparing both to get a complete price analysis. Some car insurance companies do not offer online price quotes and usually these regional insurance providers provide coverage only through local independent agents.

We just showed you some good ideas how to save on car insurance. The key thing to remember is the more companies you get rates for, the higher the chance of saving money. You may even find the biggest savings come from a smaller regional carrier. Some small companies can often insure niche markets at a lower cost as compared to the big name companies such as .

When shopping online for car insurance, it's a bad idea to buy poor coverage just to save money. There are a lot of situations where someone sacrificed physical damage coverage only to discover later that a couple dollars of savings turned into a financial nightmare. The proper strategy is to find the BEST coverage for the lowest price while not skimping on critical coverages.