Tightwads Tips for Saving on Coldwater Auto Insurance

Have you had enough of trying to scrape together enough money each month for car insurance? Your situation is no different than the majority of other car owners in Michigan.

There is such a variety of to buy insurance from, and although it's a good thing to be able to choose, so many choices can make it hard to compare rates.

Understand what determines the rate you pay

Consumers need to have an understanding of some of the elements that go into determining the price you pay for auto insurance. Knowing what influences your rates helps enable you to make changes that could result in lower auto insurance prices.

Listed below are a partial list of the pieces that factor into premiums.

Safer cars cost less to insure - Cars with high safety ratings are cheaper to insure. Safe vehicles have better occupant injury protection and lower injury rates translates into fewer and smaller insurance claims and thus lower rates.
Careful drivers pay lower rates - Whether or not you get tickets has a lot to do with how much you pay for insurance. Only having one citation may increase your cost by as much as thirty percent. Drivers with clean records receive lower rates than bad drivers. Drivers with serious tickets like hit and run, DWI or reckless driving convictions are required to submit a SR-22 form with their state DMV in order to continue driving.
Do you have enough liability coverage? - Liability insurance will protect you if a court rules you are at fault for damages caused by your negligence. Liability provides legal defense starting from day one. Carrying liability coverage is mandatory and cheap compared to physical damage coverage, so buy as much as you can afford.
Your occupation can affect rates - Did you know that where you work can have an impact on rates? Occupations such as judges, architects and financial analysts are shown to have higher average rates attributed to high stress and lengthy work days. Conversely, occupations such as farmers, engineers and homemakers pay the least.
Low deductibles can be expensive - Your deductibles represent how much money you are willing to pay if you file a covered claim. Physical damage insurance, termed comprehensive and collision coverage on your policy, protects your car from damage. Some examples of claims that would be covered could be colliding with a building, collision with an animal, and burglary. The more the insured has to pay upfront, the less your company will charge you for insurance.
The more you drive the more you pay - The more miles you rack up on your car every year the more you'll pay to insure your vehicle. The majority of insurers apply a rate based on their usage. Vehicles left parked in the garage receive lower rates than vehicles that are driven to work every day. Make sure your auto insurance policy shows how each vehicle is driven, because improper ratings can cost you money.
Marriage pays dividends - Having a wife or husband can actually save you money when buying auto insurance. Having a spouse usually means you are more mature and it's statistically proven that drivers who are married are more cautious.

These discounts can lower your rates

Car insurance companies don't always list all available discounts very clearly, so we researched both well-publicized and the more hidden auto insurance savings.

Fewer Miles Equal More Savings - Driving fewer miles could be rewarded with lower rates on the low mileage vehicles.
Military Discounts - Having a deployed family member could mean lower rates.
Good Students Pay Less - This discount can get you a discount of up to 25%. Earning this discount can benefit you until age 25.
Save over 55 - If you're over the age of 55, you may qualify for a discount up to 10%.
Organization Discounts - Participating in a qualifying organization could qualify you for a break when buying auto insurance.

Keep in mind that most of the big mark downs will not be given to the entire cost. Most only apply to the cost of specific coverages such as liability and collision coverage. So even though they make it sound like all the discounts add up to a free policy, it just doesn't work that way.

To choose insurers offering auto insurance discounts in Michigan, follow this link.

Are you falling for claims of savings?

21st Century, Allstate and State Farm constantly bombard you with ads on television and other media. All the companies say the same thing that you can save if you switch your policy. How does each company make almost identical claims?

All companies can use profiling for the right customer that makes them money. For instance, a profitable customer could possibly be between the ages of 30 and 50, has no tickets, and has a high credit rating. A customer getting a price quote who fits that profile is entitled to the best price and as a result will probably save when switching.

Potential customers who are not a match for these standards must pay a higher premium which usually ends up with the driver buying from a lower-cost company. Company advertisements say "people who switch" not "everybody who quotes" save that kind of money. That's why insurance companies can state the savings. This illustrates why you should compare as many rates as you can. It's impossible to know the company that will have the lowest rates.

More Michigan auto insurance information

Additional detailed information is located at the Michigan Office of Financial and Insurance Regulation website. Michigan consumers can find disaster information, file complaints about a company, find out which companies have the most complaints, and read industry bulletins.

The best insurance company isn't always the cheapest

Affordable auto insurance is available online in addition to many Coldwater insurance agents, and you should compare price quotes from both to have the best rate selection. Some insurance companies do not provide online price quotes and usually these small, regional companies provide coverage only through local independent agents.

You just read many ways to save on auto insurance. The key thing to remember is the more companies you get rates for, the better chance you'll have of finding lower rates. Drivers may discover the lowest rates come from an unexpected company. Some small companies can often insure niche markets at a lower cost than the large multi-state companies such as .