Easy Methods to Cut Costs on Grand Rapids Auto Insurance

Comparison shopping for Grand Rapids auto insurance is nearly impossible for consumers new to shopping for insurance online. There are so many companies to choose from that it can be a challenge to find the best price in Grand Rapids.

If you are paying for car insurance now, you stand a good chance to be able to save some money using this information. The purpose of this post is to let you in on how car insurance quotes work and some money-saving tips. Nevertheless, Michigan drivers do need to know how companies sell online and take advantage of how the system works.

Policy discounts you shouldn't miss

Companies don't always advertise every discount in an easy-to-find place, so here is a list both well-publicized as well as the least known auto insurance savings.

Use Seat Belts - Using a seat belt and requiring all passengers to use their safety belts could cut 10% or more off your PIP or medical payments premium.
Claim Free - Claim-free drivers can earn big discounts when compared to drivers who are more careless.
Paperwork-free - A handful of insurance companies will discount your bill up to fifty bucks simply for signing on their website.
Low Mileage Discounts - Fewer annual miles can qualify you for lower rates on the low mileage vehicles.
Clubs and Organizations - Participating in certain professional organizations could qualify you for a break when shopping for auto insurance.
Passive Restraint Discount - Cars that have air bags can get savings of up to 25% or more.
Employee of Federal Government - Active or retired federal employment may qualify you for a discount with a few auto insurance companies.

It's important to understand that most credits do not apply to the entire cost. The majority will only reduce individual premiums such as comp or med pay. So despite the fact that it appears all those discounts means the company will pay you, it doesn't quite work that way.

How to Lower your Auto Insurance Rates

Smart consumers have a good feel for some of the elements that help determine the price you pay for auto insurance. Understanding what determines base rates empowers consumers to make smart changes that will entitle you to big savings.

The following are some of the factors used by your company to calculate prices.

Always keep insurance in force - Having an insurance coverage lapse will be a guaranteed way to bump up your auto insurance costs. Not only will rates go up, getting caught without coverage might get you a steep fine or even jail time.
Occupation reflects on rates - Did you know that where you work can have an impact on rates? Careers like doctors, architects and accountants have higher rates than average because of job stress and lots of time spent at work. On the flip side, occupations like farmers, athletes and performers get better rates.
Your spouse saves you money - Being married can get you a discount when buying auto insurance. Having a significant other translates into being more mature and responsible and it's proven that drivers who are married are more cautious.
Better crash test results mean better rates - Vehicles with good safety scores are cheaper to insure. The safest vehicles protect occupants better and lower injury rates translates into fewer and smaller insurance claims and lower rates for you.
Protect yourself with liability coverage - Liability coverage will protect you when a court rules you are at fault for personal injury or accident damage. It provides legal defense coverage which can cost thousands of dollars. Liability insurance is quite affordable when compared with rates for comp and collision, so buy as much as you can afford.
Do you know you're credit rating? - Having a bad credit history is a important factor in your rate calculation. If your credit history is not that good, you could potentially save money when insuring your by repairing your credit. People with high credit scores tend to be more responsible than drivers with lower credit scores.
Older drivers pay less - Mature drivers are more cautious drivers, file fewer claims and are safer drivers. Teen drivers are known to get distracted easily in a vehicle therefore auto insurance rates are much higher.
Lower rates with optional equipment - Driving a car with an alarm system can save you a little every year. Theft prevention features like LoJack tracking devices, vehicle tamper alarm systems or GM's OnStar system all hinder your car from being stolen.

Save $429 a year? Really?

Auto insurance providers like Progressive, Allstate and GEICO continually stream television and radio advertisements. They all say the same thing of big savings after switching your coverage to them. How do they all make almost identical claims?

All the different companies can use profiling for the type of customer that earns them a profit. An example of a driver they prefer could possibly be between 25 and 40, is a homeowner, and has great credit. A driver who fits that profile gets the lowest rates and is almost guaranteed to cut their rates substantially.

Drivers who don't qualify for the "perfect" profile will be quoted a higher premium which usually ends up with the driver buying from a lower-cost company. Company advertisements say "customers that switch" but not "drivers who get quotes" save that much money. That's why insurance companies can confidently advertise the savings. This emphasizes why drivers should get a wide range of price quotes. It is impossible to predict the company that will fit your personal profile best.

Learn more today

More tips and info about auto insurance is available at the Michigan Office of Financial and Insurance Regulation website. Michigan consumers can find a variety of consumer forms, read industry bulletins, and get help finding coverage.

Shop smart and save

Consumers change insurance companies for a number of reasons such as being labeled a high risk driver, high rates after DUI convictions, an unsatisfactory settlement offer and even delays in responding to claim requests. No matter why you want to switch, choosing a new insurance company is less work than it seems.

Low-cost auto insurance can be sourced online as well as from independent agents in Grand Rapids, so you should compare both to have the best selection. There are still a few companies who don't offer you the ability to get quotes online and these smaller companies work with independent agents.

In this article, we presented a lot of tips how to reduce auto insurance prices online. The most important thing to understand is the more price quotes you have, the better likelihood of reducing your rate. Consumers may even find the most savings is with the least-expected company.