How to Know You're Throwing Money Away for Auto Insurance in Litchfield

Are you tired of robbing Peter to pay Paul each month for car insurance? Your situation is no different than most other car owners in Michigan. Drivers have multiple to pick from, and although it's nice to have multiple companies, it can be more challenging to compare rates.

It's important to take a look at other company's rates before your policy renews since insurance rates are constantly changing. Just because you found the best rates last year you will most likely find a better rate today. Don't believe everything you read about auto insurance online, so I'm going to show you some great ways to put money back in your pocket.

Take advantage of discounts

The price of auto insurance can be rather high, but you can get discounts that you may not know about. Certain discounts will be triggered automatically when you quote, but some may not be applied and must be asked for before you get the savings. If you're not getting every credit available, you are throwing money away.

New Vehicle Savings - Buying coverage on a new vehicle is cheaper because new vehicles have to meet stringent safety requirements.
No Accidents - Claim-free drivers pay less as compared to drivers who are more careless.
Multiple Cars - Insuring all your vehicles on one policy qualifies for this discount.
Employee of Federal Government - Active or retired federal employment could cut as much as 10% off with select insurance companies.
Passive Restraints and Air Bags - Factory air bags may earn rate discounts of 20% or more.
Drivers Education - Make teen driver coverage more affordable by requiring them to complete a driver education course if offered at their school.

As a disclaimer on discounts, some of the credits will not apply to the entire cost. Most only apply to the price of certain insurance coverages like collision or personal injury protection. So despite the fact that it appears adding up those discounts means a free policy, auto insurance companies aren't that generous. Any amount of discount will bring down your overall premium however.

Are auto insurance companies telling the truth?

Michigan drivers get pounded daily by advertisements for the lowest price auto insurance by GEICO, State Farm and Progressive. They all seem to have a common claim about savings if you change to their company.

How does each company say the same thing? This is how they do it.

Insurance companies can use profiling for the driver that earns them a profit. A good example of a desirable insured might be profiled as between the ages of 40 and 55, is a homeowner, and has great credit. A propective insured that hits that "sweet spot" is entitled to the best price and most likely will save when switching.

Drivers who don't qualify for these standards will have to pay a higher premium and this can result in business not being written. Company advertisements say "drivers who switch" not "people who quote" save that much. That's why companies can truthfully advertise the savings.

Because of the profiling, you should get quotes from several different companies. It's not possible to predict the company that will give you the biggest savings.

Learn more today

Additional information can be read on the website for the Michigan Office of Financial and Insurance Regulation. Click here for link. Michigan drivers can file complaints about an insurance agent or broker, read industry bulletins, report car insurance fraud, and read enforcement actions against agents and companies.

Also read more on Auto Insurance 101 and this page where you can research Litchfield insurance agents.

In the end, you save

As you prepare to switch companies, make sure you don't buy lower coverage limits just to save a few bucks. In many instances, an accident victim reduced full coverage and found out when filing a claim that the small savings ended up costing them much more. The ultimate goal is to buy enough coverage for the lowest price.

Cheap auto insurance can be sourced on the web and also from your neighborhood Litchfield agents, so you should be comparing quotes from both to have the best selection. There are still a few companies who may not provide you the ability to get quotes online and most of the time these small insurance companies sell through independent agents.