Ludington Auto Insurance For Less Than You're Paying Now

Finding better rates for Ludington auto insurance is challenging for consumers new to comparison shopping online. Drivers have so many choices that it can easily become a challenge to compare prices in Ludington.

It's important to compare prices once or twice a year since insurance rates are constantly changing. Just because you found the best deal last year a different company probably has better rates today. So forget all the misinformation about auto insurance because it's time to teach you the proper way to find lower rates on auto insurance.

More discounts equal less premium

Car insurance can cost a lot, but you can get discounts that you may not know about. Certain discounts will be applied when you quote, but some must be asked for prior to getting the savings. If you don't get every credit available, you are throwing money away.

Passive Restraint Discount - Vehicles with factory air bags can receive discounts up to 30%.
Payment Method - By paying your policy upfront instead of monthly or quarterly installments you may reduce your total bill.
One Accident Forgiven - Some insurance companies will forgive one accident before your rates go up if you are claim-free for a set time period.
Multi-policy Discount - If you have multiple policies with the same insurance company you will save at least 10% off all policies.
No Accidents - Claim-free drivers can earn big discounts compared to drivers who are more careless.

It's important to note that some of the credits will not apply to the entire cost. Some only reduce individual premiums such as medical payments or collision. Just because it seems like all the discounts add up to a free policy, you're out of luck. But any discount will help reduce your premiums.

Good Decisions Result in Lower Rates

Smart consumers have a good feel for the factors that help determine auto insurance rates. When you know what positively or negatively influences your rates enables informed choices that can help you get much lower annual insurance costs.

The following are some of the factors auto insurance companies consider when setting your rates.

Poor credit can mean higher rates - Your credit history is a important factor in your rate calculation. Therefore, if your credit is not that good, you could potentially save money when insuring your by improving your rating. Drivers who have high credit scores tend to be better drivers and file fewer claims than those with lower credit scores.
Special features that cut premiums - Driving a car with an alarm system can help lower your rates. Theft prevention features such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all hinder auto theft.
Women pay lower rates - The statistics show women tend to be less risk to insure than men. However, this does not mean men are worse drivers. Both sexes cause accidents at about the same rate, but men have costlier accidents. Men also get more serious tickets like reckless driving and DUI. Young males are most likely to cause an accident and therefore are the most expensive to insure.
Multiple policies with one company can save - Many insurance companies give discounts to people who buy several policies from them, otherwise known as a multi-policy discount. Even with this discount, you still need to compare other company rates to ensure the best deal. You may still find better rates by splitting coverages up.
Occupation reflects on rates - Did you know your auto insurance rates can be affected by your occupation? Occupations like doctors, social workers and stock brokers tend to have the highest rates because of high stress and long work days. On the other hand, jobs such as farmers, students and performers receive lower rates.
A clean driving record saves money - Your driving record has a big impact on rates. Even a single speeding ticket can boost insurance rates twenty percent or more. Careful drivers have lower premiums compared to drivers with tickets. Drivers who get flagrant violations such as reckless driving, hit and run or driving under the influence may be required to file a proof of financial responsibility form (SR-22) with the DMV in their state in order to keep their license.
Keep rates low by being claim-free - Insurance companies in Michigan generally give discounts to drivers who are claim-free. If you frequently file small claims, you can look forward to either a policy non-renewal or much higher rates. Your insurance policy is intended to be relied upon for major claims that would cause financial hardship.

Switch companies and save? Really?

Michigan drivers get pounded daily by advertisements for the lowest price auto insurance by State Farm and Allstate. All the ads have a common claim that you can save after switching to their company.

But how can every company say the same thing?

Insurance companies can use profiling for the driver that earns them a profit. An example of a preferred risk might be profiled as between the ages of 30 and 50, has no tickets, and drives newer vehicles. A propective insured that hits that "sweet spot" will get very good rates and therefore will save a lot of money.

Potential customers who do not match this ideal profile will be charged a higher premium and this can result in business not being written. The ads say "customers that switch" not "everyone that quotes" save that much. That's why insurance companies can claim big savings.

That is why drivers should get a wide range of price quotes. It's not possible to predict the company that will give you the biggest savings.

More Michigan auto insurance information

More information is available on the Michigan Office of Financial and Insurance Regulation website located here. Michigan drivers can find out industry alerts, view a list of available companies, and learn about insurance regulations.

Also read more on NAIC.org's Understanding your Policy and this directory of Ludington insurance agents.

In the end, you save

Throughout this article, we presented a lot of techniques to reduce auto insurance prices online. The most important thing to understand is the more you quote, the more likely it is that you will get a better rate. You may even discover the lowest rates come from some of the lesser-known companies.

Drivers change insurance companies for a number of reasons such as poor customer service, unfair underwriting practices, denial of a claim and even policy non-renewal. It doesn't matter why you want to switch choosing a new insurance company is less work than it seems.

Lower-priced auto insurance can be sourced on the web and also from your neighborhood Ludington agents, and you should compare price quotes from both to have the best rate selection. A few companies may not provide you the ability to get quotes online and many times these smaller companies only sell through independent insurance agents.