Tightwads Tips for Saving on Novi Auto Insurance
Expensive auto insurance can dwindle your savings account and put a big crunch on your finances. Comparison shopping is a smart way to reduce premiums and put more money in your pocket.
Drivers have multiple to buy insurance from, and even though it's nice to have a selection, it can be more challenging to compare rates.
It's important to compare prices on a regular basis because insurance rates are constantly changing. Just because you found the best price a few years ago the chances are good that you can find a lower rate today. Ignore everything you know about auto insurance because we're going to demonstrate how to use online quotes to find great coverage at a great price.
Be sure to get all your discounts
Car insurance can cost a lot, but you can get discounts that you may not know about. Certain discounts will be applied at quote time, but less common discounts must be manually applied in order for you to get them.
- Good Student Discount - A discount for being a good student can get you a discount of up to 25%. This discount can apply well after school through age 25.
- E-sign - Certain companies will discount your bill up to fifty bucks for buying your policy over the internet.
- Low Mileage - Fewer annual miles can earn lower rates on the low mileage vehicles.
- No Accidents - Drivers who don't have accidents can save substantially compared to bad drivers.
- Driver Safety - Completing a course in driver safety could cut 5% off your bill and easily recoup the cost of the course.
- Resident Student - Children who attend school more than 100 miles from home and do not have access to a covered vehicle can receive lower rates.
As a disclaimer on discounts, most credits do not apply to all coverage premiums. Most only reduce the cost of specific coverages such as medical payments or collision. Even though it may seem like all the discounts add up to a free policy, auto insurance companies aren't that generous. Any amount of discount will bring down the amount you have to pay.
To see a list of providers who offer auto insurance discounts in Michigan, follow this link.
Which Auto Insurance is Cheapest in Novi, Michigan?
There are several ways to compare auto insurance quotes, and some are less time-consuming than others. You can waste a lot of time talking to agents in Novi, or you can utilize online quoting to achieve your goal.
Many insurance companies enroll in a system that allows shoppers to only type in their quote data once, and every company can provide price quotes based on that information. This eliminates the need for quote forms to each individual auto insurance company.
To submit your quote information now, click to open in new window.
One minor caviat to using this type of form is you can't choose which carriers you will receive quotes from. So if you want to choose specific providers for rate comparison, we put together a list of low cost auto insurance companies in Michigan. Click to view list.
Which method you use is up to you, but ensure you are comparing identical quote information for every company. If the quotes have mixed coverages it will be next to impossible to decipher which rate is best in Novi. Just a small difference in coverages may cause a big price difference. Just remember that obtaining a wide range of quotes helps locate the best offered rates.
Good Decisions Result in Lower Rates
An important part of buying insurance is that you know some of the elements that help determine the price you pay for auto insurance. Knowing what impacts premium levels enables informed choices that can help you get lower auto insurance prices.
The following are a few of the "ingredients" auto insurance companies consider when setting your rates.
- Traffic violations increase rates - Even a single moving violation can boost insurance rates by as much as thirty percent. Careful drivers receive lower rates compared to drivers with tickets. Drivers who get flagrant violations like reckless driving, hit and run or driving under the influence may be required to submit a SR-22 or proof of financial responsibility with their state DMV in order to keep their license.
- Marriage brings a discount - Having a spouse can get you a discount when buying auto insurance. Marriage means you're more responsible and it's statistically proven that married drivers get in fewer accidents.
- Add-on coverages can add up - There are a ton of add-on coverages you can purchase on your auto insurance policy. Coverages for vanishing deductibles, better glass coverage and term life insurance are examples of these. These may sound like a good investment at first, but if they're wasting money eliminate them to save money.
- Occupation reflects on rates - Did you know that where you work can have an impact on rates? Occupations like lawyers, architects and financial analysts tend to have higher average rates attributed to high stress levels and lengthy work days. Conversely, occupations like pilots, engineers and performers receive lower rates.
- Big city or small town - Residing in a rural area has it's advantages when insuring your vehicles. City drivers have congested traffic and longer commutes to work. Fewer drivers translates into fewer accidents.
- Lower rates with optional equipment - Purchasing a vehicle that has an advanced theft prevention system can get you a discount on your auto insurance. Theft prevention features like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping your car from being stolen.
Is there truth in advertising?
Companies like State Farm and Allstate continually stream television and radio advertisements. All the ads say the same thing about savings after switching to their company. How does each company make almost identical claims?
All companies have a preferred profile for the driver that is profitable for them. For example, a preferred risk could possibly be between the ages of 30 and 50, insures multiple vehicles, and has a short commute. A driver who fits that profile will get the preferred rates and is almost guaranteed to save when switching.
Potential insureds who don't measure up to these standards will be charged more money which usually ends up with the driver buying from a lower-cost company. The ads state "people who switch" but not "drivers who get quotes" save that much. This is how companies can truthfully make the claims of big savings.
That is why drivers must get quotes from several different companies. It is impossible to predict which insurance companies will fit your personal profile best.
Shop smart and save
In this article, we presented a lot of information how to compare auto insurance prices online. The most important thing to understand is the more you quote, the better your chances of lowering your rates. Consumers could even find that the lowest rates come from a company that doesn't do a lot of advertising. These smaller insurers may have significantly lower rates on certain market segments compared to the large companies like .
Cheap auto insurance can be sourced online and also from your neighborhood Novi agents, and you should compare price quotes from both in order to have the best chance of saving money. Some insurance providers may not provide the ability to get a quote online and many times these regional insurance providers only sell through independent insurance agents.
For more Michigan auto insurance information
Additional information can be found on the website for the Michigan Office of Financial and Insurance Regulation through this link. Michigan consumers can file complaints about a company, get help finding coverage, discover disciplinary actions, and read industry bulletins.