How Much Does Car Insurance Cost for Active Military in Michigan?

The type of vehicle requiring insurance is one of the largest factors when consumers are trying to find cheap auto insurance for active military in Michigan. Vehicles with limited speed and performance, good crash test ratings, or a positive history of liability claims will cost quite a bit less to insure than adrenaline junky models.

The information below showcases auto insurance prices for a handful of the most budget-friendly vehicles to buy coverage for.

Data variables include married female driver age 50, no speeding tickets, no at-fault accidents, $500 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, multi-policy, multi-vehicle, homeowner, and claim-free. Table data does not factor in specific location information which can change prices substantially.

Cost estimates assume married female driver age 50, no speeding tickets, no at-fault accidents, $500 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, multi-policy, safe-driver, homeowner, and multi-vehicle. Price information does not factor in Michigan location which can change insurance rates greatly.

Price data assumes married female driver age 50, no speeding tickets, no at-fault accidents, $500 deductibles, and Michigan minimum liability limits. Discounts applied include homeowner, claim-free, multi-policy, safe-driver, and multi-vehicle. Rate information does not factor in specific location information which can affect coverage rates noticeably.

One of the many factors that help determine the amount you pay each year for auto insurance is where you keep your car in Michigan. Areas with more people or higher crime rates like Detroit, Southfield, and Flint tend to pay slightly more, whereas areas with fewer weather claims and lower vehicle theft rates profit from lower rates.

The next table ranks the most expensive cities in Michigan for active military to buy auto insurance in.

Rate information is approximated as the garaging address in Michigan can raise or lower auto insurance rates substantially.

Full coverage or liability only

Finding cheap auto insurance for active military in Michigan is the goal of the majority of vehicle owners, and one great way to buy cheaper insurance is to buy liability only. The information below illustrates the comparison of insurance prices with full physical damage coverage compared to only buying the minimum liability limits required in Michigan. The premiums are based on a clean driving record, no claims, $250 deductibles, marital status is single, and no discounts are taken into consideration.

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Averaged out for all age groups, physical damage insurance costs $3,603 per year more than just buying liability insurance. A very common question is if you should buy full coverage at all. There is no set guideline that works best for making the decision to drop physical damage insurance, but there is a general school of thought. If the annual cost of comprehensive and collision coverage is 10% or more of any settlement you would receive from your insurance company, then you might want to think about dropping full coverage.

For example, let’s assume your vehicle’s replacement cost is $10,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $9,000 after paying the physical damage deductible. If you are currently paying more than $900 a year to have full coverage, then you may want to consider only buying liability coverage.

There are a few situations where removing full coverage is not financially feasible. If you still owe a portion of the original loan, you must maintain physical damage coverage as part of the loan conditions. Also, if you cannot afford to purchase a different vehicle if your current one is totaled, you should keep full coverage.

How accidents and violations affect rates

The easiest method to maintain cheap auto insurance rates in Michigan for military personnel is to be a careful driver and avoid traffic citations and accidents. The illustration below demonstrates how traffic citations and accidents influence car insurance rates for different age categories. The premium estimates are based on a married male driver, comprehensive and collision coverage, $250 deductibles, and no discounts are factored in.

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The data charted above shows the average cost of car insurance in Michigan per year with a clean driving record and no accidents is $3,403. Add in one speeding ticket and the average cost surges to $3,906, an increase of $503 each year. Then add two accidents along with the one speeding ticket and the yearly cost of auto insurance for active military increases to an average of $8,126. That’s an increase of $4,723, or $394 per month, just for being a careless driver!

Ideas to find budget-friendly insurance for active military

The list below details some of the better thrifty solutions that can help Michigan drivers buy the cheapest coverage.

• Maintain a safe distance and avoid accidents
• Bundle home and auto and save
• Safe vehicles cost less to insure
• Do not get tickets
• Do not file small claims
• Shop around once a year for cheaper rates

That last tip is very necessary, as was stressed in this article. Insurance prices can change significantly in a year, so don’t be tentative to buy a policy from a new company if you find a cheaper price. Many consumers stick with the same company and that’s fine, but it’s not recommended if that loyalty ends up costing hundreds every year. Spend a few minutes and shop around to find cheaper auto insurance for active military.