Car insurance is necessary to protect you, your loved ones, your car, and even other drivers. There are many coverage options to choose from to meet your unique needs, whether you only want to obtain basic liability insurance or a full-coverage plan.
While insurance rates may have gone down for some due to the Michigan auto reform, that is only for those who can or want to opt out of buying personal injury protection. Though opting out may save you some money now, it could cost you more in the long run.
For more information on ways to save on auto insurance without paying for it later, continue reading below.
Auto insurance basics
In Michigan, it is mandatory to at least purchase liability, personal injury protection, and property protection insurance. Without the minimum required coverage, you risk a possible misdemeanor, fines, having your license suspended or revoked, and jail time.
While meeting the minimum requirements will keep you out of trouble, it will not always protect you or your property. There are some instances where you may have to pay for expenses out of pocket and set yourself up to be sued.
As always, weigh your options wisely, and speak with a professional and reliable insurance agent to determine how much coverage you need to protect yourself the best.
What your policy covers
Most car insurance policies consist of six types of coverage.
Bodily injury liability
This coverage applies to injuries that you or another person listed on your policy caused to someone else. It is essential to have a good amount of coverage because if you end up in a serious accident, you could be sued for a large sum of money.
Property damage liability
This coverage helps pay the costs of damage you cause to another person’s property while driving, such as damage to another vehicle, lamp posts, telephone poles, fences, or buildings.
Medical payments or personal injury protection (PIP)
PIP pays for your medical expenses or the expenses of another injured person due to an accident. At its broadest, it can cover lost wages, attendant care (such as in-home nursing), and replacement services (such as child care).
Even if you are at fault, collision coverage pays for damage to your vehicle after an accident. It also covers costs for property damage and damage to your vehicle as a result of an accident.
This coverage reimburses you for loss when damage results from theft, vandalism, fire, explosions, contact with animals, and natural disasters.
Uninsured and underinsured motorist coverage
Provides coverage if you’re in an accident with a driver who doesn’t have no-fault insurance or has an inadequate insurance policy.
Add-ons that can save you money
A fairly cheap addition to your policy that provides towing services, tire replacement, a jumpstart, fuel delivery, and more. If needed in the future, you wouldn’t have to pay a towing company or locksmith.
It covers the difference in value between what a car is worth and what is owed on it. This can be very helpful if your vehicle is totaled, as it will help you pay off the rest of the loan.
Mini Tort Coverage or Limited Property Damage
Coverage pays for up to $3,000 of damage to a vehicle that isn’t otherwise insured.
7 other ways to save
- Take advantage of multi-car discounts
Insuring a single vehicle may cost more than insuring multiple cars. Insurance companies typically offer what amounts to a bulk rate because they want more business. The more business you bring, the better the rate you may end up with.
- Get your entitled discounts
If you’re a teacher, nurse, serve in the military, or a good student with good grades, be sure to inform your insurance agent.
- Improve your credit score
While your driving record plays a large part in your insurance premium, some insurance companies consider your credit score when determining what your auto insurance costs will be.
- Don’t pay for coverage you don’t need
Take a good look at your policy and speak with your insurance agent to decide if there are add-ons you can drop.
- Bundle your policies
Bundling your policies, car, boat, property, business, etc., is one of the quickest and easiest ways to save you money.
- Review your policy
You can save yourself a lot of money by ensuring you don’t have old information on your insurance policy. If your teen child is no longer on your policy, you have moved, sold a vehicle, gotten a divorce, or married, your rates could change significantly. Any time you go through a significant life change you should review your policy.
- Consider insurance costs before buying a vehicle
Rather than looking into insurance after you go out and purchase a new vehicle, you can look into the rates on different cars. Differences in rates could be based on horsepower, safety equipment, vehicle size, and if it is eco-friendly.
Frost & Remer for your insurance needs
The best way to know what’s covered and find ways to save on auto insurance is by consulting directly with your agent.
At Frost & Remer, we know that understanding your auto insurance policy and what to expect in the inevitable is important to you.
Insurance can be expensive, which is why we enjoy offering our clients some of the best rates out there. By taking advantage of our multi-policy discounts, being a good student, infrequent driver, and insuring multiple vehicles at once, you can enjoy our more affordable premiums.
Contact us if you are interested in learning more about what we offer, scheduling an appointment, and receiving a free full risk assessment.