Car insurance can be very expensive, especially if you live in a no-fault state, such as Michigan. However, there are some steps you can take to lower it. Here's a look at three options worth talking to your auto insurance agent about.
Do You Qualify For Any Discounts?
Many large employers have deals with a specific automobile insurance company. You can also usually get a discount if you are a member of specific organizations, such as the American Automobile Association (AAA.) Other affiliation discounts may be available for students in good standing or alumni of a particular school.
If you don't drive very much, you can also qualify for a discount. The more miles a person drives, the more likely they are statistically to be involved in an accident. If you are one of the many millions of people who only drive a few miles each week, such as to the grocery store and back or you work from home and don't have a daily commute, be sure your insurance agency is aware of this.
Do You Really Need That Much Coverage?
Most states require Bodily Injury Liability, which covers the medical expenses of anyone injured in an accident, and Property Damage Liability, which covers the cost to repair any property damage done. This is usually another vehicle, but it could be things like someone's mailbox or fence, too.
Collision and comprehensive insurance are a good idea to have on a newer car. In fact, as long as you have a car loan, these riders will most likely be required by your finance company. Collision covers any damage that happens to your vehicle in the event of a collision with another vehicle or a building. Comprehensive covers any damage that results from theft, engine fires, vandalism, or anything else that isn't a result of a collision.
While these are certainly good things to have, it doesn't always pay to have this coverage. If your vehicle is paid for and getting older, you may be better off setting aside the money you would be paying into savings instead of paying the premiums for full coverage. In the event something did happen, you can choose to either have it repaired or use that money towards a new one.
Improve Your Credit Score
Most auto insurers use your credit score to help determine their risk of insuring you. If your credit is poor, do what you can to raise it. Once you have addressed any credit report issues, ask your agent to run you a new quote.
For more information, contact companies like Phillip R Davis Insurance.
Share18 June 2018
Like many new homeowners, when my husband and I purchased our first home, we were on a tight budget. We knew we needed a good home insurance policy, but we had a difficult time finding one that provided the coverage we needed in our flood prone area of the country at a price we could afford. We spoke to many insurance agents and finally found one that covered everything we needed at a reasonable price. We learned a lot about home insurance along the way, and we are eager to share what we have learned with other new homeowners who need the advice! We plan to post new home insurance tips and news often, so come back soon!