Why You need Discounts for Michigan Car insurance
Michigan is always one of the most expensive states in the country when it comes to car insurance costs. While the national average for car insurance is usually between $1,00 and $1,200 per year. Michigan’s average annual cost for auto insurance is known to average over $2,100. Use the discounts below to help reduce the cost of your auto insurance policy.
One of the most significant car insurance discounts that Michigan companies offer is the Multiple Car Discount. If you live with a relative and both your cars are with the same company you will qualify for this discount.
If you carry the multiple policies with the same carrier, such as car and home, you will be eligible for this discount.
Young Driver Programs
Most Carriers offer some form of young drivers, driver education, or good student programs that will help if you have a young driver in your house.
Carriers offer a variety of different discounts that can provide savings such as an anti-theft discount, low income, low driving mileage, senior discounts, low income, single drivers, and good driving record.
Coverage changes that lower your Michigan car insurance
Examining your coverage is a great way to save on your car insurance. The three areas to change to affect your premium are bodily injury limits, personal injury protection, and physical damage.
Bodily Injury Limits (BI)
The state requires you to carry these minimum limits:
- $50,000 per person for an injury or dies in an accident
- $100,000 for each accident if several people have injuries or die in the accident
- $10,000 for property damage in another state
These limits are usually shown as 50/100/10 but can go as high as 1 million/1million/1 million. Choosing the state minimums will make your premium lower than choosing higher limits. The trade-off is if someone sues you for an accident, you will have to pay more money out of pocket to cover the lawsuit. So if you have a lot of assets to protect, you should stay with the higher limits.
Physical Damage Coverage’s:
Collision and Comprehensive coverage- The higher the deductible, the lower your insurance will be, but the trade-off is that you pay more to repair your car. An example is that if you have a $1000 deductible, anything under that deductible will be your responsibility to fix.
Change your Michigan Auto Insurance Medical Options
Personal Injury Protection (PIP)
In Michigan, PIP comes in 6 choices:
- Unlimited PIP coverage (This option can coordinate with qualified health coverage as long as the health policy does not exclude or limit auto accident injuries and has an individual deductible of less than $6,000.)
- $500,000 PIP coverage option
- $250,000 PIP coverage option
- $250,000 PIP coverage option with Medical exclusions. This choice is for drivers who have qualified health coverage (not Medicaid or Medicare) that covers auto accident injuries. Drivers can exclude household relatives who also have qualified coverage to lower the PIP premium.
- $50,000 – Medicaid eligible consumer’s option
- Opt-out of PIP coverage – Available if the named insured has Medicare (Parts A and B). All household relatives must have another auto insurance policy or health insurance that will cover auto accident injuries
The opt-out options will provide the maximum savings if you qualify. Otherwise, the 250,000 will be the lowest premium option.
Bonus Car insurance Info:
Finally, most insurance carriers in Michigan use credit scoring, so you should be aware of your credit and how it can impact your rate. For a more in-depth look at Michigan, car insurance coverage’s click our link Understanding Michigan auto insurance for more information.