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3 ways to save on car insurance | Michigan auto insurance

posted Sep 30, 2015, 7:26 AM by Jason Grubbs   [ updated Dec 7, 2016, 12:39 PM ]
Here are three specific ideas to consider to reduce your auto insurance costs:

Higher Deductibles

If you carry "full coverage" this is typically comprised of comprehensive and collision coverage.

Comprehensive coverage responds for "other than collision" losses such as fire, theft, vandalism, glass breakage, and hitting a deer or other animal.

Increasing a $100 comprehensive deductible to $250 or $500 can provide a notable savings - plus with many insurance companies you can add a benefit waiving this deductible for glass repair or replacement eliminating any out-of-pocket expense for the most frequent type of comprehensive loss.

With collision coverage increasing a $250 deductible to $500 or $1,000 can provide a significant savings.  If you have "broad" form collision (see our blog: Understanding Broad, Basic, & Limited Collisionyou'll only be responsible for the deductible if you are at-fault in a collision.
Reduce Coverage

If your car is at least 10 years old you may want to evaluate whether it's worthwhile continuing to carry full coverage.

You can get a good estimate of the value of your vehicle based on the year, make, model, features, condition, and mileage at sites like Kelley Blue Book.

Are there additional benefits included with your policy - such as rental reimbursement, new car replacement, or loan protection - that you could forego to reduce your costs?  Keep in mind additional benefits also mean additional cost.

For example, rental reimbursement benefits can cost anywhere from $40 - $80 per year for each vehicle.
  • Do any local body shops offer complimentary loaners if your car was in for repairs?
  • Could you get by if your car was temporarily sidelined due to an accident?
Take Advantage of Discounts

Ask your agent about additional discounts that may be applicable for:

  • Members of qualifying groups or organizations (AARP, credit unions, alumni associations, MEA, hospital employees, public safety officials)
  • Multiple policies
  • Garaged vehicles
  • Good students
  • Students away at college without a vehicle
  • Retired drivers who no longer need income replacement benefits
  • Retired drivers with low annual miles
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