Have you finally had enough of scraping nickels together to pay high auto insurance rates every month? You have the same problem as many other Michigan consumers. Due to the increasing number of choices of insurance companies, it can be impossible to choose a more affordable auto insurance provider.
Locating the lowest cost auto insurance coverage in New Baltimore is simple if you know the tricks. In a nutshell, every driver who is required by state law to have auto insurance will be able to cut their insurance bill. But Michigan vehicle owners must learn the methods companies use to price insurance differently and use this information to your advantage.
Seven things that affect insurance prices
It’s important that you understand the rating factors that play a part in calculating the rates you pay for auto insurance. When you understand what impacts premium levels, this helps enable you to make changes that may reward you with much lower annual insurance costs.
- Your address can influence rates – Living in smaller towns and rural areas of the country has definite advantages when buying auto insurance. Drivers in populated areas tend to have more aggressive driving styles and a longer drive to work. Fewer drivers means fewer accidents as well as less vandalism and auto theft.
- Does your job raise your premiums? – Did you know your career choice can influence rates? Jobs like fire fighters, business owners and emergency personnel generally have higher average rates because of intense work-related stress and long work hours. Other jobs like professors, historians and the unemployed pay the least.
- Save by staying claim free – If you are a frequent claim filer, you can pretty much guarantee much higher rates or policy non-renewal. Car insurance companies in Michigan generally give most affordable rates to policyholders who are claim-free. Auto insurance is designed for claims that you cannot pay yourself.
- Premiums increase with policy add-ons – Policies have additional extra coverages that can waste your money when buying auto insurance. Things like rental car coverage, high-cost glass coverage, and extra life insurance coverage may be wasting your money. These coverages may sound good initially, but if you’ve never needed them in the past consider taking them off your policy.
- Better credit means lower premiums – An insured’s credit rating can be a huge factor in determining premium rates. People with good credit tend to be better drivers and file fewer claims than drivers with poor credit scores. Therefore, if your credit rating is lower than you’d like, you could pay less to insure your vehicle by spending a little time repairing your credit.
- Being married can lower prices – Getting married can actually save you money when buying auto insurance. Having a significant other generally demonstrates drivers are more mature and insurance companies like that married couples file fewer claims.
- Safeguard your assets with liability protection – The liability coverage on your policy is the coverage that protects you when you are determined to be liable for physical damage or personal injury to other. Your liability coverage provides legal defense to attempt to prove you were not liable. Liability is cheap compared to comp and collision, so do not cut corners here.
To find cheaper prices, there are a couple of ways to compare rate quotes from auto insurance companies in your area. The fastest way to compare insurance prices is to get quotes online. It’s really quite simple and can be done in a couple minutes as outlined below.
- If you don’t have a lot of time, the easiest way consumers can make multiple comparisons is a comparison rater form (click to open form in new window). This type of form eliminates the need for separate quote forms for every company. A single, simple form will get you price quotes from many national carriers.
- A slightly less efficient method to find more affordable insurance is to take the time to go to each company’s website and fill out their own quote form. For examples sake, let’s assume you want to see prices from USAA, Allstate and Travelers. To get rate quotes you would need to navigate to each company’s site to input your insurance information, and that explains why we recommend the first method. To view a list of companies in New Baltimore, click here.
- The most difficult way to find cheaper rates is to waste gas driving to local New Baltimore insurance agencies. Doing it all online has reduced the need for local agents unless you have a complicated situation and need the personal advice of an agent trained in personal lines coverage. Some companies do allow you to compare the best prices online but still have the advice of a local agent.
However you get your quotes, make sure you are using apples-to-apples coverage information for every company. If you are comparing different liability limits it will be impossible to make a fair rate comparison in New Baltimore. Just slight variations in insurance coverages could skew the results. And when quoting auto insurance, remember that making a lot of price comparisons will increase your chances of finding a better price.
Don’t listen to company ads
Companies like State Farm, Allstate and GEICO continually stream ads on TV and radio. All the ads tend to make the same promise about how much you will save if you move to their company. But how can every company lower your premium rates? Just pay attention to how they say it.
Different companies look for specific characteristics for the type of customer that will not have excessive claims. For example, a preferred risk might have to be between the ages of 30 and 45, carries full coverage, and drives less than 7,500 miles a year. Any person that hits that “sweet spot” receive the lowest rate quotes and as a result will probably save quite a bit of money when switching.
Potential insureds who do not meet the ideal profile will be quoted a higher rate and this can result in the customer not purchasing. The wording the ads use say “customers who switch” but not “all drivers who get quotes” save that much money. That’s why companies can truthfully make the claims of big savings.
Each company has different criteria, so it is so important to do a price quote comparison at every renewal. It is impossible to guess which auto insurance company will have the best prices.
Discount New Baltimore auto insurance quotes
Companies do not advertise their entire list of discounts very clearly, so the following is a list of some of the more common and also the lesser-known discounts that may be available. If you are not receiving all the discounts possible, you are just wasting money.
- New Vehicle Savings – Buying insurance coverage on a new vehicle can be considerably cheaper because newer models keep occupants safer.
- Memberships – Being a member of certain professional organizations could trigger savings when shopping for auto insurance.
- Auto/Home Discount – When you have multiple policies and insure them both with the same insurance company you could earn a discount of nearly 15% which can help you find .
- Drive Less and Save – Maintaining low annual mileage could earn cheaper prices.
- Homeowners Savings – Just being a homeowner can save a few bucks because maintaining a house shows financial diligence.
- Auto/Life Discount – Companies who offer life insurance give a lower rate if you buy a life policy as well.
- Discount for Good Grades – Getting good grades can get you a discount of up to 25%. Earning this discount can benefit you until age 25.
- Air Bags and Passive Restraints – Factory options such as air bags and/or automatic seat belt systems could see savings of more than 20%.
Don’t be surprised that some credits don’t apply to the entire cost. Most only apply to the cost of specific coverages such as comprehensive or collision. Just because you may think you would end up receiving a 100% discount, companies don’t profit that way.
Companies and their offered discounts are outlined below.
- American Family has discounts for bundled insurance, mySafetyValet, good driver, Steer into Savings, good student, and early bird.
- Farm Bureau offers premium reductions for safe driver, good student, 55 and retired, multi-policy, and youthful driver.
- State Farm policyholders can earn discounts including multiple policy, safe vehicle, student away at school, driver’s education, accident-free, Steer Clear safe driver discount, and Drive Safe & Save.
- Travelers may offer discounts for driver training, good student, payment discounts, hybrid/electric vehicle, and multi-policy.
- The Hartford includes discounts for driver training, defensive driver, bundle, air bag, and anti-theft.
- GEICO may include discounts for five-year accident-free, multi-policy, air bags, membership and employees, and good student.
- Progressive may have discounts that include online quote discount, good student, continuous coverage, homeowner, multi-policy, and online signing.
When getting a coverage quote, ask every insurance company how many discounts you can get. Discounts may not be offered in New Baltimore.
You may require the services of an insurance agent
A small number of people still prefer to buy from a local agent and there is nothing wrong with that. One of the best bonuses of comparing insurance prices online is that drivers can save money and get cheap auto insurance quotes and still choose a local agent. Supporting local insurance agencies is important especially in New Baltimore.
To make it easy to find an agent, after completing this quick form, the quote information is sent to agents in your area who will return price quotes for your auto insurance coverage. It simplifies rate comparisons since you won’t have to search for any insurance agencies since price quotes are sent immediately to your email address. You’ll get the best rates without the usual hassles of price shopping. If you need to compare rates from a particular provider, just jump over to their website and fill out their quote form.
When searching for a reliable agent, there are two different types of agents and how they operate. Agencies in New Baltimore can either be independent agents or captive agents depending on their employer.
Independent Auto Insurance Agents (or Brokers)
Agents in the independent channel are normally appointed by many insurers so they can quote policies with lots of companies and get you the best rates possible. If your premiums go up, they simply move the coverage in-house and you won’t have to switch agencies.
When comparing rate quotes, you will definitely want to check rates from independent agents for the best price selection.
Captive Insurance Agents
Captive agencies generally can only insure with one company such as State Farm, Allstate, or Farmers Insurance. These agents are not able to shop your coverage around so they are skilled at selling on more than just price. Captive insurance agents are well trained on their products and sales techniques which aids in selling service over price.
Selecting an auto insurance agent should include more criteria than just the quoted price. These are some questions you should get answers to.
- Do they have 24-hour customer assistance?
- Do they review policy coverages at every renewal?
- Do they have designations such as AIC, CPCU, or CIC?
- Will high miles depreciate repair valuations?
- What are their preferred companies if they are an independent agency?
- What is their Better Business Bureau rating?
- What are the financial ratings for the companies they represent?
- Are aftermarket or OEM parts used to repair vehicles?
Will just any policy work for me?
When it comes to buying coverage, there isn’t really a “best” method to buy coverage. Everyone’s needs are different and a cookie cutter policy won’t apply. Here are some questions about coverages that can help discover whether your personal situation would benefit from professional advice.
- Can I afford to buy a different vehicle if my vehicle is totaled?
- Do I have coverage for damage caused while driving under the influence?
- Does my insurance cover my expensive audio equipment?
- Does medical payments coverage apply to all occupants?
- When do I need to add a new car to my policy?
- What is the difference between comprehensive and collision coverage?
If you don’t know the answers to these questions but you think they might apply to your situation, you may need to chat with an insurance agent. If you don’t have a local agent, take a second and complete this form or go to this page to view a list of companies.
Much more information about auto insurance in Michigan can be read on the . Click here for link. Consumers can file complaints about an insurance agent or broker, find out which companies have the most complaints, read enforcement actions against agents and companies, and read state legal mandates and laws.
More comparisons equals lower rates
As you restructure your insurance plan, don’t be tempted to skimp on coverage in order to save money. There are too many instances where someone dropped comprehensive coverage or liability limits only to discover later that the small savings ended up costing them much more. Your goal is to purchase a proper amount of coverage at an affordable rate while still protecting your assets.
Discount auto insurance is possible online as well as from independent agents in New Baltimore, and you should be comparing both to have the best chance of lowering rates. Some insurance providers may not provide the ability to get quotes online and usually these small, regional companies work with independent agencies.