No one in their right mind is fond of buying car insurance, especially when they are aware that they could find lower prices if they just compared rates. Since drivers have many options, it is very difficult to find the right car insurance provider.
Comparing car insurance rates can be a lot of work if you don’t know the most efficient way to do it. You can waste hours driving to local insurance agents in Farmington, or you could save time and use the web to get the quickest rates.
Most major companies enroll in a system where prospective buyers submit one quote, and each company then returns a price quote based on the submitted data. This system prevents you from having to do form submissions to every company.
To participate in this free quote system, click here (opens in new window).
The single downside to comparing rates this way is that consumers can’t choose which providers you will receive quotes from. If you wish to select specific insurance companies to compare, we have assembled a list of low cost car insurance companies in Michigan. Click here for list of insurance companies in Michigan.
You can use whichever method you prefer to find lower rates, just ensure you are comparing identical coverage information with every price quote. If the quotes have different coverage information it will be impossible to find the best deal in Farmington. Slightly different coverage limits can make a big difference in price. And when comparison shopping, comparing more rates from different companies helps increase your odds of locating the best price.
Choices you make can decrease your prices
A large part of saving on car insurance is knowing some of the things that aid in calculating car insurance rates. If you understand what determines base rates, this helps enable you to make changes that can earn you lower premium levels.
The items below are some of the most common factors car insurance companies consider when setting your rates.
- Occupation impacts premiums – Jobs such as military generals, social workers and accountants have the highest rates because of intense work-related stress and lots of time spent at work. On the other hand, careers like farmers, engineers and performers have lower than average premiums.
- More miles driven equals more premium – Driving more miles annually the more it will cost to insure it. Many insurance companies calculate rates partially by how you use the vehicle. Autos that are left in the garage get more affordable rates than those used for commuting. Make sure your vehicle rating properly reflects the proper vehicle usage, because improper ratings can cost you money.
- Amount of liability coverage – The liability section of your policy is the coverage that protects you when you are determined to be liable for causing personal injury or damage in an accident. It will provide legal defense coverage up to the limits shown on your policy. Liability is cheap compared to insuring for physical damage coverage, so buy as much as you can afford.
- Lower deductibles cost more – Coverage for physical damage, also known as collision and other-than-collision, insures against damage to your car. Examples of covered claims could be colliding with a building, collision with an animal, and windstorm damage. The deductibles tell how much you are required to pay if you file a covered claim. The more of the claim the insured is willing to pay, the less your company will charge you for insurance.
Find discounts on Farmington car insurance
Car insurance is easily one of your largest bills, but you might already qualify for some discounts that may help make it more affordable. Some discounts will apply when you complete an application, but some discounts are required to be asked about before they will apply.
- Student Discount for Driver Training – It’s a good idea to have your young drivers complete a driver education course in school or through a local driver safety program.
- Senior Citizens – Drivers that qualify as senior citizens may qualify for better car insurance rates.
- Student Discounts – Performing well in school could provide a savings of up to 20% or more. The discount lasts well after school through age 25.
- Buy New and Save – Insuring a vehicle that is new can save up to 30% because newer models have to meet stringent safety requirements.
- Payment Method – If you pay your bill all at once rather than paying monthly you can avoid monthly service charges.
- Federal Employees – Active or former government employment could cut as much as 10% off with certain companies.
- Discounts for Good Drivers – Safe drivers can get discounts for up to 45% lower rates as compared to drivers with claims.
- Memberships – Being in specific professional or occupational memberships or organizations could earn you a nice discount on your next car insurance statement.
Remember that most credits do not apply to your bottom line cost. Most only reduce the cost of specific coverages such as medical payments or collision. Despite the appearance that you can get free auto insurance, it’s just not the way it works. Any qualifying discounts will definitely lower the amount you pay for coverage.
A list of car insurance companies and some of the discounts are shown below.
- GEICO offers premium reductions for seat belt use, driver training, emergency military deployment, federal employee, anti-theft, five-year accident-free, and military active duty.
- SAFECO may offer discounts for anti-theft, drive less, bundle discounts, safe driver, and teen safety rewards.
- State Farm discounts include multiple policy, multiple autos, student away at school, defensive driving training, and accident-free.
- MetLife policyholders can earn discounts including claim-free, accident-free, defensive driver, multi-policy, good driver, and good student.
- 21st Century may include discounts for automatic seat belts, theft prevention, teen driver, defensive driver, air bags, and 55 and older.
- Progressive has savings for online quote discount, online signing, continuous coverage, multi-vehicle, and homeowner.
When getting a coverage quote, ask every prospective company to apply every possible discount. Some of the discounts discussed earlier might not be available to policyholders in Farmington. To see a list of car insurance companies with the best discounts in Michigan, click this link.
Cheaper car insurance can be purchased online in addition to many Farmington insurance agents, and you should compare rates from both to have the best selection. Some car insurance companies do not provide online price quotes and usually these regional insurance providers only sell through independent insurance agencies.
While you’re price shopping online, make sure you don’t skimp on critical coverages to save a buck or two. There are too many instances where an insured cut physical damage coverage only to regret they didn’t purchase enough coverage. Your strategy should be to buy a smart amount of coverage at a price you can afford, but do not skimp to save money.
We just covered some good ideas how to shop for car insurance online. The most important thing to understand is the more quotes you get, the better your comparison will be. Drivers may discover the lowest auto insurance rates are with a company that doesn’t do a lot of advertising. These companies often have lower premium rates on specific markets than their larger competitors like Allstate or State Farm.
Additional resources for Michigan consumers
Additional car insurance information can be read on the website for the Michigan Office of Financial and Insurance Regulation found here. Visitors are able to find disaster information, discover disciplinary actions, and find a variety of consumer forms.
The following information may also be useful.