What Can I Do If My Auto Insurance Rates Are Expensive in Michigan??

What Can I Do If My Auto Insurance Rates Are Expensive in Michigan??

May 16, 2023

Imagine cruising down the roads of Michigan, admiring the stunning views of the Great Lakes State in your car. It's a beautiful feeling, isn't it? But what if you realize that you're paying too much for your auto insurance? Unfortunately, that feeling is not so pleasant. Auto insurance rates can be higher in Michigan compared to other states in the US, but that doesn't mean you should settle for sky-high rates. 

What Should I Do if My Auto Insurance Premium is Expensive in Michigan?

Shop around in Michigan for the best auto insurance deal

  • One of the first things you can do if you think your auto insurance rates are too high is to shop around for a better deal. Michigan's auto insurance market is competitive, with various insurance providers offering different rates. According to a study by the Michigan Department of Insurance and Financial Services, the average annual auto insurance premium in Michigan is $2,239. However, this varies depending on the insurance provider, with some companies charging significantly more or less.

Look for auto insurance discounts in Michigan

  • Another way to reduce your auto insurance rates is by looking for discounts. Many insurance providers offer discounts to policyholders, depending on factors like your driving record, age, occupation, and more. For example, if you have a clean driving record, you may qualify for a safe driver discount. If you're a student, you may qualify for a good student discount. According to data from the Insurance Information Institute, discounts can reduce the cost of auto insurance by up to 25%.

Consider raising your auto insurance deductible

  • Your deductible is the amount you pay out of pocket before your insurance policy kicks in. Raising your deductible can lower your auto insurance rates, as you'll be taking on more risk. However, you should make sure you have enough savings to cover your deductible in case of an accident. According to a study by Bankrate, increasing your deductible from $500 to $1,000 can save you up to 11% on your auto insurance premiums.

Improve your credit score

  • Believe it or not, your credit score can affect your auto insurance rates. Insurance providers use credit-based insurance scores to determine your rates, with higher scores resulting in lower rates. According to a study by the Federal Trade Commission, policyholders with poor credit scores pay up to 91% more in auto insurance premiums than those with excellent credit scores. Therefore, improving your credit score can lead to significant savings on your auto insurance rates.

Speak with an auto insurance professional, insurance agent or broker - like us!

  • Finally, if you're struggling to find a better deal or reduce your rates, consider speaking with an agent or broker. They can help you navigate the complex auto insurance market, provide insights on discounts and savings, and help you understand your policy's terms and conditions. Additionally, they can help you find an insurance provider that suits your needs and budget.

If you think your auto insurance rates are too high, there are several steps you can take to lower them. You can shop around for better deals, look for discounts, consider raising your deductible, improve your credit score, and speak with an agent or broker. By taking these steps, you can save money on your auto insurance rates and enjoy the peace of mind that comes with having adequate coverage while driving on Michigan's beautiful roads.