Michigan, with its winding roads and scenic routes, is a state made for driving. As a Michigander, owning a car is a rite of passage and a necessity. However, auto insurance can be a significant expense for car owners in Michigan. In fact, according to a study by Insure.com, Michigan has the highest car insurance rates in the nation, with an average annual premium of $2,611. But fear not, there are steps you can take to keep your auto insurance costs down.
5 Tips to Keep Your Auto Insurance Rates Low in Michigan
Drive Safely and Avoid Car Accidents
- The most significant factor that affects your auto insurance rates is your driving record. If you have a history of accidents or traffic violations, you're considered a high-risk driver, and your rates will be higher. In Michigan, if you have a DUI or reckless driving conviction, your rates can increase by over 100%. On the other hand, if you have a clean driving record, you'll be rewarded with lower rates.
Consider Bundling Auto Insurance with Home Insurance & Life Insurance Policies
- Another way to keep your auto insurance costs down is by bundling your policies. Many insurance companies offer discounts to customers who have multiple policies, such as auto and home insurance, with them. According to a study by J.D. Power, bundling can save you up to 25% on your auto insurance premiums.
Address Credit Issues
- Did you know that your credit score can affect your auto insurance rates in Michigan? According to a study by WalletHub, Michigan drivers with poor credit pay an average of $2,607 more per year for car insurance than those with excellent credit. By improving your credit score, you can potentially save hundreds or even thousands of dollars on your annual premiums.
Increase Your Auto Insurance Deductible
- Your deductible is the amount you pay out of pocket before your insurance kicks in. The higher your deductible, the lower your monthly premiums will be. According to a study by the Insurance Information Institute, raising your deductible from $500 to $1,000 could save you up to 25% on your annual premium.
Shop Around for Car Insurance and Compare the Best Auto Insurance Rates
- Finally, one of the easiest ways to keep your auto insurance costs down is by shopping around and comparing rates. Insurance companies use different formulas to calculate premiums, so rates can vary widely. According to a study by NerdWallet, drivers in Michigan who compare quotes from multiple insurers can save an average of $1,400 per year.
While Michigan's car insurance rates may be high, there are steps you can take to keep your costs down. By driving safely, bundling your policies, addressing credit issues, increasing your deductible, and shopping around for the best rates, you can save money on your auto insurance premiums. So buckle up, hit the road, and enjoy all that Michigan has to offer without breaking the bank.