Car insurance is a necessary expense for all drivers in Michigan. However, there are common mistakes that people make when purchasing car insurance in the state. With Michigan being one of the more expensive states in the country and one of the most confusing states when it comes to coverage, it’s important to understand what you’re purchasing with your policy. Here are the top 10 car insurance mistakes to avoid in Michigan.
- Not purchasing the “minitort” or limited property damage coverage. This coverage is probably the least expensive piece of your car insurance policy, and it allows you to go after another person’s insurance if you weren’t at fault in an accident.
- Picking the wrong deductible. While it’s important to try and keep the cost of insurance down, most people commonly shoot for a $1,000 deductible. However, if you can’t afford that amount in case of a claim, it might be worth lowering the deductible to $500.
- Basing the cost of insurance on price, not value. It’s important to figure out if the agent who created your policy understands your situation and to have a review of your policy on a regular basis.
- Shopping at the big box companies. While these companies are great in some states, they are typically more expensive in Michigan. Instead, consider going with an independent agent who can shop multiple companies and find the best deal for your specific needs.
- Not shopping around. Don’t assume that the first quote you receive is the best deal. It’s important to shop around and compare quotes from multiple companies to find the best coverage for your needs.
- Not considering the value of your car. The cost of insurance for a brand new car is going to be much higher than for an older car. Consider the value of your car when choosing coverage.
- Not considering your driving history. Your driving history can have a big impact on the cost of your insurance. If you have a clean driving record, it’s likely that you’ll pay less for insurance than someone with a history of accidents or traffic violations.
- Not considering the coverage you actually need. Don’t just go with the minimum coverage required by law. Consider the coverage you actually need based on your specific situation.
- Not considering the location of your car. If you park your car in a high-crime area, it’s likely that your insurance will be more expensive. Consider where you park your car when choosing coverage.
- Not considering the coverage options available. Don’t assume that you have to choose between liability coverage and comprehensive coverage. There are many other options available, including collision coverage, personal injury protection, and uninsured/underinsured motorist coverage.
In conclusion, understanding these common mistakes can help you make an informed decision when purchasing car insurance in Michigan. By considering your specific needs, shopping around, and understanding the coverage options available, you can ensure that you are getting the best coverage at a reasonable price.
