Michigan – Tips for Saving on Car Insurance


The state of Michigan is one of the thirteen states that follow the no fault system of rules. Every other state follows the tort system of rules. In the no fault system, every person or driver is paid for the damages incurred in case of an accident by his insurance company. This payment must be done irrespective of whose fault the accident was. However, most people do not want to pay for damages that are not their mistakes. Hence, the not at fault party is allowed to sue the at fault part in case the damages go beyond a pre defined limit. The pre defined limit changes from state to state.

The state of Michigan has also made auto insurance mandatory and fixed the minimum liability amounts. The minimum amounts are twenty thousand dollars for bodily injury per person and forty thousand dollars for bodily injury in total per accident. Property damage coverage for ten thousand dollars is also mandatory. Property protection insurance for the amount of a million dollars is made compulsory as is personal injury protection. Bodily injury will cover medical costs of the victim while property damage property protection insurance will pay for damages to the victim’s car while in an accident or if it has been stationary and parked. They will also cover damages to buildings, fences and lamp posts. Personal injury protection will pay for the driver’s medical costs and lost wages.

The mandatory amounts of insurance are the minimum amounts and most accidents will cost a lot more. Hence, one must save in any way they can as far as auto insurance is concerned.

It is possible to save a lot of money by shopping properly. Decide which insurance overage policies you need carefully. Consider your finances and the rest of your insurance policies. Choose the list of policies you will need with care. Once this is done, choose your vendor with care. Go to many different vendors and ask for quotes. Compare each of them and choose the vendor who offers all the services you need for low rates. It is also very important to ensure you do not choose a vendor who offers you and charges you for service you do not need.

Raise your deductibles on physical damage policies. This will help reduce the insurance rates and save money. When claiming the money, you might have to pay a slightly large amount but if you compare it to the savings you can make, you will end up saving more. Do not claim for any small scratch or dent. Any small damages to your car are best paid out of your own pocket as the insurance rates go higher with the number of claims. Try and maintain a good driving record. A good record indicates a good driver who is a much lower risk and will be charged lower premiums.

A good credit score will also help you get a discount. A carpool is another method to obtain a discount. People driving in carpools will get insurance discounts along with saving on fuel.