If we talk about insurance, Michigan is not holding the top spot for being the most expensive city to insure a car – that place belongs to Louisiana. However, the recent changes made on Michigan’s auto insurance laws have catapulted the auto insurance price by allowing the insurance companies to increase the price coverage for injuries and property damages. This has brought Michigan into the limelight and landed on the second spot as the most expensive city transforming the lives of the economically traumatized people to become even more difficult.
The “no fault” insurance law may have contributed partly to Michigan’s problem. The same law exists in Florida, Kentucky, Minnesota, New York, Utah, Pennsylvania, North Dakota, New Jersey, Kentucky, Kansas, Hawaii and Colorado. The “no fault” law means that regardless of who instigated the accident, you or the other party, could still file a claim to your insurer up to the limits stated in your policy. In return, both parties will surrender their rights for recovery to the court, which usually ended up filing lawsuits after another.
The idea of the system is brilliant, which is primarily geared towards lessening the number of litigations that have to be made or using the courts to collect the “pain and suffering” that is already costing the insurers substantial amount.
The Law
Theoretically, the no-fault law should slump the cost of insurance premiums, but in reality, the effects are a complete opposite. Accordingly, those states that impose no-fault law is 25% higher than those who do not have this law in the first place. We have identified few possible reasons why this is happening. First, bad drivers are shielded from being sued and the companies themselves often faced of being persecuted because of arbitrary limit they observed.
However, it is still very possible to find cheap auto insurance in Michigan. You only need to know where to look and be ready for a bucketful of patience and persistence.
The Bigger the Better?
Buying insurance from large insurers such as Progressive, Geico, Nationwide, Farmers or State Farm does not necessarily mean that you will be getting the cheapest car insurance premiums. We have tested this technique for a couple times and our assumptions are correct.
The term insurance is usually coined as a “product” but in reality, it is more of a “service.” Service means that you cannot simply walk into your favorite convenience store and pick it up. This made us conclude that although Geico is the biggest underwriter and has the most insurance customers under its wings, this does not mean that it can extend – for all occasions – volume discounts across all states.
However, true to their promises, if you have life or home insurance with Geico or to any other insurance players, for that matter, adding auto insurance to your current policy will merit a discount as well.
Again, before purchasing any insurance, make sure you compare the rates not only between the big insurance companies but also to other insurance agents. These agents normally represent two or more companies and therefore, getting the best possible rates is not impossible.
