Michigan Auto Insurance Costs Driving Motorists off the Road, Experts Offer Advice


Car owners in Michigan lament that they are paying the highest auto insurance rate in the whole United States, but some specialists say there is little that they can do about it.  They cited weak consumer protection policies and oversights as the two major causes of the excessively high rates, leaving most consumers to the hands of auto insurance carriers. But some industry specialists say car owners can do many things to reduce their premium rate. They also expect the proposed reforms to help car owners in the state.

Michigan Auto Insurance Costs Driving Motorists off the Road, Experts Offer AdviceThis Monday, Nov. 30, several lawmakers are set to meet with consumer advocacy groups to discuss changes that are aimed to help Michigan motorists reduce on auto insurance costs. The proposals have not yet been released but some specialists expect sweeping reforms that would dramatically reduce the state’s premium rates which has surged over the last couple of years.

However, some industry specialists say consumers need not to wait for further reforms in order to cut back on auto insurance costs. They tell car owners that the best way to save on premium rates is by shopping around for as many quotes as possible. Before, it took policyholders days and even weeks just to gather multiple quotes but experts say they can do it now within a few minutes with the help of the Internet. Specialists note that there are several websites that provide consumers quotes from different companies for free.

Experts remind consumers that auto insurance providers have varying rate structures so they charge consumers differently based on several variables such as age, gender, marital status; model, year, and make of vehicle; and residence. This simply means two people driving the same car will not get the same rates if they enroll at the same company. Moreover, they will not get the same rates even if they share the same variables if they have different insurers.

Industry specialists say many auto insurance providers have pledged to freeze rates until March 2010 but only a few have lived up to their words. Nonetheless, they encourage car owners to be more hopeful since shopping around could really do wonders when it comes to saving on costs. Additionally, state regulators were able to list providers which did not increase rates so consumers will already know where to begin looking. Those providers are listed by Michigan regulators in the following link: http://www.michigan.gov/documents/dleg/EO_2009-1_Compliance_020609_266362_7.pdf.

Specialists urge consumers not to hesitate in using price comparison sites since they are the most effective and efficient internet tools in finding the best rates in Michigan.