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Michigan Insurance Limits
This is my site Written by jdlash on October 13, 2009 – 09:57 pm10

 

How much Michigan auto insurance do I need?

 

Michigan auto insurance is very complex and you definitely need to understand what your getting. Having Michigan auto insurance can also be expensive, so you need to know what coverage you need and where you can save money.

 

Here are a few ways to save money, without the risk of costing thousands down the road:

 

The first way is to increase comprehensive and collision deductibles. What do you feel comfortable self insuring? This is a big question and the easiest way to determine this is to pretend like you have to pay the deductible today. If you can afford to pay $500 out of pocket today, then that might not be a bad decision to raise the deductibles. The biggest deciding factor is to see what the savings would be. If you can save $300-$500 per year by increasing the deductibles to $500 and you can afford to pay that much out of pocket, then your probably going to be money ahead by making the change.

 

The next way to save on Michigan auto insurance is to decline rental reimbursement coverage. Once again, you need to determine if you need it or not. If you have 3 vehicles and two drivers, then why do you need to have car rental reimbursement on your vehicles? This usually runs around $20 per vehicle. $20 multiplied by 3 vehicles is $60 every 6 months. That comes to $120 in savings per year just for car rental coverage. The biggest thing is whether or not you need it. If you don’t have another form of transportation if your vehicle were in the shop, then you would have to rent the car out of pocket and wouldn’t save any money in the long run.

 

The last way to save is more of a long run savings. Not carrying the correct coverage, or deductibles you can’t afford will just cost you in the long run. Make sure you are able to cover the comprehensive and collision deductibles when it comes claims time. It’s almost guaranteed that you will eventually need to file a claim and there is nothing worse then not being happy with the coverages you chose when you started the policy. The goal is to save money. Choosing bad coverage limits only saves you now and will cost hundreds in the long run.

 

 

Michigan auto insurance has so much more to it. Just remember that this article is simply covering how much insurance you need. It provides detail as far as optional Michigan coverages are concerned. To learn more about Liability limits and other coverages visit Understanding you Michigan Auto Insurance coverage and learn more.

 

Other helpful articles:

 

5 tips to save on Michigan Car Insurance, Understanding Michigan Car Insurance, Filing A Michigan Mini-Tort Claim

 

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