How to Know You're Paying Too Much for Auto Insurance in Farmington

I can't think of anyone who looks forward to paying for auto insurance, in particular when the cost is way too high.

Online insurance companies like GEICO and Progressive promote their brand names with fancy advertisements and consumers find it hard to sift through the bull and do the work needed to find the best deal.

It's important to check auto insurance prices occasionally because insurance rates are constantly changing. Despite the fact that you may have had the best price a year ago you may be paying too much now. Ignore everything you know about auto insurance because you're about to find out one of the best ways to buy cheaper auto insurance.

Automobile Insurance Quotes in Farmington, MI

There are multiple methods to shop for auto insurance, but there is one way that is easier and takes less work. You could spend your day talking to insurance agencies in Farmington, or you can stay home and use the internet to get rate comparisons in just a few minutes.

All the larger companies participate in an industry program that enables customers to enter their coverage request one time, and each company then gives them pricing based on the submitted data. This eliminates the need for quote forms to each individual auto insurance company.

To submit your quote information now, click here (opens in new window).

The one downside to comparing rates this way is you are unable to specify which companies you want pricing from. If you would rather choose from a list of companies to compare rates, we put together a list of the cheapest auto insurance companies in Michigan. Click to view list.

Which method you use is up to you, but make absolute certain that you use exactly the same coverage information on every quote you get. If you enter unequal deductibles or liability limits you will not be able to determine which rate is truly the best in Farmington. Just a small difference in coverages can make a big difference in price. And when quoting auto insurance, remember that quoting more will improve the odds of getting the best offered rates.

What determines how much you pay?

It's important that you understand some of the elements that help determine the price you pay for auto insurance. Having a good understanding of what impacts premium levels allows you to make educated decisions that may reward you with much lower annual insurance costs.

The following are a few of the "ingredients" companies use to determine rates.

Men pay higher rates - Statistics show women are more cautious behind the wheel. However, this does not mean women are better drivers. Both sexes cause accidents in similar percentages, but the males have costlier accidents. They also get cited for more serious violations such as DWI and reckless driving. Youthful male drivers tend to get in the most accidents and thus pay the highest rates.
How many coverages with the same company - Many companies will give a discount to customers who buy several policies from them such as combining an auto and homeowners policy. This can amount to anywhere from five to ten percent in most cases. Even if you're getting this discount it's in your best interest to shop around to make sure you are getting the best deal.
Your auto insurance rates can be influenced by your job - Did you know that where you work can have an impact on rates? Jobs such as lawyers, architects and dentists tend to pay the highest average rates in part from high stress levels and long work days. Other jobs such as scientists, historians and performers have the lowest average rates.
Traffic violations increase rates - Just one moving violation can increase rates by as much as thirty percent. Good drivers tend to pay less for car insurance compared to drivers with tickets. Drivers who have flagrant citations like DWI, reckless driving or hit and run convictions may need to file a proof of financial responsibility form (SR-22) with their state DMV in order to keep their license.

Don't pay full price with these discounts

Insuring your vehicles can cost a lot, but there are discounts available to cut the cost considerably. Larger premium reductions will be automatically applied when you quote, but a few need to be specifically requested prior to getting the savings.

Accident Forgiveness - A handful of insurance companies will allow you to have one accident without raising rates as long as you don't have any claims for a set time period.
Anti-lock Brake Discount - Vehicles with anti-lock braking systems can reduce accidents and qualify for as much as a 10% discount.
Save over 55 - Older drivers may be able to get reduced rates.
Accident Free - Good drivers with no accidents can save substantially as compared to frequent claim filers.
Driver Safety - Successfully completing a course in driver safety can save you 5% or more depending on where you live.
Good Student - Getting good grades can earn a discount of 20% or more. This discount can apply well after school through age 25.

As a disclaimer on discounts, most credits do not apply to your bottom line cost. Most only cut the price of certain insurance coverages like liability, collision or medical payments. So when it seems like adding up those discounts means a free policy, auto insurance companies aren't that generous. Any amount of discount will reduce your premiums.

For a list of companies who offer auto insurance discounts in Farmington, follow this link.

Your personal situation dictates your coverage

When it comes to choosing the right insurance coverage for your vehicles, there really is not a one size fits all plan. Every insured's situation is different and a cookie cutter policy won't apply. Here are some questions about coverages that might point out whether or not you would benefit from professional advice.

Does my policy cover me when driving someone else's vehicle?
Do I need PIP (personal injury protection) coverage in Michigan?
Should I put collision coverage on all my vehicles?
Are there companies who specialize in insuring high-risk drivers?
Should I have combined single limit or split liability limits?
Do I need to file an SR-22 for a DUI in Michigan?
Does my policy cover my teen driver if they drive my company car?

If you don't know the answers to these questions, then you may want to think about talking to an agent. If you want to speak to an agent in your area, fill out this quick form or you can go here for a list of companies in your area.

Additional information can be found on the website for the Michigan Office of Financial and Insurance Regulation. Click here for link. Michigan consumers can learn about insurance regulations, read consumer alerts, read industry bulletins, and file complaints about a company.

Final considerations

Cheap auto insurance can be bought online and with local Farmington insurance agents, and you need to price shop both to have the best rate selection. Some companies do not offer online quoting and most of the time these regional insurance providers sell through independent agents.

While you're price shopping online, it's a bad idea to reduce needed coverages to save money. In many cases, an insured cut physical damage coverage only to regret at claim time they didn't purchase enough coverage. Your aim should be to purchase a proper amount of coverage for the lowest price.