How to Know You're Spending Too Much for Car Insurance in Stanwood

Overpriced car insurance can empty your bank account and make it impossible to make ends meet. Shopping your coverage around is a great way to tighten up your finances.

Because there are so many insurance companies to choose from, it's nearly impossible to locate the most affordable company.

How much can you save with discounts?

Car insurance companies don't always advertise every discount very well, so we took the time to find some of the more common as well as the least known discounts you could be receiving.

  • Payment Method - By paying your policy upfront instead of monthly or quarterly installments you may reduce your total bill.
  • Distant Student - Youth drivers who attend school more than 100 miles from home and do not have access to a covered vehicle can receive lower rates.
  • Multiple Policy Discount - If you have multiple policies with one company you could get a discount of approximately 10% to 15%.
  • Early Switch Discount - Some insurance companies reward drivers for switching to them prior to your current policy expiring. It's a savings of about 10%.
  • Good Student Discount - Performing well in school can be rewarded with saving of up to 25%. This discount can apply well after school through age 25.

Keep in mind that some of the credits will not apply to the overall cost of the policy. Some only apply to individual premiums such as liability and collision coverage. So despite the fact that it appears all those discounts means the company will pay you, it just doesn't work that way.

compare Stanwood car insurance rates

Good Decisions Result in Lower Rates

Smart consumers have a good feel for the factors that help determine your car insurance rates. When you know what positively or negatively influences your rates enables informed choices that will entitle you to big savings.

The following are a few of the "ingredients" car insurance companies consider when setting prices.

  • Special features that cut premiums - Purchasing a vehicle with an alarm system can help lower your rates. Theft prevention features such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping auto theft.
  • Older drivers pay less - Young drivers in Michigan are known to be careless and easily distracted when driving so car insurance rates are higher. Adding a youthful driver to your car insurance policy can be quite pricey. More mature drivers are more cautious drivers, file fewer claims and are safer drivers.
  • Where you live - Residing in less populated areas can save you money when it comes to car insurance. Urban drivers tend to have traffic congestion and much longer commute distances. Less people living in that area translates into fewer accidents.
  • What type of vehicle do you drive? - The performance of the vehicle you are buying insurance for makes a big difference in determining your rates. The lowest rates are usually for lower performance four cylinder passenger cars, but the cost you end up paying is determined by many additional factors.
  • How's your driving record? - Careful drivers have lower premiums compared to drivers with tickets. Even a single speeding ticket can boost insurance rates by as much as thirty percent. If you have flagrant violations like reckless driving, hit and run or driving under the influence may find they need to submit a SR-22 or proof of financial responsibility with their state motor vehicle department in order to keep their license.

How much car insurance do I need?

When it comes to buying the right insurance coverage for your personal vehicles, there really is no best way to insure your cars. Everyone's situation is a little different and your policy should reflect that. For example, these questions may help you determine if your insurance needs might need an agent's assistance.

  • What can I do if my company won't pay a claim?
  • Do I pay less if my vehicle is kept in my garage?
  • What are the best liability limits?
  • Does my car insurance cover rental cars?
  • Do I need to file an SR-22 for a DUI in Michigan?
  • Does my liability insurance cover pulling a trailer or camper?
  • Am I getting all the discounts available?
  • Is my cargo covered for damage or theft?

If you can't answer these questions but one or more may apply to you then you might want to talk to a licensed insurance agent. If you want to speak to an agent in your area, complete this form or you can also visit this page to select a carrier

Save 15 percent in 15 minutes? Is it for real?

Car insurance providers like State Farm, Allstate and GEICO continually stream television and radio advertisements. They all have a common claim that you can save after switching to their company. But how can every company make the same claim?

All the different companies have a preferred profile for the driver that earns them a profit. For example, a driver they prefer could be between the ages of 30 and 50, insures multiple vehicles, and drives less than 7,500 miles a year. A customer that hits that "sweet spot" will qualify for the lowest rates and is almost guaranteed to save a lot of money.

Potential customers who don't meet this ideal profile will be quoted a higher premium and this can result in business going elsewhere. The ad wording is "customers that switch" but not "drivers who get quotes" save that much. This is how insurance companies can advertise the way they do. This emphasizes why drivers should get as many comparisons as possible. Because you never know which insurance companies will provide you with the cheapest rates.

More sites with car insurance information

Additional detailed information can be found at the Michigan Office of Financial and Insurance Regulation website. Consumers can view a list of available companies, read enforcement actions against agents and companies, view agent and company licensing information, and learn about specific coverages.

Also read more on this page for car insurance prices in Michigan and this list of insurance agents in Stanwood, MI.

Stanwood car insurance comparison

The best insurance company isn't always the cheapest

When shopping online for car insurance, don't be tempted to skimp on coverage in order to save money. There have been many situations where drivers have reduced physical damage coverage only to discover later that a couple dollars of savings turned into a financial nightmare. The proper strategy is to get the best coverage possible at a price you can afford while still protecting your assets.

We just showed you a lot of techniques to reduce car insurance prices online. The most important thing to understand is the more providers you compare, the better likelihood of reducing your rate. You may even find the lowest rates come from some of the lesser-known companies. Regional companies can often insure niche markets at a lower cost compared to the large companies like .