car insurance

Discover How Your Credit Rating Can Impact Your 🚘 Car Insurance Rates!

Discover How Your Credit Rating Can Impact Your Car Insurance Rates!

Posted on by Shield Insurance Agency

Shield Insurance Blog | Credit Rating | Start a Quote Today!

When it comes to car insurance, there are many factors that can influence the cost of your premiums. One factor that you may not be aware of is your credit score. Yes, that’s right, your credit score can actually have an impact on how much you pay for car insurance. In this blog post, we will explore the connection between credit rating and car insurance rates and discuss why it matters.

Car insurance premiums and credit rating

Car insurance companies use a variety of factors to determine the cost of your premiums. These factors can include your age, driving record, type of vehicle, and even your credit rating. While it may seem strange that your credit score would have any bearing on your car insurance costs, studies have shown that there is a correlation between creditworthiness and the likelihood of filing a claim.

Credit score’s role in determining car insurance costs

Your credit score is a numerical representation of your creditworthiness. It takes into account factors such as your payment history, outstanding debts, and length of credit history. Insurance companies believe that individuals with higher credit scores are more likely to be responsible and less likely to file a claim. As a result, they may offer lower premiums to those with higher credit scores.

Credit score impact on car insurance rates

The impact of your credit score on your car insurance rates can vary depending on the insurance company. Some companies may place more weight on credit scores than others. However, studies have shown that individuals with poor credit scores can pay up to 50% more for car insurance than those with excellent credit scores.

How credit rating affects car insurance costs

Insurance companies use statistical models to determine the risk associated with insuring an individual. These models take into account a variety of factors, including credit rating. The idea is that individuals with lower credit scores are more likely to file claims, leading to higher costs for the insurance company. As a result, they pass on these costs to the consumer in the form of higher premiums.

Impact of credit score on auto insurance premiums

The impact of your credit rating on your auto insurance premiums can be significant. In fact, some studies have shown that credit rating can have a bigger impact on your premiums than factors such as your driving record. This means that even if you have a clean driving record, you could still end up paying higher premiums if your credit rating is poor.

Influence of credit rating on car insurance

It’s important to note that not all states allow insurance companies to use credit ratings as a factor in determining premiums. However, in states where it is allowed, it can have a significant impact on your costs. This is why it’s important to be aware of your credit score and take steps to improve it if necessary.

The connection between credit rating and car insurance rates

The connection between credit rating and car insurance rates is clear. Insurance companies believe that individuals with higher credit scores are less likely to file claims, leading to lower costs for the company. As a result, they offer lower premiums to those with higher credit scores. On the other hand, individuals with lower credit scores are seen as higher risk and may be charged higher premiums as a result.

Shield Insurance Agency represents over 40 insurance companies

If you’re in the market for car insurance and want to find the best rates, it’s important to work with an agency that represents multiple insurance companies. Shield Insurance Agency represents over 40 insurance companies, giving you access to a wide range of options and ensuring that you get the best coverage at the best price.

Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

In conclusion, your credit score can indeed influence your car insurance premiums. Insurance companies believe that individuals with higher credit scores are less likely to file claims, leading to lower costs for the company. As a result, they offer lower premiums to those with higher credit scores. If you’re looking to save money on your car insurance, it’s important to be aware of your credit score and take steps to improve it if necessary. Working with an agency like Shield Insurance Agency, which represents multiple insurance companies, can also help you find the best rates.

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Get the Ultimate Peace of Mind with Physical Damage Coverage in Your Car Insurance!

Car Insurance: Get the Ultimate Peace of Mind with Physical Damage Coverage

Posted on by Shield Insurance Agency

Shield Insurance Agency Blog | Car Insurance | Start A Quote Today!

What is physical damage coverage on a car insurance policy?

Car insurance is a necessity for every driver on the road. It provides financial protection in case of accidents, theft, or damage to your vehicle. One important aspect of car insurance is physical damage coverage, which protects your vehicle from various types of damage. In this blog post, we will explore what physical damage coverage is, its types, and why it is essential to have it on your car insurance policy.

Physical damage coverage, also known as comprehensive and collision coverage, is an optional coverage that you can add to your auto insurance policy. It provides protection for your vehicle against physical damage caused by accidents, theft, vandalism, or natural disasters. While liability insurance covers damages to other people’s property or injuries, physical damage coverage focuses on your own vehicle.

There are two main types of physical damage coverage: comprehensive coverage and collision coverage. Comprehensive coverage protects your vehicle from non-collision incidents such as theft, fire, vandalism, falling objects, or natural disasters like floods or storms. On the other hand, collision coverage covers damages caused by collisions with other vehicles or objects, regardless of who is at fault.

Having physical damage protection on your car insurance policy offers several benefits. Firstly, it provides financial security by covering the cost of repairs or replacement of your vehicle in case of damage. Without physical damage coverage, you would have to bear these expenses out of pocket, which can be quite expensive.

Secondly, physical damage coverage gives you peace of mind knowing that your vehicle is protected against various risks. Whether it’s a minor fender bender or a major accident, having comprehensive and collision coverage ensures that you are financially protected.

Moreover, physical damage coverage also extends to other valuable items in your vehicle. For example, if your car is broken into and your laptop or other personal belongings are stolen, comprehensive coverage will help reimburse you for the loss.

Understanding the details of your car insurance coverage is crucial to make informed decisions. When it comes to physical damage coverage, it’s essential to know the coverage limits, deductibles, and exclusions. Coverage limits refer to the maximum amount your insurance company will pay for damages. Deductibles are the amount you have to pay out of pocket before your insurance coverage kicks in. Exclusions are specific situations or circumstances that are not covered by your policy.

Car insurance coverage options can vary from one insurance company to another. It’s important to review your policy and discuss your coverage needs with your insurance agent. They can help you understand the different coverage options available and tailor a policy that suits your specific requirements.

Shield Insurance Agency represents over 40 insurance companies and can assist you in finding the right car insurance coverage. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK, and an agent will be in touch soon.

In conclusion, physical damage coverage is an essential component of a car insurance policy. It provides protection for your vehicle against various types of damage, including accidents, theft, vandalism, and natural disasters. Having comprehensive collision coverage offers financial security and peace of mind. Understanding the details of your coverage and working with a reputable insurance agency like Shield Insurance Agency can help you find the right car insurance policy that meets your needs. Don’t wait until it’s too late – make sure you have the necessary physical damage coverage to protect your vehicle.

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Discover the surprising truth about canceling auto insurance anytime!

Discover the surprising truth about canceling auto insurance anytime!

Posted on by Shield Insurance Agency

Shield Insurance Blog | Auto Insurance | Start A Quote Today!

Auto insurance is a necessary expense for every car owner. It provides financial protection in case of accidents, theft, or damage to your vehicle. However, there may come a time when you need to cancel your auto insurance policy. Whether you’re switching providers, selling your car, or simply no longer need coverage, it’s important to understand the process and guidelines for canceling your car insurance anytime.

Canceling your auto insurance policy may seem like a daunting task, but it doesn’t have to be. In this blog post, we will discuss the auto insurance cancellation policy, the process, and the options available to you. So, let’s dive in!

First and foremost, it’s crucial to review your auto insurance cancellation terms. Each insurance company has its own guidelines and policies when it comes to canceling coverage. Some companies may allow you to cancel at any time, while others may require you to wait until your policy term is up. It’s important to read your policy documents or contact your insurance provider to understand the specific terms and conditions.

If you’re considering canceling your auto insurance policy anytime, there are a few options available to you. The most common options include:

1. Switching Providers: If you’re unhappy with your current insurance provider or have found a better deal elsewhere, you can cancel your policy and switch to a new provider. It’s important to compare quotes from multiple insurance companies to ensure you’re getting the best coverage at the best price. Shield Insurance Agency represents over 40 insurance companies, making it a great resource for finding the right policy for your needs.

2. Selling Your Car: If you’re selling your car, you may be wondering if you can cancel your auto insurance policy anytime. The answer is yes, but it’s important to notify your insurance provider as soon as possible. They will guide you through the cancellation process and may even be able to provide coverage for your new vehicle if needed.

3. No Longer Needing Coverage: If you no longer own a car or have decided to stop driving altogether, you may want to cancel your auto insurance policy. Again, it’s important to contact your insurance provider to discuss your options. They may be able to provide guidance on how to cancel your policy and any potential penalties or fees associated with early cancellation.

Now that you understand the options available to you, let’s discuss the auto insurance cancellation process. The process may vary depending on your insurance provider, but generally, it involves the following steps:

1. Contact Your Insurance Provider: The first step is to contact your insurance provider and inform them of your intention to cancel your policy. This can usually be done over the phone or through an online portal. Be prepared to provide your policy number and any other relevant information.

2. Provide Reason for Cancellation: Your insurance provider may ask for a reason for canceling your policy. This is simply for their records and to understand any feedback you may have. It’s important to be honest and provide accurate information.

3. Pay Any Outstanding Premiums: If you have any outstanding premiums, you will need to pay them before your policy can be canceled. Your insurance provider will provide you with the necessary information and payment options.

4. Receive Confirmation: Once your policy is canceled, you should receive a confirmation from your insurance provider. This confirmation should include the effective date of cancellation and any refunds or credits due to you.

It’s important to note that canceling your auto insurance policy anytime may have financial implications. Depending on your insurance provider and the terms of your policy, you may be subject to cancellation fees or penalties. It’s important to review your policy documents or contact your insurance provider to understand any potential costs associated with canceling your coverage.

In conclusion, canceling your auto insurance policy anytime is possible, but it’s important to understand the process and guidelines. Review your auto insurance cancellation terms, explore your options, and contact your insurance provider to discuss your intentions. Shield Insurance Agency represents over 40 insurance companies and can help you find the right policy for your needs. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon. Remember, it’s always better to be informed and prepared when it comes to your auto insurance coverage.

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Discover the surprising truth about auto insurance coverage for other drivers!

Discover the surprising truth about auto insurance coverage for other drivers!

Posted on by Shield Insurance Agency

Shield Insurance Blog | Auto Insurance | Start A Quote

Auto insurance is a crucial aspect of responsible vehicle ownership. However, many drivers are unsure about the extent of coverage when someone else is behind the wheel of their car. Whether it’s a friend, family member, or even an unauthorized driver, understanding the insurance implications is essential. In this blog post, we will explore the various scenarios and shed light on coverage for other drivers, borrowed cars, non-owner drivers, rental cars, occasional drivers, and more. Read on to find out what your auto insurance policy covers and how to ensure you have the right protection.

Coverage for Other Drivers

When it comes to coverage for other drivers, it’s important to understand the terms and conditions of your auto insurance policy. In most cases, your policy will extend coverage to other drivers who have your permission to use your vehicle. This is known as permissive use. However, it’s crucial to note that coverage may vary depending on the insurance company and the specific policy you have.

Auto Insurance for Borrowed Cars

If you lend your car to a friend or family member, your auto insurance policy typically extends coverage to them. However, it’s important to remember that your policy’s limits and deductibles still apply. If the borrower gets into an accident and the damages exceed your policy limits, you may be held financially responsible for the remaining costs. Therefore, it’s crucial to ensure that your policy provides adequate coverage for borrowed cars.

Insurance for Non-Owner Drivers

Non-owner drivers, such as those who frequently rent cars or borrow vehicles, may require additional insurance coverage. While the car owner’s insurance policy may provide some coverage, it may not be sufficient. In such cases, non-owner car insurance can be a valuable investment. This type of insurance provides liability coverage when driving a vehicle that is not owned by the driver. It offers protection against bodily injury and property damage liability claims.

Coverage for Friends Driving My Car

When a friend drives your car with your permission, your auto insurance policy generally extends coverage to them. However, it’s important to note that if your friend is involved in an accident and found to be at fault, it may impact your insurance rates. Additionally, if your friend is a frequent driver of your vehicle, it’s advisable to add them as a secondary driver on your policy to ensure adequate coverage.

Auto Insurance for Family Members Driving My Car

In most cases, auto insurance policies extend coverage to family members who live in the same household. This means that if your spouse, children, or other family members drive your car with your permission, they are typically covered under your policy. However, it’s crucial to review your policy and ensure that it explicitly includes coverage for family members. If not, you may need to add them as named drivers to your policy.

Coverage for Unauthorized Drivers

Insurance coverage for unauthorized drivers can be a complex issue. If someone without your permission drives your car and gets into an accident, your insurance policy may not cover the damages. In such cases, the unauthorized driver may be held personally responsible for any resulting costs. It’s important to emphasize the importance of never lending your vehicle to someone without proper authorization to avoid potential legal and financial consequences.

Auto Insurance for Rental Cars

When renting a car, it’s essential to understand the insurance coverage provided by the rental company. Most rental companies offer collision damage waivers (CDW) or loss damage waivers (LDW) that cover damages to the rental vehicle. However, these waivers may not cover liability for injuries or damages to other vehicles. To ensure comprehensive coverage, it’s advisable to check with your auto insurance provider to see if your policy extends coverage to rental cars. If not, you may need to purchase additional coverage from the rental company.

Coverage for Occasional Drivers

If you have occasional drivers who use your vehicle, it’s important to inform your insurance company. While some policies automatically cover occasional drivers, others may require you to add them as named drivers. By notifying your insurance provider, you can ensure that your policy accurately reflects the drivers who have access to your vehicle. This will help avoid any potential coverage gaps or disputes in the event of an accident.

Understanding the coverage provided by your auto insurance policy when someone else is driving your car is crucial. Whether it’s coverage for other drivers, borrowed cars, non-owner drivers, rental cars, occasional drivers, or family members, being informed about your policy’s terms and conditions is essential. Remember to review your policy, consider additional coverage if necessary, and always seek clarification from your insurance provider. By doing so, you can ensure that you have the right protection in place and avoid any unexpected financial burdens. For personalized assistance and a free quote, contact Shield Insurance Agency at (616) 896-4600 or visit this LINK, and an agent will be in touch soon.

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auto insurance property damage

Unveiling the hidden secrets of auto insurance: Does it really cover bodily injury and property damage?

Posted on by Shield Insurance Agency

Shield Insurance Blog | Auto Insurance | Start A Quote Today! | Email the office

Car insurance is a crucial aspect of owning a vehicle. It provides financial protection in case of accidents, damages, or injuries. However, understanding the extent of coverage can be confusing. In this blog post, we will delve into car insurance coverage details, specifically focusing on bodily injury and property damage. We will also explore the benefits of car insurance and provide information on how to obtain a free quote through Shield Insurance Agency.

Car Insurance Coverage:

Car insurance coverage typically consists of several components, including bodily injury coverage and property damage coverage. Bodily injury coverage protects you if you cause an accident that results in injuries to others. It covers medical expenses, lost wages, and legal fees if you are sued. Property damage coverage, on the other hand, covers the cost of repairing or replacing someone else’s property that you damaged in an accident.

Auto Insurance Coverage:

Auto insurance coverage varies depending on the policy you choose. It is essential to review your policy documents carefully to understand the specific coverage you have. Most states require a minimum level of coverage, but it is often recommended to opt for higher coverage limits to ensure adequate protection.

Coverage for Bodily Injury and Property Damage:

Car insurance policies typically include both bodily injury and property damage coverage. The coverage limits determine the maximum amount your insurance company will pay for each category. For example, if your policy has a bodily injury coverage limit of $100,000 per person and $300,000 per accident, the insurance company will cover up to $100,000 for each injured person and up to $300,000 for all injured parties in a single accident.

Auto Insurance Benefits:

Having car insurance offers numerous benefits. Firstly, it provides financial protection in case of accidents, reducing the burden of paying for medical bills, property repairs, or legal fees out of pocket. Secondly, car insurance can provide peace of mind, knowing that you are protected against unforeseen circumstances. Additionally, some policies offer additional benefits such as roadside assistance, rental car coverage, and reimbursement for towing expenses.

Auto Insurance Coverage Details:

When reviewing your car insurance policy, it is crucial to understand the details of your coverage. Familiarize yourself with the terms and conditions, including any exclusions or limitations. For example, some policies may not cover damages caused by natural disasters or intentional acts. It is also essential to know the process for filing a claim and the timeframe within which you must report an accident.

Shield Insurance Agency:

Shield Insurance Agency is a reputable insurance provider that represents over 40 insurance companies. They offer a wide range of car insurance options to suit individual needs. Whether you are a new driver or have an extensive driving history, Shield Insurance Agency can help you find the right coverage at competitive rates.

Contact Shield Insurance Agency:

To obtain a free quote for car insurance, you can contact Shield Insurance Agency at (616) 896-4600. Their experienced agents will guide you through the quoting process, ensuring you receive a personalized quote tailored to your requirements. Alternatively, you can start the quoting process by visiting the following LINK, and an agent will be in touch with you soon.

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The Surprising Way Household Rating Impacts Your Car Insurance Costs

The Surprising Way Household Rating Impacts Your Car Insurance Costs

Posted on by Shield Insurance Agency

Shield Insurance Blog | Household Rating | Start A Quote Today!

When it comes to car insurance, there are many factors that can impact your premiums. From your driving record to the type of car you drive, insurance companies take a variety of factors into consideration when determining your rates. However, one factor that you may not be aware of is your household rating.

What is Household Rating?

Household rating is a term used by insurance companies to determine the risk associated with insuring a particular household. It takes into account the number of drivers in the household, their ages, and their driving records. Insurance companies use this information to assess the likelihood of accidents or claims occurring within the household.

How Does Household Rating Impact Your Car Insurance Costs?

The impact of household rating on your car insurance premiums can be significant. Insurance companies consider households with multiple drivers, especially young or inexperienced drivers, to be at a higher risk of accidents. As a result, they may charge higher premiums to cover this increased risk.

For example, if you have a teenage driver in your household, your car insurance rates are likely to be higher than if you were the only driver. This is because statistics show that teenage drivers are more likely to be involved in accidents. Insurance companies take this into account when determining your rates.

Similarly, if you have multiple drivers with poor driving records in your household, your car insurance premiums may also be higher. Insurance companies view drivers with a history of accidents or traffic violations as a higher risk and therefore charge higher premiums to cover this risk.

On the other hand, if you have a clean driving record and no other drivers in your household, you may be eligible for lower car insurance rates. Insurance companies consider individuals with a good driving record to be less likely to be involved in accidents and therefore charge lower premiums.

How Can You Minimize the Impact of Household Rating on Your Car Insurance Pricing?

While you may not be able to change the number of drivers in your household or their ages, there are steps you can take to minimize the impact of household rating on your car insurance costs.

1. Encourage safe driving: By promoting safe driving habits within your household, you can reduce the likelihood of accidents or claims. This can help lower your car insurance premiums over time.

2. Take advantage of discounts: Many insurance companies offer discounts for safe driving, completing driver’s education courses, or having multiple policies with the same company. Be sure to ask your insurance agent about any available discounts that you may qualify for.

3. Shop around for the best rates: Not all insurance companies weigh household rating the same way. Some may offer more competitive rates for households with multiple drivers or young drivers. By shopping around and comparing quotes from different insurance companies, you can find the best rates for your specific household rating.

4. Consider a different insurance company: If you find that your current insurance company is charging high premiums based on your household rating, it may be worth considering switching to a different company. Shield Insurance Agency, for example, represents over 40 insurance companies and can help you find the best rates for your specific household rating. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

In conclusion, household rating is an important factor that can impact your car insurance costs. Insurance companies consider the number of drivers in your household, their ages, and their driving records when determining your rates. By promoting safe driving, taking advantage of discounts, shopping around for the best rates, and considering a different insurance company, you can minimize the impact of household rating on your car insurance pricing. Remember, Shield Insurance Agency represents over 40 insurance companies and can help you find the best rates for your specific household rating.

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Personal Auto Insurance & Shield Agency

Secure a hassle-free Auto Insurance Quote From Shield Agency

Posted on by Shield Insurance Agency

Shield Insurance Blog | Auto Insurance | Start A Quote Today

Personal Auto Insurance

Car insurance is a type of insurance that provides financial protection in the event of an accident or damage to your vehicle. It is a legal requirement in most states to have car insurance if you own a vehicle. Automobile insurance policies vary depending on the coverage you choose and the insurance company you select. In this blog post, we will explore the basics of personal auto insurance and answer some common questions.

Click here to choose your own auto policy with your specific carrier, and we will contact you with the details.
Click here to choose your own policy with your specific carrier, and we will contact you with the details.

What is car insurance?

Auto insurance is a contract between you and an insurance company that protects you financially in the event of an accident or damage to your vehicle. It provides coverage for liability, which means it pays for the damages you cause to others. It also provides coverage for your own vehicle, depending on the type of coverage you choose.

Do I need car insurance?

Yes, car insurance is mandatory in most states. It is required by law to have at least liability coverage, which pays for the damages you cause to others. Driving without car insurance can result in fines, license suspension, and even legal consequences. It is important to have car insurance to protect yourself and others on the road.

What does auto insurance cover?

Auto insurance covers a range of situations and damages. The main types of coverage include:

  • Liability: This coverage pays for the damages you cause to others in an accident. It includes bodily injury liability, which covers medical expenses and lost wages, and property damage liability, which covers the cost of repairing or replacing someone else’s property.
  • Comprehensive: This coverage pays for damages to your vehicle that are not caused by a collision. It includes theft, vandalism, fire, and natural disasters.
  • Collision: This coverage pays for damages to your vehicle caused by a collision with another vehicle or object.
  • Medical Payments/Personal Injury Protection (PIP): This coverage pays for medical expenses and lost wages for you and your passengers in the event of an accident, regardless of who is at fault.
  • Other optional coverages: There are additional coverages you can add to your policy, such as uninsured/underinsured motorist coverage, which protects you if you are involved in an accident with someone who does not have insurance or has insufficient coverage.

What does car insurance not cover?

Auto insurance does not cover regular maintenance and wear and tear on your vehicle. It also does not cover intentional damage or illegal activities. It is important to read your policy carefully to understand what is covered and what is not.

How is auto insurance priced?

Car insurance premiums are determined by several factors, including:

  • Your driving record: If you have a history of accidents or traffic violations, you may pay higher premiums.
  • Your age and gender: Younger drivers and male drivers tend to have higher premiums.
  • Your location: Insurance rates can vary depending on where you live. Areas with higher crime rates or higher accident rates may have higher premiums.
  • Your vehicle: The make, model, and age of your vehicle can affect your insurance rates. Newer and more expensive vehicles may have higher premiums.
  • Your coverage limits: The amount of coverage you choose will affect your premiums. Higher coverage limits will result in higher premiums.

What is a car insurance premium?

A car insurance premium is the amount you pay for your insurance coverage. It is typically paid on a monthly or annual basis. The premium is based on the risk factors associated with insuring you and your vehicle. Insurance companies use complex algorithms and statistical data to calculate premiums.

Does auto insurance cover maintenance?

No, car insurance does not cover regular maintenance and wear and tear on your vehicle. It is your responsibility to maintain your vehicle and keep it in good working condition. Car insurance is designed to protect you financially in the event of an accident or damage to your vehicle, not for routine maintenance.

How to get car insurance

It is important to shop around and compare quotes from different insurance companies to find the best coverage and rates for your needs. Shield Insurance Agency represents over 40 insurance companies and can provide you with a free quote. You can contact them at (616) 896-4600 or start the quoting process by visiting their website.

In conclusion, personal auto insurance is a necessary protection for you and your family. It provides coverage for liability, damages to your vehicle, and medical expenses. It is important to understand the different types of coverage and choose the right policy for your needs. Remember to shop around and compare quotes to find the best coverage and rates. Contact Shield Insurance Agency for a free quote today and ensure the protection of your family on the road.

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Michigan Supreme Court to hear car insurance case – will it lead to higher rates?

Michigan Supreme Court to hear car insurance case

Posted on by Shield Insurance Agency

Michigan Supreme Court to hear car insurance case – will it lead to higher rates?

WXYZ.com | By: Kiara Hay | Posted at 6:25 AM, Sep 30, 2022 | car insurance

The fight over no-fault car insurance in Michigan could lead to higher premiums for all drivers next year.

It’s part of the fallout surrounding the 2019 reform law that is now heading to the State Supreme Court.

Every driver who received a $400 auto insurance refund check last year will likely slowly pay it back with claims that insurance rates will go up starting in July.

The Michigan Supreme Court will rule on whether or not people catastrophically injured before 2019 will continue to get their medical expenses covered indefinitely.

So, how did we get here?

In 2019, Gov. Gretchen Whitmer rolled out a no-fault reform law. It set a fee schedule and cap on reimbursements not covered by Medicaid, impacting people who have been severely injured in a crash.

In August 2022, the Michigan Court of Appeals ruled it unconstitutional to cut payments off to people injured before 2019.

The state Supreme Court will now hear oral arguments in March 2023.

The decision is hitting everyone in their pockets with the Michigan Catastrophic Claims Association saying it will increase rates in July.

It could go up $48 a year for people who select no personal injury protection, or limited protection, and a 42% increase for drivers who want unlimited personal injury protection, going from $86 per year to $122.

Click here for the full story…

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Tips to cut Car Insurance Costs

Posted on by Shield Insurance Agency

15 Tips and Ideas for Cutting Car Insurance Costs

By GLENN CURTIS  Updated Apr 16, 2021

Car insurance is necessary to protect you financially when behind the wheel. Whether you just have basic liability insurance or you have full auto coverage, it’s important to ensure that you’re getting the best deal possible. Wondering how to lower car insurance?

Here are 15 strategies for saving on car insurance costs.

KEY TAKEAWAYS

One of the ways to lower car insurance is through a discount bulk rate for insuring several vehicles and drivers at once.

Lower car insurance rates may also be available if you have other insurance policies with the same company.

Maintaining a safe driving record is key to getting lower car insurance rates.

How Much Does Car Insurance Cost?

Car insurance costs are different for every driver, depending on the state they live in, their choice of insurance company, and the type of coverage they have. But when trying to save money on car insurance, it helps to know what the typical driver pays.

On average, the typical person spent $1,190 on car insurance in 2018, based on the latest figures available from the National Association of Insurance Commissioners (NAIC)1. According to the NAIC data, car insurance premiums rose 30% between 2014 and 2018, despite the number of insured vehicles only rising by 7%1.

Data from AAA put the average cost of car insurance for new vehicles in 2020 slightly higher, at $1,202 annually2. The numbers are fairly close together, suggesting that as you budget for a new car purchase you may need to include $100 or so per month for auto insurance.

NOTE

While some things that affect car insurance rates–such as your driving history–are within your control others, costs may also be affected by things like state regulations and state accident rates

.

How to Save on Car Insurance Costs

There are a number of strategies you may use to save on car insurance. Once you know how much is car insurance for you, you can put some or all of these tactics to work.

1. Take Advantage of Multi-Car Discounts

If you obtain a quote from an auto insurance company to insure a single vehicle, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers or vehicles with that company. Insurance companies will offer what amounts to a bulk rate because they want your business. Under some circumstances, they are willing to give you a deal if it means you’ll bring in more of it.

Ask your insurance agent to see if you qualify. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two unrelated people may also be able to obtain a discount; however, they usually must jointly own the vehicle.

If one of your drivers is a teen, you can expect to pay more to insure them. However, if your child’s grades are a B average or above or if they rank in the top 20% of the class, you may be able to get a good student discount on the coverage, which generally lasts until your child turns 25. These discounts can range from as little as 1% to as much as 39%, so be sure to show proof to your insurance agent that your teen is a good student.

Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm, such as homeowners insurance. Allstate, for example, offers a 10% car insurance discount and a 25% homeowners insurance discount when you bundle them together, so check to see if such discounts are available and applicable.3

2. Pay Attention on the Road

In other words, be a safe driver. This should go without saying, but in today’s age of increasing in-car distractions, this bears mentioning as much as possible. The more mindful you are, the more accidents or moving violations you’ll be able to avoid—events that raise your insurance rates. Travelers offers safe driver discounts of between 10% and 23%, depending on your driving record.4

For those unaware, points are typically assessed to a driver for moving violations, and more points can lead to higher insurance premiums (all else being equal).

3. Take a Defensive Driving Course

Sometimes insurance companies will provide a discount for those who complete an approved defensive driving course. Drivers may also be able to reduce the number of points they have on their licenses by taking a defensive driving, accident prevention, or other course.

Make sure to ask your agent/insurance company about this discount before you sign up for a class. After all, it’s important that the effort being expended and the cost of the course translates into a big enough insurance savings. It’s also important that the driver sign up for an accredited course. Every state has its own rules about accredited defensive driving courses.

4. Shop Around for Better Car Insurance Rates

If your policy is about to renew and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies. Also, every year or two it probably makes sense to obtain quotes from other companies, just in case there is a lower rate out there.

Remember, cheap doesn’t always mean good, and going with the lower-priced company isn’t always the wisest decision. That’s because the insurer’s creditworthiness should also be considered. After all, what good is a policy if the company doesn’t have the wherewithal to pay an insurance claim?

To run a check on a particular insurer, consider checking out a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but what your contract covers is also important, so make sure you understand it. Insure.com’s site bases its insurance company ratings on data assembled by Standard and Poor’s.6

In general, the fewer miles you drive your car per year, the lower your insurance rate is likely to be, so always ask about a company’s mileage thresholds.

5. Use Mass Transit

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