Michigan Car Insurance Rates Down in 2006 - Predicted Even Lower in ‘07

Of all of the fifty states, Michigan's car insurance laws are probably the most extreme. It has the strictest no-fault car insurance laws, and it is the only state that guarantees unlimited, lifetime medical benefits to motorists injured in auto accidents. On top of that, it is also one of the top-ten states for deer accidents, ranking in at #2, just behind Pennsylvania. With all of this in mind, you might be surprised to learn that car insurance rates in Michigan are on the decline, dropping two percent in 2006, and predicted to fall by even more in 2007. The questions Michigan drivers need to ask themselves are: 1) Why? and 2) How can I save? Read on. 

Two Questions, One Answer

Why are car insurance rates in Michigan on the decline and how can you save? Because Michigan consumers are shopping around.

Consider this: Car insurance companies in Michigan paid an average of $26,744 for each personal-injury-protection claim in 2006, compared to just $18,535 in 2001. The average collision claim went from $2,498 to $2,730 in the same period. So how did rates come down and why are they expected to come down even further? According to Pete Kuhnmuench, executive director of the Insurance Institute of Michigan, "Michigan consumers have a wide array of options when buying an auto insurance policy," and that's the reason rates have fallen. "Michigan consumers … should shop around," he continued.

How to Shop Around for the Best Car Insurance Rates

Shopping around for car insurance can save you big money - sometimes as much as $230 a month! And it isn't hard, either. Here is a simple, five-point check list of what you should do in order to properly begin your pursuit of savings:

1. Find your "declarations page" - this is the piece of paper explaining your current coverage. It's probably in the back of your filing cabinet or "junk drawer," but if you can't find it, call your insurance agent and ask him to send it to you.
    
2. Examine what kind of coverage you have. If you don't know what some of the terms mean, browse carinsurancerates.com. Our aim is to be your one-stop car insurance knowledge center. An informed, educated consumer is in the best position to experience massive savings.
    
3. Ask your current insurer to give you a discount. Many times this can work! Tell him or her that you've been learning about car insurance and you're about to shop around for the best rates. Say that you wanted to come to him/her first, out of courtesy.
    
4. Regardless of what your existing agent says, get a few quotes from other agents and companies. You can't be a "captive customer" - agents and companies don't typically give discounts and price-breaks to people they think will stay with them no matter what. You need to get out of that mind state and realize that smart consumers shop around for the best deals every six months.
    
5. Consider whether or not you need more coverage, or potentially, less. It never makes sense to be under-insured, but being over-insured is equally unintelligent. Above all, you have to realize that insurance is a financial product; something for your benefit. Don't look at it like another expense.