A minimum amount of auto insurance is required in every state in the U.S. Each state has different requirements, but if you do your homework you can still save a lot of money. This makes it very important for you to find out what the requirements are in your state. If you drive a car in Michigan you will need to know exactly what these requirements are in order to have the right coverage and still pay the least amount for your auto insurance.
Some of the minimum requirements in Michigan for example are $10,000 coverage for property damage, $20,000 for bodily injury to a person and at least $40,000 coverage for everyone that may be injured in an accident where you are at fault. Keep in mind that these minimums are subject to change so check with local insurance companies for updates.
Keep in mind that these are minimums and it may be a good idea to have more coverage than the minimums so that you minimize your financial risk. If your main goal is to get the lowest possible rates for your car insurance than here are some tips to help you do that.
First of all, if you just want the absolute lowest rates, then don't purchase more coverage than the minimums that Michigan requires. This will keep your costs low for sure. But remember that your financial risk may be higher in the event of an accident.
The reason is that if you are involved in a serious accident that creates a lot of damage, you may regret not having more coverage. The minimum coverage may not be enough to cover the cost of personal injury and property damage that is created.
Purchasing multi-line policies can also help you get cheaper car insurance from the company you use. By this I mean that if you get your car insured by the same company that you get other insurance from, like homeowner's, life insurance, etc., you may qualify for five percent or more discount for using the same company for all of your insurance needs.
Also, if you have more than one car insured by the same company they probably offer a multi-car discount that will reduce your insurance rates even more. If you have at least three cars to insure, you can probably save a substantial amount on your car insurance and make it possible for you to get more coverage for less.
Every insurance company will also base the rates you pay on your driving record. Traffic tickets and accidents will cause them to charge you more for insurance because you are considered a higher risk to them so they will want more money from you to help offset the risk.
A safe driving record is one of the very best ways to maintain low cost insurance rates. If you avoid accidents and traffic violations you are considered a much lower risk to insurance companies. This lower risk is reflected in lower insurance rates for you.
Finally, if you are shopping online for insurance (which is the best way to find the cheapest rates by the way), make sure the insurance company you get a quote from is approved for practicing business in the state of Michigan.
If you are looking for Michigan auto insurance, you can go to www.cheapmichigancarinsurance.com and put in your zip code, choose one of the companies listed, and fill out one of their forms. It's fast, free and easy, you might even save some money.