Auto insurance. Michigan.

Auto insurance. Michigan.

Saving on auto insurance.

  1. Raise the deductibles. One way to save money is to take the highest deductibles on collision and comprehensive coverage that you can afford. A higher deductible means lower premiums.
  2. Choose a car that costs less to insure. Buying a "low-profile" car -- one that's rarely stolen and not too expensive to repair -- can help cut insurance costs. Research the cost of insurance before buying a car. Sports cars, for instance, are very expensive to insure while the least costly cars are small and midsized sedans and minivans.
  3. When away, cancel collision coverage. If you won't be driving for a long period of time -- more than 30 days, say -- you should notify your insurance company. Sometimes it's possible to cancel collision premiums for this period of time.
  4. Insure a teenage driver on your family policy rather than on a separate policy. This will usually save money. Explore discounts for teenagers who have a good academic record, have successfully passed a driver training course, or who don't smoke.
  5. If you have served in the military, you can sometimes get discounts on auto insurance through USAA. Visit for more information.
  6. Find out if your employer gets preferred rates through a group plan.
  7. Use your car for pleasure and other purposes, and commute to work on public transportation. This can save you money on your policy.
  8. If you are an older driver, investigate rates offered through organizations like the American Association of Retired Persons.
  9. If you have collision coverage on your auto, you don't need the collision-damage coverage when you rent a car. People who rent cars frequently may want to purchase a nonowner liability policy for about $300 a year, rather than pay for the expensive collision-damage coverage each time they rent a car.
Insurance companies offer many discounts:

  1. Good driving record. Generally, a clean record -- no accidents or moving violations for the past three years -- will result in lower premiums.
  2. Drivers over 55 who have taken a recent driving course.
  3. Carpool drivers. Drivers who carpool to work sometimes receive a 10-20 percent discount on premiums.
  4. Insuring more than one car on the same policy may earn you a 15-20 percent discount.
  5. Low annual mileage. Some companies offer discounts if you drive less than a certain number of miles each year.
  6. College students away at school. Some insurers offer discounts to parents with a college-age student who attends school more than 100 miles from home and doesn't keep a car on campus.
  7. Antitheft devices. Some insurers offer 5-15 percent discounts for alarm systems, wheel locks, hood locks, and ignition protection devices.
  8. Safety devices. You may receive up to a 30 percent discount in medical coverage for automatic seat belts and air bags. Some states like Florida, New Jersey, and New York require insurers to give discounts for cars equipped with antilock brakes.
  9. Being a nonsmoker. Smoking is considered a high-risk behavior. Nonsmoking drivers may receive discounts on liability, medical benefits, and collision.
  10. Long-time customers. Although it's wise to comparison shop, it doesn't always make sense to switch companies. Some insurers reward long-time customers with discounts and other money-saving programs.
  11. Insuring your vehicle with the same carrier you use for homeowner's insurance.

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