MichiganAutoRates.com » Saving Money

College Students Save On Auto Insurance

MIAutoRates — Wed, 20 Jan 2016 20:49:15 +0000

As you go through all your acceptance letters to the various colleges you got into, you can’t help but be so extremely proud of yourself. All the hard work through several years of school finally paid off. You think really long and hard about which one is the best fit for you. Then, it picks you. The college that is right for you basically jumps out and hits you in the face. As the summer after senior year comes to a close, you realize all the price tags that come with moving away. Tuition, that’s a hefty one. You send in your check for the first semester of college and you’re already in debt. The national average for the 2015-16 year is $15,610. Next comes everything you need in your dorm. This includes things like a bed spread, a laptop or desktop, blankets, towels, etc. That stuff isn’t all so cheap either. Debt on top of debt adds up in a few short years. Think of everything else you have to pay for; gas, books, food, insurance, phone bill, the list is quite long. I can help you out with saving on auto insurance while living on the college budget.
• Low Mileage and Pay As You Go Discount
Understand that PAYD plans usually require your mileage and driving to be monitored. That means allowing some sort of tracking device to be installed on your car or recording your mileage through systems, such as On-Star. Yes, someone is watching you drive, but that special someone is also giving you cheap car insurance.
• Classic Car Insurance
If your car is 25 or more years old and gets only occasional use, you may be able to get a less expensive “classic car” policy. Insurers can charge less because classics are generally driven less and cared for more. Ordinarily, to get a classic car policy, your vehicle must be garaged and not used as your primary mode of transportation. These policies can save up to 45 percent over insurance for daily drivers.
• Occasional Divers Discount
If the insurance policy is in your parents’ names and you are only driving the car when you come home for breaks, you should be listed on the policy as an “occasional” driver, which accesses your parents’ (probably) lower rate while protecting you. Do not reward your parents’ generosity by letting your friends drive your car.

New Year’s Resolution

MIAutoRates — Wed, 06 Jan 2016 21:15:13 +0000

What exactly is a New Year’s resolution? It is a tradition, typically found in the western hemisphere, in which a person makes a promise to an act of self-improvement to make the New Year better than the last. A few of the top resolutions that people typically make are to lose weight and be more healthy, quit smoking, and spend more time with family. The number one New Year’s resolution is to save money. I mean who wouldn’t want more money saved, and less spent? However, they don’t seem to last that long. Most of the self-improving acts only last about a month; it very, very rare that they exceed six months. Wonder why New Year’s resolutions seem to constantly fail year after year? The goals are unspecific, unrealistic, and based on willpower, not systems. Sadly, if you fail every year trying to improve yourself in a certain way, you can actually being to distrust yourself. Out of everybody in the whole world, you should be able to count of yourself. To help your New Year’s financial resolutions stick, try checking your auto insurance. You may not be getting the best deal possible, so if your goal is to save money then check this options provided. First, consider insurance before you buy. Things to be aware of are the price, repair costs, safety records, and whether it’s a target among thieves. Next, consider higher deductibles. Sure, you might have to pay a bit more out of pocket if you get into a crash, but you’ll save anywhere from 15%-40% in collision and comprehensive coverage costs. You should also maintain good credit, it affects how much your insurance costs. Another tip would be to reduce coverage on older cars. To keep the cost of auto insurance down, you may want your auto and homeowners insurance from the same company. Typically, the costs are less if you purchase from the same company. You may want to shop around for auto insurance, you might be surprised what company provides the lowest rate for you. Drive less, and drive safer; if you drive less, there is a smaller chance of an accident or emergency. As for being a safe driver, you stand to save in coverage costs. People who have clean driving records for a certain amount of time can qualify for safe driver discounts. Last but not least, opt for safety features. If your vehicle is equipped with safety equipment to reduce the risk of theft or injury, you can qualify for car insurance discounts. Sticking to your New Year’s resolution isn’t as hard as it seems. Weigh out all your options on saving money through auto insurance before coming to the final conclusion. Keep your eye on the prize of saving some money, and you should have no problem improving your life in 2016

How Credit Score Affects Car Insurance Rates?

MIAutoRates — Sun, 15 Feb 2015 19:26:09 +0000

Credit-based insurance scores, like credit scores, are numerical summaries of
consumers’ credit histories. Credit-based insurance scores typically are calculated using
information about past delinquencies or information on the public record (e.g.,
bankruptcies); debt ratios (i.e., how close a consumer is to his or her credit limit);
evidence of seeking new credit (e.g., inquiries and new accounts); the length and age of
credit history; and the use of certain types of credit (e.g., automobile loans). Insurance
companies do not use credit-based insurance scores to predict payment behavior, such as
whether premiums will be paid. Rather, they use scores as a factor when estimating the
number or total cost of insurance claims that prospective customers (or customers
renewing their policies) are likely to file.

Credit-based insurance scores evolved from traditional credit scores, and
insurance companies began to use insurance scores in the mid-1990s. Since that time,
their use has grown very rapidly. Today, all major automobile insurance companies use
credit-based insurance scores in some capacity. Insurers use these scores to assign
consumers to risk pools and to determine the premiums that they pay.

Insurance companies argue that credit-based insurance scores assist them in
evaluating insurance risk more accurately, thereby helping them charge individual
consumers premiums that conform more closely to the insurance risk they actually pose.
Others criticize credit-based insurance scores on the grounds that there is no persuasive
reason that a consumer’s credit history should help predict insurance risk. Moreover,
others contend that the use of these scores results in low-income consumers and members
of minority groups paying higher premiums than other consumers.

So what insurance companies correlate that if you are not financially responsible, they assume that you don’t drive responsibly either and raise the amount you pay for your policy.

Not all states allow for insurance companies to base your policy rate on your credit score but the state of Michigan does. If you don’t agree with this, contact your representative in Lansing.