Insuring a vehicle in Detroit is not going to be cheap. In fact, Detroit is the most expensive city in the United States in this category; it is higher than Philadelphia, Newark and Los Angeles. As of 2008, the average annual auto premium for a vehicle insured in Detroit was $4759. This is over $1000 more than second place Philadelphia. There are numerous reasons why insurance is higher in Detroit than other places but, for the astute care insurance shopper, lower car insurance prices can be located.
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Car Insurance Rates -
Arenít all car insurance rates the same? In Detroit they are not all equal. There are two reasons why the rates are different. Michigan is one of the few states that allow insurance companies to charge different rates based on credit scores, job status, or education. Further, they are permitted to use criteria other than a driving record to set their premiums.
To illustrate how much auto insurance in Detroit, Michigan fluctuates, here is an example. Standard auto insurance premiums in Kalamazoo, Michigan are about $1821. However, with Allstate, if the same driver lives in Detroit, the rate is 241% higher. For other companies it is even worse; AAA of Michigan is 251% higher and State Farm is 365% more.
The high price of automobile insurance has forced many drivers to not purchase coverage. It is estimated that 20% of the drivers in Michigan have not bought insurance.
Not carrying automobile insurance is a foolish, irresponsible decision that could have lifelong devastating effects. One accident could cause financial ruin for a lifetime. It is just not worth the risk.
Tips to Find Cheaper Insurance -
In order to find the lowest premium, all applicable discounts must be used. This will require comparing all of the discounts that the insurance companies offer and inquiring if they apply to you. Some of the discounts that may be offered are for drivers who do not drink, those who have a good credit history, and those who are good students. These discounts can substantially lower the insurance rates.
Tax Benefits -
There are some Federal tax benefits associated with carrying auto insurance but the vehicle must be used for more than just personal driving. The premiums can be deducted if the car is used for your job or for your business.
Comparing Companies -
Determining individual insurance rates is difficult because the policies are so dependent on the individual. However, there are four categories that can be applied to insurance companies when they are compared; service, rates, coverage, and strength of the company.
State Farm -
Rates: They are one of the highest in the Detroit area as proved in the Kalamazoo example. Attempt to get all of the discounts that are available and try to negotiate a lower rate.
Service: They have above average in service especially if you buy insurance through a local agent.
Coverage: As a large company, they offer more in terms of coverage than the smaller insurance companies.
Strength of Company: State Farm is a very solid company with an excellent financial base.
AAA of Michigan -
Rates: Generally their rates are lower than State Farm and Allstate. They may not offer as many discounts as the larger companies.
Service: On the same level as State Farm.
Coverage: Equal to most other insurance companies.
Strength of Company: Adequate.
Rates: They claim their rates are competitive with any other company. Their rates can easily be checked online.
Service: They do not have local agents which is a deterrent to good service but they do have a 24/7 call in number which may even that out.
Coverage: Their coverage is as good as other companies.
Strength of Company: Established in 1937, Progressiveís strength is not an issue.
With online insurance quotes available by every insurance company, be diligent about rates, coverage, and service and the best price will be found.