Under-insured or Not Insured? Finding the Right Insurance for You
December 20, 2018
Insurance coverage is a necessity for all Michigan vehicle owners. But deciding which policy is right for you can be an overwhelming process.
Do I need collision coverage?
How high should my deductible be?
Where can I find a good insurance policy at an affordable rate?
Here are some helpful tips to help you find the best auto insurance coverage for you and your family.
If you are looking for new insurance, ask for referrals. Family members, friends and co-workers are good sources. Ask them which insurance company they use and what their experience has been.
Some insurance agents work for individual companies while others represent several. Those who work for more than one company will be able to provide you with more options.
Remember that anyone selling insurance in Michigan must be licensed through the Michigan Department of Insurance and Financial Services (DIFS).
Ways to Reduce Your Premium
Insurance companies use a variety of factors to determine premiums. These include the age, make and model of your vehicle(s), the ages of the drivers in your household as well as their driving records, your geographic location and how many miles you drive.
Most insurance companies offer varying deductible amounts. The higher the deductible, the lower the premium will be. The most common types are physical damage deductibles and PIP deductibles.
Coordination With Other Health Insurance or Disability Coverage
A lower premium may be available by coordinating PIP coverage with a health insurance or disability policy (except Medicaid, Medicare or a Medicare supplemental policy). The health or disability plan becomes the primary payer for PIP benefits, while the automobile policy covers the remaining medical or wage loss expenses.
Work Loss Waiver for Senior Citizens and Retirees
Michigan no-fault law requires insurance companies to offer senior citizens (65 or older) who drive less than 3,000 miles per year a reduced premium. Retired persons 60 years or older must also be offered the option to waive the PIP coverage for lost wages.
Ask your insurance company representative about discounts for accident-free driving records, credit score, air bags, anti-theft devices and anti-lock brakes.
Extras That Raise Your Premium
These extra coverage options, which are not required under Michigan no-fault law, will usually increase your premium. However, the additional coverage may be worth the cost depending on your driving habits and household situation.
Collision and Comprehensive Coverage
- Collision covers repairs to your car if it is damaged in an accident.
- Comprehensive coverage pays for your car if it is stolen or for repairs if it is damaged by a falling object, fire, flood, vandalism or an animal.
- Older cars, or those in poor condition, may not warrant physical damage coverage. If you do opt to purchase this coverage, choosing a higher deductible can make a substantial difference in your premium.
This coverage pays a daily amount for a rental vehicle while your car is being repaired after a covered loss, such as an accident.
Emergency roadside service coverage typically covers services such as fixing a flat tire, jump-starting a stalled vehicle or towing.
Uninsured and Under-insured Motorists Coverage
These types of coverage will pay if an uninsured or under-insured motorist seriously injures you or a member of your household. The coverage, which does not pay to repair damage to your vehicle, usually comes with limits of $20,000 per person and $40,000 per accident.
“Michigan no-fault insurance law is very complex,” said Mark Bernstein of The Sam Bernstein Law Firm. “That’s why you should call us immediately if you or a loved one is injured in an auto accident. Our experienced attorneys understand the nuances of the no-fault system, and we will fight to win the compensation you and your family deserve.”
Michigan no-fault insurance laws are complicated, but finding the right attorney is simple.
Call 1-800-CALL-SAM today for a free, no-obligation consultation.