If you’re trying to get Michigan car insurance quotes with the lowest possible premium totals, it pays to know every discount available to drivers in the Wolverine State. Insurance companies use a very wide range of factors to determine if a driver should be considered a low-risk client. Insurance companies try very hard to attract low-risk clients because they feel they’re much less likely to have an accident, or to make a claim of any kind against their policy. When you get Michigan car insurance quotes they maybe substantially lower than your neighbor’s, even though you have similar cars and policy limits, it’s probably because your insurer has determined that you’re a better risk. Here is a short list of discounts that Michigan insurers use to attract low-risk clients.
Michigan allows auto insurance companies to consider your credit rating when determining your auto insurance rates. If you have a high credit score, you’ll almost always receive a lower rate than someone with bad credit. This can be due to one or more factors. You might simply get Michigan car insurance quotes that are lower than bad credit risks because the insurance company assumes you’re more likely to pay your premiums on time. They may also assume you’re just generally more cautious and reliable.
This is another discount that has more than one justification. Insurance companies see home ownership as a sign of stability. Your policy premiums are also based on where you live, and people who rent are more likely to move around. That might indicate that you’ll be driving in high-risk areas even though you signed up for insurance coverage in a low-risk area.
The longer you go between traffic violations, the more likely it will consider you a better driver. To get Michigan car insurance quotes that are truly the lowest available, you should have at least five years of ticket-free driving under your belt.
Every mile you drive increases the risk that you’ll have an accident that causes the insurance company to take a loss. If you rarely drive, you’re an ideal policyholder to the insurer. If you drive less than 10,000 miles every year, you may be able to get a substantial discount on your premiums, but you’ll have to prove your mileage on a yearly basis by having an inspection of your odometer.