8 Tips Shown to Lower Car Insurance Costs in Novi, MI

Are you sick and tired of scraping the payment together to pay your car insurance bill each month? Your situation is no different than many other Michigan drivers.

Because you have many online and local companies to choose from, it is very difficult to choose the right provider.

It’s important to price shop coverage yearly because rates are rarely the same from one policy term to another. Just because you found the lowest price a few years ago a different company probably has better rates today. So forget anything you know (or think you know) about car insurance because you’re going to get a crash course in the only way to save on car insurance.

Choosing the best insurance company for you in Novi is easy if you know what you’re doing. Basically, anyone who shops for car insurance will more than likely be able to lower their premiums. But Michigan consumers must understand how insurance companies market on the web and apply this information to your search.

Don’t miss these eight discounts

Car insurance companies don’t always publicize all available discounts in an easy-to-find place, so we researched both the well known and also the lesser-known discounts you could be receiving.

  • Homeowners Savings – Owning a house in Novi may earn you a small savings because of the fact that having a home demonstrates responsibility.
  • Discounts for Safe Drivers – Drivers who avoid accidents may receive a discount up to 45% less than drivers with accidents.
  • Low Mileage Discounts – Fewer annual miles could qualify for better rates on cars that stay parked.
  • Senior Citizens – If you’re over the age of 55, you may be able to get a discount up to 10%.
  • Seat Belts Save – Using a seat belt and requiring all passengers to use their safety belts can save up to 15% off your medical payments premium.
  • No Charge for an Accident – A few companies allow you one accident without raising rates so long as you haven’t had any claims prior to the accident.
  • Early Signing – Some companies give discounts for signing up prior to your current policy expiration. This can save 10% or more.
  • Anti-theft System – Vehicles equipped with anti-theft or alarm systems prevent vehicle theft and qualify for as much as a 10% discount.

A little note about advertised discounts, many deductions do not apply to the entire policy premium. The majority will only reduce individual premiums such as liability, collision or medical payments. So even though they make it sound like all the discounts add up to a free policy, companies don’t profit that way.

To choose providers with discount car insurance rates in Michigan, click this link.

Compare the Market for Car Insurance in Novi

Shopping for lower car insurance rates can take hours if you don’t understand the most efficient way. You could waste a few hours talking about coverages with agents in Novi, or you can utilize online quotes to get pricing more quickly.

Many insurance companies are enrolled in a marketplace where insurance shoppers submit one quote, and at least one company returns a competitive quote determined by their information. This saves time by eliminating repetitive form submissions to each individual car insurance company.

To find out what other companies charge click here to start a free quote.

The one downside to using this type of system is buyers cannot specifically choose which carriers you want pricing from. So if you prefer to pick from a list of companies to receive pricing from, we put together a list of low cost car insurance companies in Michigan. View list of Michigan insurance companies.

Whichever method you choose, make darn sure you compare identical deductibles and coverage limits for each comparison quote. If you are comparing different limits and deductibles on each one it will be impossible to determine the best price in Novi. Quoting even small variations in coverages can result in a big premium difference. Just keep in mind that quoting more helps locate lower pricing.

What is the best insurance coverage?

When it comes to buying coverage, there really is no best way to insure your cars. Your needs are not the same as everyone else’s so your insurance should reflect that Here are some questions about coverages that may help you determine whether you might need professional guidance.

  • Am I covered when driving someone else’s vehicle?
  • What happens if I owe more than my vehicle is worth?
  • Does my insurance cover my expensive audio equipment?
  • When should I drop full coverage on my vehicle?
  • Are there companies who specialize in insuring high-risk drivers?
  • Can I afford to buy a different vehicle if my vehicle is totaled?
  • Are my tools covered if they get stolen from my vehicle?
  • What is high-risk coverage and where do I buy it?
  • What discounts do I qualify for?
  • Should I file a claim if it’s only slightly more than my deductible?

If you don’t know the answers to these questions but you think they might apply to your situation, you might consider talking to a licensed insurance agent. To find an agent in your area, complete this form or you can go here for a list of companies in your area.

What about using a local agent?

Certain consumers would prefer to visit with an insurance agent and there is nothing wrong with that. One of the great benefits of getting online price quotes is the fact that you can find the lowest rates and still choose a local agent.save money concept

For easy comparison, once you complete this form (opens in new window), your insurance data is emailed to companies in Novi who will compete to get your business. You never need to even leave your home since price quotes are sent directly to your email. Get lower rates and work with a local agent.

Picking a company requires more thought than just the premium amount. Agents should be asked these questions:

  • What insurance companies do they work with?
  • Are you getting all the discounts the company offers?
  • Will their companies depreciate repairs to your car based on the mileage?
  • Is the agency involved in supporting local community causes?
  • Do they feel the quoted coverages are adequate?
  • Are they able to influence company decisions when a claim is filed?

Compare rates from both independent and captive auto insurance agents

When looking for a reliable agent, you need to know there are two different types of agents from which to choose. Novi agents are classified as either captive or independent.

Agency Captives

This type of agents can only place business with one company such as State Farm, Allstate and AAA. They generally cannot give you multiple price quotes so they are skilled at selling on more than just price. Captives are well schooled in insurance sales which helps them compete with independent agents.

Shown below are Novi captive insurance agents who may provide you with price quotes.

Farmers Insurance Group – 24100 Meadowbrook Rd # 105 – Novi, MI 48375 – (248) 478-3140
State Farm Insurance – 41390 W 10 Mile Rd – Novi, MI 48375 – (248) 477-8383
Farm Bureau Insurance – 47680 Grand River Ave – Novi, MI 48374 – (248) 662-0180

Independent Agents (or Brokers)

Independent agencies do not work for one specific company but rather can write business with any number of different companies depending on which coverage is best. To move your coverage to a new company, the business is moved internally and you don’t have to find a new agent.

When comparison shopping, you should always get quotes from at least one independent agent to have the most options to choose from.

Shown below are Novi independent insurance agencies that are able to give price quote information.

Faber Agency Inc – 43343 Grand River Ave – Novi, MI 48375 – (248) 344-0460
Nu Star Insurance – 39555 Orchard Hill Pl – Novi, MI 48375 – (248) 344-9042
Tom Wilson Agency – 46410 Grand River Ave – Novi, MI 48374 – (248) 449-1333
Semer Agency Inc – 45380 W 10 Mile Rd # 125 – Novi, MI 48375 – (248) 380-4664
Eric Quigg Insurance – 24300 Catherine Industrial Dr – Novi, MI 48375 – (248) 468-2445

To view a complete directory of insurance agents in Novi, click here to link.

Upon receiving positive feedback to all your questions and a low price estimate, chances are good that you have found an insurance agent that meets your needs to properly service your car insurance policy. But keep in mind once you purchase a policy you can terminate coverage for any reason so don’t feel that you are obligated to the car insurance policy with no way out.

Specific coverage details

Understanding the coverages of a car insurance policy can help you determine the right coverages at the best deductibles and correct limits. Car insurance terms can be difficult to understand and nobody wants to actually read their policy. These are the normal coverages offered by car insurance companies.

Med pay and Personal Injury Protection (PIP)

Coverage for medical payments and/or PIP pay for expenses for things like funeral costs, chiropractic care, rehabilitation expenses, prosthetic devices and surgery. They can be used to cover expenses not covered by your health insurance program or if there is no health insurance coverage. Medical payments and PIP cover not only the driver but also the vehicle occupants as well as getting struck while a pedestrian. Personal Injury Protection is not an option in every state and may carry a deductible

Uninsured/Underinsured Motorist (UM/UIM)

This coverage provides protection when the “other guys” either are underinsured or have no liability coverage at all. It can pay for hospital bills for your injuries as well as your vehicle’s damage.

Michigan insurance prices

Since many Michigan drivers carry very low liability coverage limits (Michigan limits are 20/40/10), it doesn’t take a major accident to exceed their coverage limits. This is the reason having UM/UIM coverage is important protection for you and your family.

Coverage for liability

Liability coverage protects you from injuries or damage you cause to a person or their property by causing an accident. Split limit liability has three limits of coverage: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You commonly see policy limits of 25/50/25 which means a limit of $25,000 per injured person, $50,000 for the entire accident, and a limit of $25,000 paid for damaged property.

Liability insurance covers claims such as pain and suffering, medical services and legal defense fees. The amount of liability coverage you purchase is a personal decision, but consider buying as large an amount as possible. Michigan requires drivers to carry at least 20,000/40,000/10,000 but you should think about purchasing more liability than the minimum.

Collision coverage

Collision insurance pays to fix your vehicle from damage resulting from colliding with a stationary object or other vehicle. You first must pay a deductible and the rest of the damage will be paid by collision coverage.

Collision can pay for things such as scraping a guard rail, crashing into a building and backing into a parked car. This coverage can be expensive, so you might think about dropping it from vehicles that are 8 years or older. It’s also possible to choose a higher deductible to get cheaper collision coverage.

Comprehensive insurance

This coverage pays to fix your vehicle from damage OTHER than collision with another vehicle or object. A deductible will apply and then insurance will cover the rest of the damage.

Comprehensive can pay for things such as damage from flooding, damage from getting keyed, vandalism and theft. The maximum payout a car insurance company will pay at claim time is the actual cash value, so if your deductible is as high as the vehicle’s value consider dropping full coverage.

Better coverage you can count on

When shopping online for car insurance, it’s very important that you do not buy poor coverage just to save money. There are a lot of situations where consumers will sacrifice full coverage and discovered at claim time that the few dollars in savings costed them thousands. Your focus should be to get the best coverage possible for the lowest price.

Budget-conscious car insurance is attainable on the web as well as from independent agents in Novi, so you should be comparing quotes from both in order to have the best price selection to choose from. There are still a few companies who don’t offer the ability to get a quote online and many times these small, regional companies only sell through independent insurance agents.

More tips and info about car insurance is available at the Michigan Office of Financial and Insurance Regulation website. Michigan consumers can find out which companies have the most complaints, find a variety of consumer forms, learn about specific coverages, and read state legal mandates and laws.