Auto Insurance Rate Comparisons In Michigan

When it comes to making auto insurance rate comparisons in Michigan you need to look for carriers that are strong and reliable. It is important for you to be careful about whom you deal with as there are many auto insurance providers competing for your business, and not every one of these companies is absolutely reliable.

Before you decide on an auto insurance provider you must be aware of Michigan State Laws that requires every insured person to have Bodily Injury Liability coverage of twenty thousand dollars to forty thousand dollars per accident. Property Damage Liability cover is also required by law and has to insure to the value of at least ten thousand dollars. Such basic auto insurance coverage is generally referred to in an equation, as 20/40/10 auto insurance coverage.

Another aspect to Michigan state auto insurance is that the state has its own No-fault system in place, in which an auto insurance provider must pay the insured regardless of whose fault it was. Of course there is a limit to how much payment you can receive and this No-fault system will also deprive you of some of your rights to initiate court proceedings against another party.

When making comparisons for your insurance you must also look at Personal Injury Protection or PIP policies that will pay your medical bills for any injuries that may be sustained by you in the case of an automobile accident. This policy covers you for medical as well as work loss.

In the year 2009, the average auto insurance coverage premium for the state of Michigan was about 2, 229 US dollars whereas the national average was at 1, 794 US dollars. However, auto insurance companies are known to segment their auto insurance rates in different ways so that different needs can be met with different policy options.

Auto insurance rates have indeed changed over recent times and in fact these rates have actually increased by as much as twenty-six percent in one year - from 2008 to 2009. Strangely enough no price hikes took place between the years 2007 and 2008.

To get the best rates you must also be able to show a perfect driving record. You can also get better rates by checking out quotes from a wide range of carriers. Special plans are offered to drivers according to the number of miles they drive and if you are a low mileage driver you may qualify for reduced insurance rates. There are also a number of other factors that may qualify for cheaper rates.