If you drive under a certain number of miles, you may be able to save money on car insurance rates. Low mileage discounts offer reduced premiums for annual miles that are below a certain limit. Usage-based discounts offer discounts for acquiring good driving habits (they are controlled by a device that is placed in the vehicle). Auto insurance in Michigan is expensive because it's a no-fault state with high insurance coverage requirements.
The cheapest states for car insurance are Iowa, Vermont and Nebraska, according to the WalletHub cheap car insurance study. If you move out of town, you'll see that the rates go the other way: Ann Arbor costs 18 percent less than the state average and Warren 77 percent less than the state average. State laws govern how much insurance coverage drivers must have, and no-fault laws affect insurers' risks. It's also important to know that while USAA offers the cheapest car insurance on average for Michigan drivers, only members of the military, veterans, and their immediate family members can qualify for USAA coverage.
To learn more about how to get cheap car insurance while still having quality coverage, WalletHub posed the following questions to a panel of experts in Michigan. In many cases, you can save money on your car insurance simply by having a “low-risk” profession or by having a degree in an approved occupation. Many auto insurers offer “full payment” discounts for drivers who pay their entire policy every six months or every year. That's because there are specific parts of your own profile that auto insurance companies will use to set their rates.
Of course, insurance companies will consider you to be at greater risk of having a car accident if you are caught driving under the influence of drugs or alcohol (DUI). Car insurance becomes expensive for people with irregular driving histories, poor credit, or for those who live in extremely congested areas with others who suffer a lot of accidents. But the main reason Michigan drivers pay more for car insurance than anyone else in the country is that it's the only state with unlimited insurance. Aside from that, the best way to reduce your car insurance costs is to compare the rates of at least three insurance companies.
You can demonstrate your financial responsibility by maintaining minimal car insurance with no gaps in coverage.