- Every car owner in Michigan must have specific no-fault insurance coverage with required limits for their car: personal injury protection, property protection insurance and residual liability insurance, bodily injury and property damage. The insurance pays for medical bills and lost wages; property damage to buildings, structures and parked vehicles up to $1,000,000 and protect you, under certain circumstances, from lawsuits resulting from an accident. Other coverage offered by insurance carriers are optional, but all, including required coverage, come with discounts.
Car Insurance Discounts
- Michigan doesn't require insurance companies to offer discounts, so availability of the discount depends on the insurer. If you raise a deductible, a premium reduction takes place because this limits the insurer's liability. On personal injury protection, you receive a discount if you make your personal or group health insurance and disability insurance the primary insurer for your medical costs and lost wages, after which your car insurance picks up the difference.
Purchasing auto insurance through groups, such as credit unions, employers and organizations can also save you money. If you are a senior citizen, waive the work-loss portion of personal injury protection. Receive discounts for antilock brakes, air bags, anti-theft devices, multiple vehicles on the same policy, multiple policies with the same insurer, good student; student away at school discounts, high credit scores or being claim or ticket free.
- Homeowner's insurance can be expensive, but take steps to decrease your premium. The easiest decrease is to increase your deductible. Since this lessens the insurer's liability, it reduces your premium, as you have taken on more of the risk. Discounts may be available if you purchase the insurance as a member of a group or you are 55 or older. Many companies also offer multiple policy discounts, such as purchasing homeowner's and auto insurance.
Discounts are offered for good credit scores and for long-time customers. Specific discounts relate to safety, such as deadbolt locks, smoke and carbon monoxide detectors, fire extinguishers or central station burglar and fire alarm systems. You may receive discounts if you upgrade the electrical, plumbing or heating systems in your house or if you installed a new roof. Discounts may also be available based on the age of your home.
- Homeowner's insurance comes in two forms -- repair cost or replacement cost. To purchase a repair cost policy, your home must be valued at $15,000 or more. For replacement cost coverage, it must be worth at least $35,000. Repair cost replaces damaged property with modern materials, so it could substitute plaster walls with drywall. You may not receive enough to restore it to its original condition. Replacement cost coverage restores your property to the condition it was in prior to the claim. Your property is restored with the same kind and quality of materials.