Motor City Madness: How to Avoid Michigan Auto Insurance Rate Increase
As a young car owner, nothing beats sitting in those soft leather seats, breathing in that new car smell, and hearing your engine purr. At this point, you might think about how many young people also have their own cars and the fact that you’re lucky to have one under your name. According to a report from Fox Business, there are actually a large number of young car owners like yourself:
“… Consumers age 25 and younger are steadily becoming a greater proportion of total retail vehicle purchasers — a trend that’s been ongoing since 2009, says Jeff Youngs, of J.D. Power’s Web marketing group. The findings seem to dispel the common view that novice drivers don’t have the means or the interest to make such large buys so early in life, says Arianne Walker, J.D. Power’s senior director of automotive media & marketing.”
Despite the growing number of people owning cars at a young age, you should still consider yourself lucky. After all, not everyone can afford to purchase a new car along with the auto insurance that Michigan requires resident drivers to have (Michigan has one of the highest insurance rates in the country).
Auto insurance rates tend to be very expensive for young drivers, primarily because statistics show that the age group is more prone to accidents. However, you can work your way around this by applying to have your rates reduced later on. If you plan to do this with your current insurance, here are a few ways to guarantee that reduced rate:
A driving record free of both accidents and tickets can substantially reduce your insurance rates. Whenever you’re out on the road, never forget that you should drive defensively. At the same time never put yourself in potentially dangerous situations (drinking before driving, driving while sleepy, etc.)
Where you park your vehicle affects your rates, so moving into a more secure neighborhood can help reduce your rates. Try asking insurance experts which neighborhoods are the safest in your area.
Of course, you can always get a great deal on car insurance in Michigan from reputable brokers like Allied insurance Managers, Inc. These experts can help you understand the importance of having insurance and find the best coverage at the best rate. When combined with the tips above, you could be facing some of the lowest insurance rates in the state.
(Source: Tips for Young Drivers to Save on Auto Insurance for New Cars; Fox Business; February 26, 2014)