I’ve been using mint.com to track my account balances for a few years now. I love being able to see all of my accounts in one place. Despite the love I have for the service, there is one thing I find annoying. Every so often, Mint prompts me with this reminder: You’re paying over 20% more for auto insurance than most Mint users. Get a quote and compare you’re rates. Do ya think!? Don’t they realize I KNOW THAT!? I live in THE most expensive state for car insurance.
The most expensive car insurance ever
It was quite the shock when we moved from Indiana (ranked 40th) to Michigan (ranked 1st). Our rates at least tripled.
We just so happened to move to the only state which requires auto insurance to include unlimited personal injury protection. This gives claimants lifetime coverage for injuries resulting from car accidents, which drives up our rates exponentially. It’s such a great idea, in fact, that exactly zero states are modeling their car insurance regulations after ours.
In addition, Michigan is one of several “no fault” states in which each insurance company has to compensate its own policyholders for the cost of injuries incurred in an accident regardless of who’s at fault.
Saving on car insurance
This is why it’s even more important to drive safely and avoid getting cited at all costs. Rates are already terrible, and getting a ticket or making an insurance claim will drive them up even more.
Another way we save on car insurance is by taking advantage of a multi-policy discount. Buying a homeowners policy and auto coverage from the same carrier can usually yield decent savings.
Every time you talk to your carrier, inquire about other car insurance discounts you may be eligible for. You should not just assume you are getting the best rate. There are discounts for certain age groups, alumni groups, professional associations, or for having multiple vehicles.
Other ways to save include increasing your deductible, driving less, comparing other carriers, considering car insurance costs before buying a new vehicle, and reducing coverage on older cars.
Unique State Laws
Though I live in a suboptimal area for car insurance, I did recently learned of another law that actually saved me money.
On an unrelated side note, I came across another Michigan law that states that a wife’s hair is legal property of her husband. My wife was not amused when I said I’d report her if she cut her hair.
Where does your state rank for car insurance? Are there any ridiculous laws in your state that save or cost you money?