GRAND RAPIDS, Mich. — Auto insurance premiums are increasing nationwide, as well as here in Michigan.
They're being impacted by the frequency and severity of crashes.
13 ON YOUR SIDE talked with Anita Fox, the Director of the Michigan Department of Insurance and Financial Services (DIFS) about how families should shop for the right insurance to fit their budgets and needs.
Q: What are the best ways to shop around?
A: "Get quotes on a number of different things like you mentioned. If you change your deductible. What does that do to your premium? If I change how I rely on my health insurance, does that change my premium? Another thing I'd ask is, what kind of discounts am I entitled to? Different companies may offer different discounts. Some companies say if you have a child on your policy that's getting all A's and B's, you can get a good student discount. If you belong to an alumni association or if you work a certain place or graduated from a certain place, you'll get very specialized discounts from a certain place. You just need to ask."
Q: How about deductibles?
A: "The individual rates for a particular person are determined on a very individualized basis. That's why it's important to shop around. For other words, it depends on the kind of car you have, how many accidents or ticket you have so we really encourage drivers to shop around." 00;05;15 butt to "make sure you're comparing apples to apples. Make sure it's the same deductible and coverage limits. The same people in your family are covered."
Q: Should I eliminate the health coverage on auto insurance to save money?
A: "You can always coordinate your auto and health insurance so your health paid first so you can lower your premiums, but now as you mentioned, you can completely opt out and rely only on your health insurance and that may be a good decision for some families. I will tell you that auto insurance covers additional things that health insurance doesn't. You're basic hospital cost, doctor cost, physical therapy those will be covered under either in most cases. But some things like home modifications and some other things that might be part of medical benefits under a no fault policy might be different and that's something else to take into account when making that decision."
Q: "When should someone consider switching their insurance to full coverage or PLPD to save money?
A: "Again, it's very individualized for a number of reasons. One, if you have a loan on your car, you have to check with your lender and see what they require. THey also sell what's called GAP insurance that's a policy you can buy that will cover if your car ends up being totaled and if it was wroth less than you still owe the bank. There are insurane policies that cover that difference so you don't end up paying on a car you can't even drive. Whehter you get to a point where you don't need that additional coverage, that's a great question to ask your auto insurance agent or company."
If you have any questions about your auto insurance or claim, you can contact the Department of Insurance of Financial Services.
They have a live call center Monday through Friday -- 833-ASK-DIFS or email AutoInsurance@michigan.gov for assistance.
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