The main purpose for this article is to tell you some facts about car insurance in Michigan and why it may be something of a concern. Let's get this party started:
As a general rule, "auto insurance" refers to any policy or plan that covers the expense of repairing or replacing a vehicle (or that limits) the use of a motor vehicle to protect against injuries or a set of damages that occur as a result of an occurrence.
There are many different types of auto insurance plans, from basic coverage with no deductibles, like standard policy, to more comprehensive policies that cover all types of accidents that may occur while driving your car.
Most people buy their car insurance when they purchase a new vehicle. It might be for safety reasons, like protection from other motorists, traffic violations, vehicle theft, or even vandalism.
Some people also pay extra on top of what the current owner of the car is responsible for paying.
This isn't always something that happens -- sometimes it is just something that happened. If your car has ever had a wreck or accident (which can be a great way to get cheap money), then you want to know if you can avoid paying out more than necessary from your insurance provider.
You should also be aware of how much your car insurance will cost you in comparison to the rest of the country's population and the state of Michigan in particular.
As explained above, you can find out the amount of money you're being taken out of each month -- depending on which type of insurance plan you choose, You'll end up paying $26 each month.
But wait, there's more! You need to know what happens from your insurance company to your insurance company after a collision or when your car gets stolen.
How frequently do these occurrences occur?
According to data compiled by Compare the Market, there were over 6,000 collisions reported in 2010 alone, with 2,818 resulting in at least one fatality.
That means that two-thirds of collisions in 2010 resulted in some sort of injury or death.
So if we're going to say that only two-thirds of collisions lead to injury, then that's true enough to put your premiums sharply up.
Of course, there have been instances of insurance companies denying claims, which is quite common when you compare rates online. But just because someone hasn't been injured doesn't mean that he should settle for nothing.
Sometimes a person who was seriously hurt in a crash has won nearly every lawsuit he or she filed against his or her insurance company.
However, it does mean that the driver might end up paying thousands of dollars more to the same company than he or she was supposed to pay.
This is good news because it means the court system has made some changes to deal with the costs of lawsuits and insurers have done everything they can to try to reduce those costs for everyone involved. Hopefully it will continue down this road as well.
What a lot of people don't realize is that most car insurance policies aren't all that expensive. While many of them are relatively affordable, especially for first time drivers, some are very high-priced.
A typical family of four would want a minimum of $5,000 covered for personal coverage, as well as $3,000 for kids ages 16 months to 17. Plus, depending on what your vehicle gets and where you live, your family could be entitled to unlimited travel coverage.
When your car breaks down, and when the insurance pays for repairs, it might be well under 10 percent of the total car value.
Again, since many people buy their cars and take insurance with them, the fact that you've chosen to drive on a budget shouldn't make your insurance premium go up.
It makes the law, after all. In addition to making sure the insurance company is paid, most companies offer discounts to first time drivers. Even though premiums aren't that high, they can still add something to the mix that you wouldn't pay for.
For example, if you choose to drive to work yourself, your car insurance might be enough to give it away. On the other hand, if you choose to drive your car to the store and never go home, you're likely to pick up your vehicle again in another ten years.
Since most vehicles break down fairly frequently, this is often something that causes you to spend an awful lot of money on the issue yourself.
Not only do drivers sometimes have more money to spend when they get into trouble, but they spend more money trying to find ways to stay safe.
All of those things that can cause your car insurance rates to go up are something that can affect other aspects of your life too -- not just your own.
So if your car insurance isn't that high, is it something you should pay attention to? Sure, it can make a huge difference in your life, but that doesn't mean there isn't something else you need to care about.
Whether it's your credit card debt or a slow economy, taking care of your car is important. No matter how bad things are, there are ways to turn a negative into a positive.
Be a smart consumer and use car insurance for what it can do to help improve your life.