Car Insurance in the Detroit area (Livonia, Farmington Hills: renters, crime rates, how much)

[KayAnn246]

Recently I bought a new Caddy. I've lived in NC for a long time but I'm finally moving back to Canton or Farmington Hills. In NC, I've always had trucks that were 1-4 years old and never paid more than $400 ever 6 months for full coverage. Well my 2012 Caddy in NC for 6 months is around $280 for full coverage.

I called my insurance company(military affiliated) to get a update premium for my move to MI. Well, I was shocked that they said $759 for 6 months! Holy sh**! Almost three times the amount. If i moved to Farmington Hills instead of Canton, it would be $100 more!!! Even my renters insurance will double. Anyone have any advice on ways to lower premium for full coverage? How much do you pay for full coverage?

[Coldjensens]

Mchigan has a law that requries you to include long term major disability or critical care insurance of some kind in your insurance. It is really expensive and applies to about .00001 percent of the population, but everyone has to buy it. It was a clever coup by the insurance companies to get that law passed IMO. Bascially it forces you to buy special insurance that you would never buy for yourself if you were to analyze the cost vs the risk.

I was amazed when we moved to Michigan as well. When I left Michigan for California my car insurance went up 10X. I was told this was becuase Michigan was a no fault state and it costs a lot more when everyone sues each other over every accident.

When I returned, I expected it to go down - it nearly doubled. I was told that this is becuase Michgian is a no fault state and no fault is more expensive (???), also becasue of the long term critical care or whatever it is called.

It will be more expensive. Just be glad you are not in Detroit or it would double or more again.

Shop around. You may find other companies that are cheaper. USAA was far from cheapest for us, in fact they were not even competitive. If you bundle your renters and car insurance together, you may get a discount. If insurance is a major issue for you, consider other areas like Northville, maybe Plymouth or Livonia. They base your Comprehensive premium in part on the crime rates where you live. (Which is dumb since my car spends at least equal time in Detroit (very high crime) as in Grosse Ile (almost no crime), but since I live in Grosse Ile, my rates are low).

[ram2]

Michigan has this crap called no-fault insurance. Enough said.

[caspper69]

Originally Posted by ram2

Michigan has this crap called no-fault insurance. Enough said.

You know, I hear this a lot, but I don't think it's actually true. No-fault is a good system. It keeps the courts from getting clogged over every single accident, regardless of severity.

With an at-fault system, you are dealing with the at-fault party's insurance company. Well, if you're not the at-fault party, and you're not insured with the same company, they basically have no reason to work with you at all. It makes the most routine things painful.

With no-fault, you deal with your insurance company and they deal with the other party's insurance company. Plus, with un/under-insured riders, you don't have to be concerned about getting into an accident with someone who doesn't have insurance.

Frankly, it's the catastrophic claims fund that adds about $75-100 to your policy. But even then, MI insurance isn't really that bad. I've looked into California, Florida, North Carolina and New York. All but NC were substantially more expensive, and NC was only marginally cheaper (10% or so).

OP should definitely shop around, because every company caters to certain markets and shuns others, which becomes evident in the premium pricing. You should expect to pay $400-$700 for full coverage with a manageable deductible for collision and comprehensive. Another thing to be aware of is that Michigan has broad-form collision coverage, which means you only pay your deductible if you're more than 50% at-fault. The reason I do this is that I can have a higher deductible, but I'm a safe driver, and I know that if I do get into an accident, chances are it won't be my fault. I figure if I screw up, I pay the higher deductible, but if someone else screws up, I pay nothing. I also carry very high limits on my policies ($500k/$500k) vs the standard $20k liability policy.

[zthatzmanz28]

Best way to lower premiums is to have PL / PD and an older vehicle. I know what you mean. We are currently paying $60 month for two vehicles with liability. When we get back into Michigan full-time this July, the same coverage will cost us nearly $125 month..

[ram2]

Originally Posted by caspper69

You know, I hear this a lot, but I don't think it's actually true. No-fault is a good system. It keeps the courts from getting clogged over every single accident, regardless of severity.

With an at-fault system, you are dealing with the at-fault party's insurance company. Well, if you're not the at-fault party, and you're not insured with the same company, they basically have no reason to work with you at all. It makes the most routine things painful.

With no-fault, you deal with your insurance company and they deal with the other party's insurance company. Plus, with un/under-insured riders, you don't have to be concerned about getting into an accident with someone who doesn't have insurance.

Frankly, it's the catastrophic claims fund that adds about $75-100 to your policy. But even then, MI insurance isn't really that bad. I've looked into California, Florida, North Carolina and New York. All but NC were substantially more expensive, and NC was only marginally cheaper (10% or so).

OP should definitely shop around, because every company caters to certain markets and shuns others, which becomes evident in the premium pricing. You should expect to pay $400-$700 for full coverage with a manageable deductible for collision and comprehensive. Another thing to be aware of is that Michigan has broad-form collision coverage, which means you only pay your deductible if you're more than 50% at-fault. The reason I do this is that I can have a higher deductible, but I'm a safe driver, and I know that if I do get into an accident, chances are it won't be my fault. I figure if I screw up, I pay the higher deductible, but if someone else screws up, I pay nothing. I also carry very high limits on my policies ($500k/$500k) vs the standard $20k liability policy.

Ohio does not have no-fault and has lower car insurance premiums than Michigan (I used to live in Ohio). I never had any problems listed above regarding collecting payment.

Uninsured/underinsured can be added as a rider anywhere, not just in no-fault states.

The no-fault states have the higher car insurance rates, which defeats the purpose of no-fault since the reason for it's existence is to lower insurance premiums.

Michigan also screwed consumers by not allowing you to sue another at-fault driver in small claims court to collect money to pay your deductible.

[ram2]

Connecticut tried no-fault some years back and quickly abolished it when the savings to consumers did not materialize.

[KayAnn246]

I'm not getting the difference between no fault in Michigan and the car insurance options in NC.

I called USAA yesterday. They are in fact the lowest. I have no tickets or other violations. I did get two tickets in Michigan last year but one was dismissed the other was switched to a parking ticket.

USAA says that Michigan has a Forgiveness accident program. NC doesn't have that. So I understand it to mean if I get into a at fault acciendent once in 3 years, it won't change my rates. Can anyone explain no fault? I've always carried Under/Un insurance as well.

[ram2]

No fault means your insurance company pays to fix your damaged vehicle even if the other driver is 100% at fault. This throws driver accountability out the window.

[animatedmartian]

It also means you can't sue (or be sued by) the other driver, at least not for damages to your/their car.