The lowest priced car insurance may not provide the coverages you think you have (part 2).

February 17, 2025 / Mike Hoskins / Comments Off on The lowest priced car insurance may not provide the coverages you think you have (part 2).

In part 1, we introduced the idea of looking at a proposal vs. a quote.   Understanding the value of the total proposal package (price, value/coverage, and service) you are considering vs. price alone is what is important.  We also reviewed what coverages to look for compared to the price being quoted.  

In part 2, we will take a look at a couple, sometimes missed, optional coverages and how finding discounts and having multiple policies can drive costs down without sacrificing coverages, and sometimes enhancing coverages.

Other coverages that may not be included in a quote vs. a proposal

Mini Tort Liability – A mini tort claim in Michigan is an auto accident victim’s right to recover up to a maximum of $3,000 for vehicle damage from the at-fault driver who caused the crash – either through his/her automobile insurance company or from him/her personally.  Adding this optional coverage to your policy has your auto insurance policy pay this claim should you be the at-fault driver.  Without this coverage, you may need to pay up to $3,000 from your own pocket to the other party after likely going through the small claims court process.  Policies without this coverage will cost less.  Make sure you know whether or not the insurance quote you are reviewing includes mini tort liability coverage.

Guaranteed Asset Protection (GAP) insurance – this optional coverage pays the difference between the market value of your car and what is owed on a loan or lease if the vehicle is deemed a total loss after an accident.  New cars tend to lose 20% of their value in their first year.  If your car is totaled and you owe more on the loan than the car’s market value, you could be liable for the difference if you do not have this coverage.  If you have a car with a loan or a lease, make sure you know if the quote you are reviewing has this coverage included or not in the price.

Did you get your discount?

Discounts are the name of the game to drive down costs.  Insurance carriers offer discounts for many different things.  Not all carriers offer the same discounts.  Make sure to inquire about the different discounts that may be available.  An example of some discounts are fitness club membership discounts, credit union membership discounts, Alumni Association membership discounts, loyalty discounts, good driver discounts, advance quote discounts, and the list goes on and on.

Consider adding an umbrella, renters, Home, or Life policy.  Some insurance carriers offer additional discounts if you add another policy.  In some cases, adding an additional policy creates a large enough discount to mostly or in total pay for the cost of the additional policy.  Make sure you are not leaving any discounts or coverages on the table when reviewing your insurance quote.

Ask your agent about what auto coverage fits your needs

Creating an insurance proposal package is like creating a recipe with the proper amount of ingredients that fit your tastes.  Everybody has different risks they need covered, and they also have different financial statuses that allow the ingredients to be different.  Looking at insurance quotes and the lowest pricing is short-sighted and a set-up for future financial and legal disasters.  The right type of coverage for you depends on various factors.   When you review your next insurance package proposal with your agent, look for the proper balance between price, value/coverage, and service.

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Mike Hoskins