7 Common Auto Insurance Mistakes That Can Cost You Thousands in Michigan
Most people don’t think much about their auto insurance until something goes wrong.
Unfortunately, that’s usually when coverage gaps, low limits, or missing options become very expensive problems.
Here are 7 common auto insurance mistakes I commonly see drivers make here in Michigan and how to avoid them.
1. Choosing the Cheapest Policy Without Reviewing the Coverage
Price matters, but the cheapest policy isn’t always the best value.
Many drivers focus only on the monthly payment and don’t realize they may have:
- Low liability limits
- No rental coverage
- No roadside assistance
- High deductibles
- Limited optional coverages
A lower premium can sometimes mean much higher out-of-pocket costs later.
2. Keeping Deductibles Too Low or Too High
Your deductible should fit your financial situation.
Some people keep extremely low deductibles and end up paying much higher premiums than necessary. Others select very high deductibles and later realize they can’t comfortably afford them during a claim.
The right balance depends on your budget and comfort level.
3. Not Reviewing Coverage After Major Life Changes
A lot can change in just a few years:
- New drivers
- New vehicles
- Moving
- Marriage
- Divorce
- Home ownership
- Longer commutes
- Teen drivers
Your policy should evolve with your life. Many people stay on outdated coverage for years without realizing it.
Need a second opinion on your current policy?
(586) 742-0316
Or request a quote online here:
Auto Insurance Quote Request Form
4. Assuming Full Coverage Means Everything Is Covered
“Full coverage” is one of the most misunderstood phrases in insurance.
Even with comprehensive and collision coverage, there may still be limitations, exclusions, deductibles, or optional coverages that need to be added separately.
It’s always important to understand exactly what your policy includes.
5. Carrying State Minimum Liability Limits
Michigan’s minimum limits may technically satisfy legal requirements, but they may not fully protect your finances after a serious accident.
Liability coverage helps protect:
- Your savings
- Future income
- Assets
- And potentially even your home
Higher limits are often more affordable than people expect.
6. Forgetting About Uninsured or Underinsured Drivers
Not everyone on the road carries enough insurance.
Uninsured and underinsured motorist coverage can help protect you if another driver causes an accident but doesn’t have adequate coverage.
This is an important coverage many people overlook.
7. Never Shopping Your Policy
Auto insurance rates change constantly.
A policy that was competitive 2 years ago may no longer be the best fit today. Reviewing your policy periodically can help ensure your coverage and pricing still make sense.
At Clear View Insurance, I take the time to review policies carefully and help clients understand their options without pressure or confusion.
Questions about your current auto insurance?
(586) 742-0316
Get a quote comparison here:
Auto Insurance Quote Request Form