How The Stuff In Your Car Can Save You Money

Apr 22, 2020, 1:40 PM

If you’re in Michigan, you probably already know about the state’s no-fault reform changes coming this July. There’s a variety of changes to who’s covered by an insurance policy, how much coverage is worth, and much more. We’ve got an entire webpage devoted to it. But people in Michigan aren’t the only ones who need to know about personal auto insurance policies. Let’s take a look at the fundamentals of this essential coverage.

A Personal Auto policy is for someone who owns their own car or truck. There’s a separate type of coverage, Commercial Auto, for businesses that have delivery trucks or other company transportation. (We offer that too.)



You might know that insurance is regulated by the state it’s in, so in Michigan, the new no-fault reforms apply to every insurance company and every policyholder. One way we promote our insurance policies is by offering discounts to some of the coverages that are part of our Personal Auto insurance. 

We use vehicle identification numbers (VIN) when putting together an auto policy. VINs identify factory-installed safety equipment and automatically apply discounts. Here are just a few of the discounts that are automatically included if you have the appropriate equipment on your car or truck:

Anti-lock brakes (ABS) discount — Anti-lock brakes are found on most vehicles on the road today. One of our goals is to encourage safety and save lives, and offering a discount for anti-lock brakes is one way to do that. This discount applies to several different coverages in a policy.

Anti-theft devices discount — There are several different mechanisms for vehicle security. One is a hood lock release inside the car, so no one can get to the engine without getting inside the car first. There are also car alarms, which you hear when they’re accidentally triggered during the night or in the middle of a parking lot, and disabling devices, which prevent the car from starting or operating except for specific circumstances, like needing a “smart key” near the ignition before it will work. Discounts for these devices apply to Other Than Collision coverage.

Passive restraint discount — A passive restraint is better known as an automatic seat belt or air bag. Like anti-lock brakes, it’s standard on most vehicles. This discount applies to medical coverage offered on the policy.

Claim-free discount ladder — This is a little like the deductible credit you read about a few weeks ago: The longer you don’t file a claim, the bigger the percentage of your discount, up to 15% for 60 months or 5 years claim free. If you end up filing a small claim, your discount percentage may be reduced, but you’ll still earn a discount in most cases. This discount also applies to several different coverages in a policy.

These are just some of the discounts we offer to Personal Auto policyholders. As you can see, most of them are for pretty basic stuff you probably already have in your car. You’ll be able to see the discounts you have on the policy declarations pages you receive with the packet of information you receive when you renew your policy. 

If you have any questions don’t hesitate to call out to your local independent insurance agent.