Cash for Clunkers Inspires an Insurance Discount

Cash for clunkers has been a sucessful program, cinsidering it has raised new car sales 40% and taken 700,000 clunkers off the road. Inspired by this consumer optomism, in the spirit of saving money, Allstate is offering a new car discount. Not only the federal government is helping auto buyers, but Allstate is hoping on the band wagon by offering a discount for new cars.



The new car discount is not the only one avaliable. View the full list of auto insurance discounts avaliable from Allstate. Many other companies also offer many similar discounts such as good student and multi-car discounts.

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The Most Stolen Vehicles in Michigan: Are you Driving One?

Owning auto insurance cannot completely relieve the fear of having a car stolen, but it helps to be informed about the most popular vehicles and why they are stolen.

In Michigan, the top 12most stolen cars of 2007 were:

1. 2000 Dodge Intrepid
2. 1999 Dodge Intrepid
3. 2000 Dodge Caravan
4. 1996 Dodge Caravan
5. 2005 Dodge Ram
6. 2000 Jeep Cherokee
7. 1999 Dodge Caravan
8. 1998 Dodge Caravan
9. 1999 Jeep Cherokee
10. 1997 Ford Taurus
11. 2006 Dodge Durango
12. 1999 Ford Taurus

Photo by Brad Finkelstein

Suprisingly, it is not the newer cars that are more likely to be ripped off, the list is filled with vehicles from the late 90's and just a few after 2000. The reason that the same model is on the list multiple times is that if the model is not redesigned, the parts from the models are interchangable and more valuable.

In the event that your car is actually stolen insurance will pay out the actual cash value of the car minus the comprehensive deductable. So, if your 2002 Ford Focus is agreed to be worth $3,500 and your comprehensiave deductable is $500 you would get a $3,000 check from your insurance company.

To see more about how auto theft affects insurance rates visit the Michigan State Police site, or view the document containing this list.

Michigan's Requirements for Auto Insurance

In Michigan, all cars must have no-fault insurance. This means that every car on the road must be insured, and if an accident occurs their own insurance will cover any costs according to their plan.
The seceratary of state says the required coverages include: "bodily injury/property damage (BI/PD), personal injury protection (PIP), and property protection insurance (PPI)"

This basically means that if you have the state minimums of 20/40 (bodily injury/property damage) then you will still have to pay for any damage to your vehicle on your own. This low amount of coverage is generally recomended only for older cars.

You need to be able to prove that your automobile is covered by insurance if a police officer pulls you over. If you are not able to prove your insurance coverage to the officer, the SOS says,

"the court may order the Secretary of State to suspend your driver license. Until proof of insurance is shown, the Secretary of State will not renew, transfer, or replace your vehicle’s license plate. You may be required to prove the vehicle is insured for not less than six months and pay $50, plus any other fees required by law. The plate could also be canceled if proof of insurance is not produced."

As you can see, there are some stiff punishments from not having insurance. To avoid this, or ensure you and your car are properly covered, call your Michigan Allstate agent Craig Borowsky.

Toll free number (888) 991-2557
Visit the Secritary of State for the full Offical Michigan Insurance Requirements