With car insurance premiums continuing to climb across Michigan, many drivers are searching for ways to lower their bills. But Lawrence Kajy, CEO of Kajy Law, warns that cutting costs the wrong way can leave motorists badly exposed when they need coverage most.
“You have to be very smart when you’re trying to save money in terms of your car insurance premiums because you don’t want to save money and reduce your coverage because if something happens later, you’ll be biting yourself in the butt after,” Kajy said.
Kajy, who handles car accident cases, said he has seen firsthand the consequences of under-insured drivers. One client, he recalled, purchased less coverage to save money, only to face hospital bills that exceeded their policy limits after a serious accident.
Review your policy for unnecessary coverage
Kajy’s first recommendation is simple: read your policy carefully.
“Look at your policy and make sure that there’s no other cars in the policy that you don’t have,” he said.
Kajy noted the issue is more common than people think - he discovered his own policy was still charging him for a vehicle he no longer owned. He said the same principle applies to other insured property, such as jewelry or equipment that may no longer be in a driver’s possession.
Don’t assume bundling is always the better deal
Many insurance companies promote bundling home and auto policies as a money-saving strategy, but Kajy said that is not always the case.
“Bundling can save you money in many instances, but it doesn’t always save you money,” he said.
He advised consumers to obtain separate quotes for home and auto coverage from different insurers and compare them directly against any bundled offer before making a decision.
Consider raising your deductible - carefully
Raising a deductible is one of the most straightforward ways to reduce a monthly premium, but Kajy said drivers need to approach it as a calculated risk.
“If you increase your deductible from, let’s say, $500 to $1,000, that can significantly decrease your premium. You just have to be ready for it if something does happen and you have to pay more out-of-pocket costs,” he said.
Shop around every few months
Kajy said brand loyalty can actually cost drivers money. He recommends shopping for quotes at least every two months.
“You don’t need to be loyal to one insurance company. Rates can creep up over time. You just got to monitor it,” he said, adding that new customers often receive better rates than long-term policyholders at the same company.
Traffic violations carry a steep price
For drivers who receive tickets, Kajy said the financial impact on insurance rates is often underestimated - particularly following Michigan’s 2019 auto insurance reforms, which changed how insurers can calculate premiums.
“Even a 2-point violation can cost you up to 25% on your premium,” he said, recommending that drivers hire an attorney to contest any traffic violations before they affect their policy.
Ask your insurer directly
Perhaps the simplest piece of advice Kajy offered: just ask.
“Call your insurance company and ask them flat out, what sort of discounts do you guys offer? Where can I save money? You might be leaving money on the table,” he said.
Driving school contest
Kajy Law is also sponsoring a weekly scholarship giveaway for a free driving course at Motor City Driving Academy through the end of the year. Metro Detroit teens can enter by click this link. Winners are announced weekly.