Insurable Interest

by: Eric Wagaman

A common question that is often brought up when I am sitting down with an insured or prospect is none other than, “how can you save us money?” As a recent college graduate, I can fully understand saving every penny when possible and maximizing your income. Auto insurance in Michigan can be rather expensive. Why not try to save money where you can? If price is your driving factor in determining the insurance you choose, then this is written for you.

Raise Your Deductible

The deductible can play a big role in the cost of your premium. Typically, the lower the deductible will lead to a higher premium. So inversely, raising your deductible can in turn lower the total cost. Although, when you raise your deductible, you are taking on more of the risk in the event of a loss.

Remove Collision

Collision coverage is in place for when your vehicle collides with another vehicle or object whether you are moving or not. Seems like a pretty valuable coverage, right? For example, if you were involved in a collision and your 1981 Honda is totalled, how much would you actually be covered for if you had collision coverage? This would pay out on an actual cash value basis which is the depreciation of the vehicle subtracted by the replacement cost. I know what you’re thinking, “It’s an ‘81 Honda, how dare you,” but if the vehicle isn’t worth a whole lot, is it worth carrying collision on the vehicle? That depends entirely on the amount of risk you personally would want to retain in the event of a loss.

Kick the Kids Off

Is your child out of college but still living in your home? An easy way you could save some money on your auto insurance could be to move your kids to their own auto policy. Young drivers could potentially hike up the price of your policy.


There are several discounts available that can save you small, or even significant, amounts on your premium, depending on your insurance carrier. There can be discounts for being a member of a credit union, alumni association, and more! To make the discount even greater, there is always the multi-policy discount available as well, depending on the insurance carrier.

Whether you are looking to save money or are shopping for insurance, keep these money saving tips in mind. For a visual approach to saving money on auto insurance, check out “6 Tips to Save on Auto Insurance,” by Aaron Whitaker.


About the Author: Read Eric’s other posts
Eric WagamanEric joined Whitaker-LaChance in 2016 as a Brand Marketing and Development Intern and is a licensed property and casualty producer. He graduated in 2017 from Western Michigan University in their nationally ranked Sales and Business Marketing program. Eric manages all personal insurance placement, marketing, account service and claim management. He is a driven individual who is passionate about meeting the needs of others by going beyond their expectations. During his free time, Eric enjoys golfing, being active, attending sporting events, camping and indulging in new restaurants.