How to Know You're Spending Too Much for Auto Insurance in Miami

Expensive auto insurance can dwindle your checking account and make it impossible to make ends meet. Shopping your coverage around is a great way to reduce premiums and put more money in your pocket.

You have multiple to pick from, and although it's a good thing to have multiple companies, having more makes it harder to compare rates.

It's important to do rate comparisons quite often because prices are constantly changing. Even if you got the lowest price on your last policy a different company probably has better rates today. Don't believe everything you read about auto insurance on the internet, so I'm going to show you some great ways to find cheap auto insurance.

Save big with these discounts

Companies offering auto insurance don't list all their discounts very clearly, so we researched both well-publicized and the more hidden discounts you could be receiving.

  • College Student - Youth drivers who are attending college and do not have access to a covered vehicle may qualify for this discount.
  • Life Insurance Discount - Some companies give a discount if you purchase a life insurance policy as well.
  • Multiple Vehicles - Insuring multiple vehicles on one policy could earn a price break for each car.
  • Anti-theft Discount - Vehicles with anti-theft systems prevent vehicle theft and qualify for as much as a 10% discount.
  • Drive Less and Save - Fewer annual miles could be rewarded with a substantially lower rate.

It's important to note that some of the credits will not apply to the overall cost of the policy. Most only apply to the cost of specific coverages such as liability, collision or medical payments. So even though they make it sound like you can get free auto insurance, you're out of luck.

Miami auto insurance comparison

Why some people pay less for insurance in Miami

Smart consumers have a good feel for the factors that help determine the price you pay for auto insurance. Knowing what influences your rates allows you to make educated decisions that may reward you with lower auto insurance prices.

The following are a partial list of the pieces companies use to determine rates.

  • Older drivers pay less - Teen drivers in Arizona are known to be more careless when driving so they pay higher auto insurance rates. Adding a teen driver to your policy can break the bank. More mature drivers are viewed as being more responsible, tend to file fewer claims and receive fewer citations.
  • Rural vs Urban Areas - Residing in a rural area can be a good thing when insuring your vehicles. Urban drivers tend to have much more traffic and longer commute times. Fewer drivers means fewer accidents as well as less vandalism and auto theft.
  • Increase deductibles and save - Coverage for physical damage, commonly called comprehensive (or other-than-collision) and collision coverage, is used to repair damage to your car. Examples of covered claims could be colliding with a building, damage caused by hail, and windstorm damage. The deductibles are how much you are required to spend if you file a covered claim. The more you're willing to pay, the bigger discount you will receive.
  • More than one policy can earn a discount - Many insurance companies will give a discount to customers who carry more than one policy in the form of a multi-policy discount. Even with this discount, you may still want to compare other company rates to make sure you are getting the best deal.
  • Higher safety ratings means cheaper insurance - Cars with high safety ratings get lower rates. These vehicles result in less severe injuries and lower injury rates translates into savings for insurance companies and thus lower rates.

But I don't know anything about car insurance

When it comes to buying the best auto insurance coverage for your personal vehicles, there isn't really a cookie cutter policy. Each situation is unique and your policy should reflect that. These are some specific questions may help you determine if your situation could use an agent's help.

  • Why does it cost so much to insure a teen driver in Miami?
  • Do I pay less if my vehicle is kept in my garage?
  • When does my teenage driver need to be added to my policy?
  • What happens if I owe more than my vehicle is worth?
  • Am I covered when driving on a suspended license?
  • Does my personal auto insurance policy cover using my vehicle for business use?
  • Is my dog or cat covered if injured in an accident?
  • Is my cargo covered for damage or theft?

If you can't answer these questions but you think they might apply to your situation, you may need to chat with an agent. To find lower rates from a local agent, complete this form or you can go here for a list of companies in your area.

Auto insurance ads bend the truth

Auto insurance companies such as Progressive, GEICO, Allstate and State Farm continually stream ads on TV and radio. They all seem to have a common claim that you can save after switching to them. How does each company make almost identical claims?

All companies have a preferred profile for the type of driver that earns them a profit. For instance, a desirable insured could possibly be over the age of 40, insures multiple vehicles, and has great credit. A customer getting a price quote that hits that "sweet spot" is entitled to the best price and most likely will save when switching.

Potential insureds who fall outside these standards will have to pay more money and this can result in the driver buying from a lower-cost company. The ads state "people who switch" not "people who quote" save money. This is how insurance companies can advertise the savings. Because of the profiling, drivers should get as many quotes as possible. It's impossible to know which insurance companies will fit your personal profile best.

Additional detailed information is located at the Arizona Department of Insurance website. Arizona consumers can read enforcement actions against agents and companies, view agent and company licensing information, report car insurance fraud, and read consumer alerts.

Also read more on this Car Insurance FAQ and this page of insurance agents in Miami.

Miami auto insurance comparison

Do the work, save more money

When you buy insurance online, make sure you don't skimp on coverage in order to save money. There are many occasions where drivers have reduced collision coverage and learned later that the few dollars in savings costed them thousands. Your aim should be to buy a smart amount of coverage at an affordable rate.

Lower-priced auto insurance can be purchased online and with local Miami insurance agents, and you need to comparison shop both in order to have the best chance of saving money. There are still a few companies who do not offer you the ability to get quotes online and most of the time these small, regional companies sell through independent agents.