How to Know You're Spending Too Much for Auto Insurance in Miami
Expensive auto insurance can overdraw your bank account and force you to prioritize other expenses. Shopping your coverage around is a smart way to make sure you're not throwing money away. Numerous battle for your business, and because of this it can be hard to compare and uncover the absolute lowest price
How much can you save with discounts?
Car insurance companies do not advertise all available discounts in an easy-to-find place, so we researched both well-publicized and the more hidden auto insurance savings. If they aren't giving you every credit you deserve, you are throwing money away.
- More Vehicles More Savings - Buying insurance for multiple cars or trucks on one policy could earn a price break for each car.
- Own a Home - Owning a home in Miami may trigger a auto insurance policy discount because of the fact that having a home shows financial diligence.
- No Accidents - Drivers who don't have accidents pay much less when compared with drivers who are more careless.
- Clubs and Organizations - Participating in certain professional organizations could qualify you for a break when buying auto insurance.
- Defensive Driving Course - Taking part in a course in driver safety could cut 5% off your bill if you qualify.
It's important to note that most of the big mark downs will not be given to all coverage premiums. Most only cut the cost of specific coverages such as physical damage coverage or medical payments. Just because it seems like all those discounts means the company will pay you, you're out of luck.
Miami Rates are Influenced by These Factors
Smart consumers have a good feel for some of the elements that come into play when calculating the price you pay for auto insurance. Understanding what influences your rates enables informed choices that could result in big savings.
- Liability insurance protects assets - The liability section of your policy is the protection if a court rules you are at fault for causing damage or personal injury in an accident. It provides legal defense which can cost thousands of dollars. Carrying liability coverage is mandatory and cheap compared to insuring for physical damage coverage, so buy as much as you can afford.
- High deductibles save money - Your deductibles represent how much money you are required to spend out-of-pocket before a claim is paid by your company. Physical damage insurance, commonly called comprehensive (or other-than-collision) and collision coverage, protects your car from damage. Some instances where coverage would apply could be colliding with a building, vandalism, and burglary. The more you are required to pay out-of-pocket, the bigger discount you will receive.
- Rates may be higher depending on your occupation - Occupations such as judges, architects and accountants tend to have higher rates than average attributed to high stress and lots of time spent at work. On the flip side, occupations like pilots, athletes and the unemployed receive lower rates.
- Little extras can really add up - There are a lot of add-on coverages that you can get tricked into buying on your auto insurance policy. Coverages like vanishing deductibles, accidental death and term life insurance are examples of these. These coverages may sound good at first, but if they're wasting money get rid of them and save.
- Multi-policy discounts can save money - The majority of companies will award you with lower prices to customers who have multiple policies with them. It's known as a multi-policy discount. Discounts can amount to anywhere from five to ten percent in most cases. Even with this discount, you may still want to compare other company rates to ensure the best deal.
- High numbers of claims are not good - Auto insurance companies in Florida provide better rates to drivers who are claim-free. If you file claims often, you can pretty much guarantee higher rates. Insurance coverage is designed for the bigger claims that can't be paid out-of-pocket.
Save 15 percent in 15 minutes? Is it for real?
Florida consumers get pounded daily by advertisements for car insurance savings by Allstate, GEICO and Progressive. All the companies say the same thing that you can save if you move to their company.
How do they all make almost identical claims?
All the different companies have a preferred profile for the driver that earns them a profit. For instance, a profitable customer could possibly be a mature driver, insures multiple vehicles, and chooses high deductibles. A driver who fits that profile will qualify for the lowest rates and is almost guaranteed to cut their rates substantially.
Drivers who don't meet the "perfect" profile must pay a higher premium which usually ends up with the driver buying from a lower-cost company. The ad wording is "people who switch" but not "drivers who get quotes" save that much. This is how insurance companies can state the savings. This illustrates why drivers should compare as many rates as you can. It is impossible to predict which insurance companies will give you the biggest savings.
For more Florida auto insurance information
Additional detailed information is located at the Florida Office of Insurance Regulation website. Florida consumers can find out which companies have the most complaints, report car insurance fraud, read industry bulletins, and discover disciplinary actions.
Best coverage at the best price
Lower-priced auto insurance is definitely available online and also from your neighborhood Miami agents, and you need to price shop both to have the best selection. Some insurance companies may not provide you the ability to get quotes online and usually these small, regional companies provide coverage only through local independent agents.
When buying insurance coverage, never skimp on coverage in order to save money. In too many instances, drivers have reduced liability coverage limits only to discover later that their decision to reduce coverage ended up costing them more. Your focus should be to purchase a proper amount of coverage at an affordable rate while not skimping on critical coverages.