The recent report about the expected decline of auto insurance costs in Miami due to the law against ‘no-fault’ fraud is something the city’s drivers should be happy about, especially considering the results of NerdWallet’s latest study. In the website’s list of Most Expensive Cities for Car Insurance, Miami ranked 9th with an average annual premium of $3,168.75.
Such amount is considerable, but you need not leave Miami or file bankruptcy to save money on car insurance. You can effectively reduce your auto insurance costs even while living in the city by doing the following:
Choose your car carefully. Your choice of car is a major factor that determines how much insurance you are going to pay. Some vehicles are more expensive to insure than others. Those that have higher maintenance and repair costs and have higher risk for accidents, such as sports cars, come with more expensive insurance. High profile cars, or those that are favored by thieves, are also more costly to insure. Before you settle on a car, find out the cost of insuring it.
Ensure car safety. Buying a car with a high safety rating will allow you to lower your car insurance expenses. You can save even more if you invest in safety options. Adding the likes of anti-lock brakes, anti-theft devices like alarm systems, and passenger-seat airbags can help you get a lower rate.
Raise the deductible. This is one surefire way to significantly reduce your insurance premium because the deductible you set greatly influences how much premium you will pay. The deductible is the amount you will pay out of pocket before the insurer pays. The higher the deductible, the lower your annual premium. Before you increase your deductible, make sure you can afford to pay more. Also, ask your insurer how increasing your deductible will impact your premium.
Bundle policies. Opt for one insurance provider for all your insurance policies (car, home, etc.) to avail a 10 percent discount off your total premium. 10 percent may not seem like much, but it can mean lots of savings over time.
Drive cautiously. If you want to save on premiums, drive carefully. Driver behavior also influences your insurance costs. Insurance companies consider your driving record when determining your rate, which means traffic violations you have committed or accidents you have been involved with in the past will increase your premium. Know that while some insurers look back three years, others consider your record for the past five years or more.
Reduce coverage if possible. You may do without collision coverage if your vehicle is old and paid in full. Collision coverage covers damages you cause on your automobile. Eliminate the coverage if the claim will be less than the amount of the deductible or insurance policy.
Cut your mileage. Driving less means paying less auto insurance. If you are rarely on the road, you are less likely to be involved in an accident. Some insurance companies offer discounts to individuals who drive less, so inform your insurer about your low mileage. You may even consider signing up for one of the pay-by-the-mile programs, which is bound to further lower your insurance costs.
Pay the premium in full. You can spend less on car insurance if you pay your annual premium in full rather than paying it on a monthly basis. Most auto insurance providers charge a fee to divide your annual premium into monthly installments. The more installments there are, the higher the fees you are going to pay. Those fees can add up and make what could have been affordable insurance costly. Don’t worry about losing the lump sum if you decide to switch insurers—insurers are required to pro-rate the total bill and refund policyholders for the days they weren’t covered under them.