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Miami FL – Cheap Car Insurance – Affordable Options

Get Affordable Car Insurance In Miami

we can help imageIn this article, I’m going to share how you can find cheap auto insurance in Miami FL. Securing affordable insurance is not that difficult at all. However, the biggest challenge is obtaining auto insurance that will adequately cover you when you truly need it. I can point you to a number of insurance companies that will write a policy for whatever low rate you want to pay.  The problem is that the policy you get won’t be worth the paper it’s written on. You don’t want that.

Your goal should be to find the cheapest “good value” policy that is backed by a quality company with a solid reputation. I’m going to help you achieve your goal by explaining how insurance companies work, the most popular coverages, and how to shop smartly. After reading this article,  you’ll be in a much better position than the average person to buy the cheapest car insurance in Miami that will allow you to sleep comfortably at night.

Understanding Insurance Companies

The first step to finding inexpensive auto insurance is to understand what an insurance company is and why they exist.

What’s An Insurance Company

An insurance company is a legal entity that agrees to take on the risk of another party (You) in exchange for an ongoing fee. In your case, this fee is called a premium. The risk that the insurance company backs is the potential damage to property or personal injury you might cause as a result of an accident. If an accident occurs, the insurance company pledges to fund the full cost up to the amounts agreed to in the policy.

Why Insurance Companies Exist

Perhaps your perception of an insurance company is that it’s a knight in shining armor that will come to your rescue in the event of trouble. That is true to a certain extent. But insurance companies are primarily in business to make money — a profit. And the most important group of people they are concerned about is their shareholders, also known as stockholders. Now, I’m not suggesting this is a bad thing, it’s just the way the industry currently operates.

What this also means is that you should approach the process of buying the cheapest auto insurance with a degree of objectivity and seriousness. A great number of people simply grab any policy that makes them feel good. But in reality, the policy you choose should be a business decision based on cold hard facts, such as your net worth and other tangible factors.

lady serious about insurance

5 Key Factors To Weigh When Evaluating Cheap Auto Insurance In Miami

1. Minimum Coverage

In an effort to save money, there is always a temptation to just get the absolute minimum coverage required by law. For example, here in Florida, all you need to tag and register your vehicle are minimum amounts of Personal Injury Protection (PIP) and Property Damage Liability (PDL) insurance. In some cases, this is adequate. But I think most people will want a bit more protection.

2. Expanded or Full Coverage

If your car still carries a certain amount of value or you possess other assets you wouldn’t want to lose, then you should consider additional insurance coverage. Options such as Collision and Comprehensive coverage limits can be set to your preferences to keep you within budget, while offering critical protection. And believe it or not, you can get cheap insurance that provides extra coverage without breaking the bank.

3. Risk Components

It should come as no surprise that insurance companies use a variety of risk factors to determine the rate or premium you’ll pay for your car insurance. For example, if you’re under 25 years of age, you’re going to get hit the hardest. But other factors include vehicle type and age, city, driving record, tickets, etc. So depending on your risk profile, there could be additional savings to be had (or lost).

4. Policy Quality

Did you know that there are thousands of car insurance companies? And the policies they write will vary widely. Each company has its own risk formulas and profit motives. So the premiums and plans will differ. One company could offer a policy that provides a lot more coverage at a lesser price than another company. So, just like buying a car, it’s important to compare prices, features, and conditions when searching for cheap car insurance.

5. Agents Vs Brokers Vs Insurance companies

Policies for car insurance can be offered by agents, brokers, or directly by insurance companies. Agents and brokers are paid commissions on the policies they sell. The one to primarily watch out for is brokers. Typically, a broker has to write policies through a General Agent of the insurance company. Not always, but this could translate into higher policy premiums because commissions will be split between the agent and the broker. Also, be especially wary of brokers who sell policies as a sideline business.

In conclusion, the best way to find cheap auto insurance in Miami, Florida is to fully understand what you’re up against and then make your decision based on objective criteria. Keep in mind the primary objectives of the insurance company. Then base your buying decision on the five key factors: minimum coverage, expanded coverage, risk components, policy quality, and dealing with agents vs brokers and insurance companies.

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