Have you finally had enough of scraping the payment together to buy auto insurance? You have the same problem as many other Florida drivers.
It's shocking but the vast majority of auto insurance customers have purchased from the same company for a minimum of four years, and 38% of customers have never compared rates from other carriers. Florida drivers could save themselves approximately 55% a year by just comparing quotes, but they think it's difficult to shop their coverage around.
Multiple insurance companies compete to insure your vehicles, so it can be very hard to choose a insurer to discover the definitive lowest rate on auto insurance.
It is always a good idea to do rate comparisons occasionally because auto insurance prices are rarely the same from one policy term to another. Despite the fact that you may have had the best quotes on auto insurance two years ago you may be paying too much now. There is a lot of wrong information about auto insurance on the internet, but in this article, you're going to get the best ways to find affordable auto insurance in Melbourne.
If you have a current car insurance policy, you will surely be able to find the best rates using the concepts covered in this article. Choosing the most cost-effective car insurance policy in Melbourne is really quite easy. But Florida consumers must know how insurance companies charge you for coverage and take advantage of how the system works.
Best companies for competitive prices in Florida
The companies shown below provide price comparisons in Florida. If the list has multiple companies, we suggest you visit two to three different companies in order to get a fair rate comparison.
|Make, Model, and Trim Level||Annual Policy Premium||6-month Policy Premium||Monthly Premium|
|Chevrolet Equinox LTZ 2WD||$1,402||$701||$117|
|Chevrolet Silverado LTZ Extended Cab 2WD||$1,580||$790||$132|
|Dodge Ram Quad Cab Sport 4WD||$1,482||$741||$124|
|Ford Escape XLT 2WD||$1,092||$546||$91|
|Ford Explorer Eddie Bauer 2WD||$1,238||$619||$103|
|Ford F-150 Lariat King Ranch 4WD||$1,386||$693||$116|
|Ford Focus SE 2-Dr Coupe||$1,404||$702||$117|
|Honda Accord EX-L 2-Dr Coupe||$1,282||$641||$107|
|Honda CR-V LX 4WD||$914||$457||$76|
|Honda Civic LX 2-Dr Coupe||$2,174||$1,087||$181|
|Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr||$1,744||$872||$145|
|Nissan Altima 3.5 SR 4-Dr Sedan||$1,062||$531||$89|
|Toyota Camry XLE||$1,340||$670||$112|
|Toyota Corolla S||$1,770||$885||$148|
|Get Your Own Custom Quote Go|
Prices above based on married male driver age 40, no speeding tickets, no at-fault accidents, $1000 deductibles, and Florida minimum liability limits. Discounts applied include multi-vehicle, safe-driver, homeowner, claim-free, and multi-policy. Table data does not factor in garaging location in Melbourne which can influence coverage prices significantly.
Should you raise deductibles?
The example below shows how choosing a deductible and can change Nissan Altima yearly insurance costs for each different age category. The data is based on a married male driver, full physical damage coverage, and no discounts are applied to the premium.
Nissan Altima rates are for example purposes only. To get rates for your specific vehicle, click here.
Safe drivers pay cheaper rates
The chart below shows how traffic citations and at-fault fender-benders can affect Hyundai Sonata yearly insurance costs for different categories of driver ages. The prices are based on a single male driver, comp and collision included, $1,000 deductibles, and no discounts are applied to the premium.
Hyundai Sonata rates are for example purposes only. To get rates for your specific vehicle, click here.
Seven things that affect your premiums
Many different elements are part of the equation when you get your auto insurance bill. Some are pretty understandable such as your driving history, but some are less apparent like your vehicle usage or how safe your car is. One of the most helpful ways to save on insurance is to to have a grasp of the factors that aid in calculating insurance rates. If you have a feel for what determines base rates, this allows you to make good choices that could help you find much lower annual insurance costs.
The following are a few of the "ingredients" utilized by car insurance companies to help set your premiums.
- Type of car determines base premiums - The type of vehicle you are buying insurance for makes a huge difference in how high your rates are. The cheapest rates are usually found on lower cost passenger vehicles, but there are many factors that impact the final cost.
- If you don't need it don't buy it - Insurance policies have a lot of optional add-on coverages that you can get tricked into buying but may not be useful. Insurance for things like rental car coverage, towing, and additional equipment coverage may be costing you every month. The coverages may be enticing initially, but if you have no use for them remove them and pocket the money.
- Fewer miles means better costs - The higher the miles on your car each year the higher your rate. A lot of companies apply a rate partially by how you use the vehicle. Cars used primarily for pleasure use qualify for better rates than vehicles that are driven to work every day. Double check that your insurance declarations sheet shows the correct usage, because improper ratings can cost you money.
- Bad credit will cost you - Having a bad credit score is a large factor in determining premium rates. People that have excellent credit tend to be more responsible than those with poor credit scores. If your credit history can be improved, you could save money insuring your vehicle if you clean up your credit.
- High deductibles lower prices - Physical damage insurance, aka comp and collision, protects your car from damage. Some instances where coverage would apply are a dented fender, collision with an animal, and having your car stolen. Comp and collision deductibles define how much you are willing to pay if a claim is determined to be covered. The more expense the insured is willing to pay, the less your insurance will be.
- You might want pay the minor policy claims yourself - Insurance companies in Florida generally give the best rates to insureds who only file infrequent claims. If you're an insured who likes to file claims you can definitely plan on either a policy non-renewal or much higher rates. Auto insurance is intended for the large, substantial claims.
- Being married pays dividends - Getting married can get you a discount compared to being single. Having a significant other usually means you are more financially stable and insurance companies reward insureds because married drivers tend to file fewer claims.
Lower rate quotes on auto insurance with these auto insurance discounts
Car insurance companies do not advertise the complete list of policy discounts in a way that's easy to find, so the below list has a few of the more common as well as some of the hidden discounts that you can inquire about if you buy Melbourne auto insurance online.
- Active Military Service - Having a deployed family member could trigger a small discount.
- Online Discount - Certain companies will provide an incentive shop Melbourne auto insurance over the internet.
- Club Memberships - Affiliation with qualifying clubs or civic groups could earn you a nice discount when getting a Melbourne auto insurance quote.
- Melbourne Homeowners Discount - Owning a house in Melbourne can earn you a little savings because owning a home is proof that your finances are in order.
- Use Seat Belts - Buckling up and requiring all passengers to use a seat belt could cut 10% or more off the medical payments premium.
- ABS Brakes - Cars and trucks that have steering control and anti-lock brakes are much safer to drive and the ABS can save up to 10%.
- Telematics Data Discounts - Policyholders that allow companies to monitor driving manner remotely such as In-Drive from State Farm or Allstate's Drivewise system could possibly reduce rates as long as the data is positive.
- Air Bag Discount - Factory options such as air bags or motorized seat belts may get savings of 25 to 30%.
- Accident Forgiveness Coverage - This one is not really a discount per se, but some insurance companies may permit one accident without the usual rate increase if your claims history is clear for a set time period.
- Safe Drivers - Safe drivers can pay as much as 50% less compared to accident prone drivers.
Discounts reduce rates, but you should keep in mind that many deductions do not apply to the overall cost of the policy. Most only apply to the price of certain insurance coverages like comprehensive or collision. So even though they make it sound like you would end up receiving a 100% discount, companies wouldn't make money that way.
Some of the insurance companies who might offer these discounts possibly include:
Check with each company or agent which credits you are entitled to. Some discounts might not be available to policyholders in Melbourne. To see a list of insurance companies with the best discounts in Melbourne, click this link.
Exclusive versus independent auto insurance agents
Certain consumers just prefer to sit down and talk to an agent and that is just fine! The biggest benefit of comparing rates online is that drivers can save money and get lower car insurance rates but also keep your business local. Buying from and supporting neighborhood insurance agencies is important especially in Melbourne.
For easy comparison, once you complete this short form, your insurance coverage information is submitted to agents in your area who want to provide quotes and help you find cheaper coverage. It simplifies rate comparisons since you won't have to contact any insurance agencies due to the fact that quote results will go to your email. You can find better rates without the usual hassles of price shopping. If you need to get a rate quote for a specific company, you can always visit that company's website and fill out the quote form the provide.
Choose the right car insurance agent
When looking for a reputable agency, it can be helpful to understand the different types of agents and how they are slightly different. Agents in Melbourne are either independent or exclusive depending on the company they work for.
Independent Insurance Agents
Independent agencies can quote rates with many companies and that allows them to write policies through lots of different companies and find you the best rates. If they find a cheaper price, they simply move the coverage in-house and you don't have to do anything.
If you are comparing insurance prices, you will want to get quotes from a few independent agents so that you can do a thorough price comparison.
Exclusive Insurance Agencies
These agents generally can only insure with one company like Farmers Insurance, American Family, State Farm and Allstate. Exclusive agencies are unable to give you multiple price quotes so they have no alternatives for high prices. Exclusive insurance agents are well schooled on their products and sales techniques and that can be a competitive advantage.
Finding a good auto insurance agent requires more thought than just a low price. Ask your prospective agent these questions:
- Will you be dealing directly with the agent or with a Custom Service Representative (CSR)?
- Are they primarily personal or commercial lines agents in Melbourne?
- Do they have any clout with companies to ensure a fair claim settlement?
- Is the agency covered by Errors and Omissions coverage?
- Are they in the agency full-time?
- Do the coverages you're quoting properly cover your vehicle?
- How often do they review policy coverages?
- Are there any hidden costs in their price quote and does it include driving and credit history?
Can you really save that much by switching?
Well-known insurance companies like State Farm, Allstate and GEICO regularly use television and radio advertisements. They all seem to make the point that you can save just by moving your policy. But how can every company have lower policy pricing? This is the way they can do it.
Most companies have a certain "appetite" for the type of customer they prefer to insure. For example, a profitable risk profile could possibly be over the age of 45, has a clear driving record, and does not commute to work. Anyone who meets those qualifications will get a cheap rate quote in Melbourne and as a result will probably pay quite a bit less when switching companies.
Potential customers who are not a match for the ideal profile must pay higher premiums which translates to the driver buying from a lower-cost company. If you pay attention, the ads say "customers that switch" not "all people who quote" will save that much if they switch. That's why insurance companies can make those claims.
Because of the profiling, you absolutely need to get price quotes at each policy renewal. It is impossible to guess which insurance companies will have the lowest rate quotes.
You can lower your car insurance rates
In this article, we presented many ways to save on car insurance in Melbourne. The key thing to remember is the more you quote Melbourne auto insurance, the better likelihood of getting low cost Melbourne auto insurance quotes. You may even find the lowest prices are with some of the lesser-known companies. These smaller insurers may only write in your state and offer lower rates compared to the large companies like State Farm, GEICO and Nationwide.
When buying insurance coverage, don't be tempted to reduce needed coverages to save money. In many cases, drivers have reduced liability limits or collision coverage and found out when filing a claim that the savings was not a smart move. Your objective should be to find the BEST coverage at a price you can afford.
More detailed car insurance information is available in these articles:
- Uninsured Motorists: Threats on the Road (Insurance Information Institute)
- If I File a Claim will My Insurance Go Up? (Insurance Information Institute)
- How to Avoid Common Accidents (State Farm)
- Auto Theft Statistics (Insurance Information Institute)
- Eight Auto Insurance Myths (Insurance Information Institute)