How to Know You’re Wasting Money for Auto Insurance in Homestead

Did you fall for a flashy sales pitch and buy an underperforming, overpriced auto insurance policy? Trust us, you’re not the only one.

You have so many insurance companies to buy insurance from, and even though it’s nice to be able to choose, so many choices can make it hard to compare rates.

Finding the best rates in Homestead is quite easy. In a nutshell, everyone who is required by state law to have auto insurance will more than likely be able to lower their premiums. But Florida drivers need to learn how big insurance companies sell insurance online and take advantage of how the system works.

Take discounts and save

Companies that sell car insurance don’t always publicize all available discounts in an easy-to-find place, so we break down both well-publicized and the more hidden savings tricks you should be using.

  • Auto/Home Discount – When you have multiple policies with the same insurance company you could get a discount of at least 10% off all policies.
  • Drive Less and Save – Driving fewer miles could be rewarded with lower rates on the low mileage vehicles.
  • Federal Government Employee – Simply working for the federal government may qualify you for a discount with select insurance companies.
  • Discounts for Safe Drivers – Drivers who avoid accidents can get discounts for up to 45% lower rates than less cautious drivers.
  • Anti-lock Brake System – Vehicles with anti-lock braking systems can avoid accidents and qualify for as much as a 10% discount.
  • Homeowners Savings – Owning a house in Homestead may trigger a auto insurance policy discount because owning a home is proof that your finances are in order.
  • Memberships – Participating in a civic or occupational organization is a good way to get lower rates when shopping for auto insurance.
  • Multiple Cars – Buying coverage for all your vehicles on one policy may reduce the rate for each vehicle.
  • Save with a New Car – Putting insurance coverage on a new car can save up to 30% compared to insuring an older model.
  • Save over 55 – If you qualify as a senior citizen, you may be able to get a small decrease in premiums.

As a disclaimer on discounts, most credits do not apply to the overall cost of the policy. Some only apply to individual premiums such as medical payments or collision. So even though they make it sound like adding up those discounts means a free policy, you won’t be that lucky.

Decisions you make can impact your rates

Smart consumers have a good feel for the different types of things that help determine your auto insurance rates. Having a good understanding of what determines base rates allows you to make educated decisions that can help you get better auto insurance rates.

  • Liability coverage is peace of mind – Liability coverage provides coverage in the event that you are found liable for causing damage or personal injury in an accident. Liability provides legal defense coverage starting from day one. Liability is cheap when compared with rates for comp and collision, so drivers should carry high limits.
  • Save money with special equipment – Owning a car that has an advanced theft prevention system can help bring down rates. Theft prevention devices such as GM’s OnStar, tamper alarm systems and vehicle immobilizers can help prevent auto theft.
  • Please use or commuting – The more miles you rack up on your car every year the more you will pay for auto insurance. Most insurance companies price each vehicle’s coverage based upon how you use the vehicle. Cars and trucks left parked in the garage receive lower rates compared to those used for work or business. Make sure your auto insurance policy is showing how each vehicle is driven, because improper ratings can cost you money.
  • How’s your driving record? – Good drivers have lower premiums compared to drivers with tickets. Only having one citation can increase rates by as much as thirty percent. Drivers with flagrant tickets like DWI, reckless driving or hit and run convictions are required to file a SR-22 to the state department of motor vehicles in order to keep their license.
  • Lower rates come with age – Older drivers tend to be more responsible, tend to file fewer claims and receive fewer citations. Young drivers are statistically proven to be more careless behind the wheel and because of this, their auto insurance rates are much higher.
  • Men fork out a little more – Statistics have proven that men are more aggressive behind the wheel. That doesn’t necessarily mean that women are better drivers. Both sexes have accidents at about the same rate, but the men cause more damage. Men also statistically get more serious tickets like reckless driving and DUI. Male drivers age 16 to 19 tend to get in the most accidents and are penalized with high auto insurance rates.
  • Never let your coverage lapse – Allowing your coverage to lapse is a guaranteed way to increase your auto insurance rates. Not only will you pay more, but being ticketed for driving with no insurance may earn you a steep fine or even jail time.Then you may be required to file a SR-22 with the Florida DMV.

Don’t I need to talk to an agent?

Certain consumers would rather buy from a local agent and that is just fine! One of the best bonuses of comparing rates online is the fact that you can find better rates and still choose a local agent.

After filling out this form (opens in new window), your insurance data is sent to local insurance agents in Homestead who will compete for your insurance coverage. You don’t have to even leave your home because quoted prices will be sent to the email address you provide. It doesn’t get any easier! You can find the lowest rates and work with a local agent.

Selecting an insurer shouldn’t rely on just a low price. Here are some questions to ask:

  • What insurance companies do they recommend if they are an independent agent?
  • How much will you save each year by using a higher deductible?
  • If your car is totalled, how to they determine the replacement cost?
  • Which insurance companies are they affiliated with?
  • Do they have any clout with companies to ensure a fair claim settlement?
  • Which members of your family are coverage by the policy?

Insurance agents in Homestead come in two varieties

When finding local Homestead agents, there are two different agency structures from which to choose. Agencies in Homestead are classified as either independent or captive.

Captive Agents

This type of agents work for only one company and some examples include Allstate, Farmers Insurance or State Farm. These agents are not able to place coverage with different providers so always compare other rates. Captive agencies receive extensive training in insurance sales which helps them compete with independent agents.

Listed below are Homestead captive insurance agencies who can help you get comparison quotes.

Farm Bureau Insurance – 1850 Old Dixie Hwy – Homestead, FL 33033 – (305) 247-4644
Allstate Insurance – 125 NE 8th St # 7 – Homestead, FL 33030 – (305) 245-8488

Independent Agencies or Brokers

Independent insurance agents do not work for one specific company but rather can write business with lots of companies and potentially find a lower price. To transfer your coverage to a different company, your agent can switch companies and that require little work on your part. When shopping rates, we recommend you contact at a minimum one independent agency to have the most options to choose from.

Below is a list of independent insurance agencies in Homestead who can help you get comparison quotes.

Buy Smart Insurance Inc – 120 N Homestead Blvd – Homestead, FL 33030 – (305) 246-2114
All-Motors Assurance Agency – 11 Palm Plz – Homestead, FL 33030 – (305) 247-3505
First State Insurance – 1990 NE 8th St – Homestead, FL 33033 – (786) 243-9886
South Dade Auto Tag Agency – 30708 S Dixie Hwy – Homestead, FL 33030 – (305) 247-2731

For a full directory of licensed insurance agents in Homestead, please view this page.

Once you have received positive feedback to these questions and a good coverage price, you’ve probably found an insurance agency that is a good match to properly insure your vehicles.

Do drivers who switch really save?

Auto insurance companies such as Progressive, Allstate and Geico continually stream ads on TV and radio. They all seem to say the same thing that you can save after switching to their company. But how can every company claim to save you money?

All the different companies are able to cherry pick for the type of driver that earns them a profit. An example of a desirable insured could possibly be over the age of 40, is a homeowner, and drives less than 10,000 miles a year. A customer who matches those parameters will qualify for the lowest rates and most likely will save when switching.

Drivers who don’t meet the requirements will be charged a more expensive rate and ends up with business going elsewhere. Company advertisements say “customers that switch” not “people who quote” save money. That’s the way insurance companies can confidently make those claims. That is why you should get as many comparisons as possible. It’s just too difficult to predict which company will give you the biggest savings.

More detailed Florida auto insurance information is available at the Florida Office of Insurance Regulation website. Consumers can report car insurance fraud, download brochures, learn about specific coverages, and file complaints about an insurance agent or broker.

A tidy conclusion

While you’re price shopping online, it’s a bad idea to skimp on critical coverages to save a buck or two. In many cases, drivers have reduced full coverage and learned later they didn’t purchase enough coverage. The aim is to buy the best coverage you can find for the lowest price.

Low-cost auto insurance is available on the web as well as from independent agents in Homestead, so you should be comparing quotes from both to have the best selection. A few companies don’t offer online quoting and these small, regional companies work with independent agents.