If you’re a driver in Miami, you understand how expensive it can be to insure your car. Doing your research to find the most affordable insurance option that meets your coverage needs is an important part of being a responsible car owner. This guide can help you compare the leading insurance providers to find cheap car insurance in Miami based on their average annual premiums. Let’s look at the most affordable auto insurance options in Miami with consideration for level of coverage, driver experience, and accident history.
Cheapest Provider for Minimum Coverage
A minimum coverage policy is typically the cheapest insurance option available to drivers. This level of coverage offers the bare essentials of insurance coverage for drivers, and the minimum coverage requirements for drivers vary by state. In Florida, drivers need to have a policy that covers $10,000 in property damage per accident and $10,000 in personal injury protection per person. Note that the minimum coverage requirements for drivers in Florida exclude coverage for any damages incurred to your vehicle. This means that you may end up spending more in the long term by opting for minimum coverage.
Although drivers may end up spending more if their vehicle sustains damage because of an accident, natural disaster, or other cause, minimum coverage is the most affordable option for most drivers. In Miami, the cheapest insurance provider for minimum coverage is Geico. This provider has an average annual premium of $1,501 for minimum coverage. The second cheapest option is State Farm, which has an average premium of $3,110, followed by Direct General at $3,336. Choosing a minimum coverage policy may be a good option if you don’t drive a new car, or if your car is worth less than $3,000.
Cheapest Provider for Full Coverage
Full coverage refers to an insurance policy that covers the minimum liability requirements and includes comprehensive and collision coverage. Here’s what comprehensive and collision coverage include:
- Comprehensive coverage: This type of insurance coverage protects you from damages your vehicle sustains due to circumstances beyond your control. For example, this type of coverage includes protection from theft, natural disasters, vandalism, and falling objects that may damage your car.
- Collision coverage: Collision coverage protects your finances in the event of a collision-based accident. Common examples of collision-based accidents include running into a car, another object, or being involved in a hit-and-run.
Geico also offers the most affordable option for full coverage insurance among the leading insurance providers. The average annual premium for drivers with full coverage through Geico is $2,166. By comparison, the next cheapest option is State Farm at $4,167, followed by Direct General at $4,502. Compared to the minimum coverage plan, it costs $665 more for Geico’s full coverage plan, which makes this option appealing for drivers who own new vehicles or have a car worth more than $3,000. Full coverage may save you more over time if your vehicle sustains damages due to a collision or other event.
Cheapest Provider for Inexperienced Drivers
It can be significantly more expensive to purchase insurance for an inexperienced driver. Young or new drivers are more likely to be involved in accidents or traffic violations for a variety of reasons, including inexperience. For these reasons, it can be more costly for companies to insure younger drivers, and they offset these costs by increasing the expense of their policies for new drivers.
For inexperienced drivers in Miami, the cheapest option is Geico, which has an average annual premium of $4,262 for 18-year-old drivers. The second-cheapest option is Direct General, at $6,654, and the third cheapest is State Farm, at $7,847. Choosing the most affordable option for young drivers can be difficult, especially for those with a limited budget. Fortunately, there are some options to help you reduce the cost of insurance for younger drivers. Here are some tips for getting a better deal on insurance as an inexperienced driver:
- Look for discounts: Contact the insurance providers or look for third-party options to get discounts on your policy. For example, some insurance companies offer discounts for young drivers who complete a defensive driving course or equip their vehicles with additional safety gear.
- Bundle your package with a family member: A great way to reduce the expense of insuring a young driver is to combine their policy with another family member’s. Combining policies means you won’t be paying for two separate policies, and you can get a better rate by bundling policies with a family member who’s an experienced driver with a positive driving history.
- Research small insurance providers: Although this guide looks at major insurance providers, consider shopping around with small, local companies. Some small companies may offer competitive rates.
Cheapest Provider for Drivers with Accident Histories
If you have traffic violations or an accident history, it can significantly affect the cost of your insurance. When comparing companies, it’s important to consider how much your provider is likely to increase your premium, in addition to knowing the final price of your package. When compared, State Farm increased the cost of their premium the least after an accident, but Geico still offered the cheapest option for drivers with an accident history. With State Farm, the average pre-accident rate is $4,167, and the post-accident rate is $4,990, meaning there is an $823 increase.
By comparison, the pre-accident rate for Geico users is $2,166. This rate increases by $996 for a post-accident rate of $3,162. Direct General represents the third-cheapest option. The pre-accident average for drivers with Direct General is $4,502, and the post-accident rate is $6,081. This is a significant increase of $1,579 for drivers post-accident.
There are many factors to consider when choosing the right insurance coverage policy for your needs. The best way to make sure you’re getting the value you need from your policy at the price that fits your budget is to get a personalized quote from several providers. This allows you to compare the rates equally based on your individual profile.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.