Saturday, June 15, 2013

Auto Insurance in Miami - Basics

Seeking out auto insurance in Miami is an easier task than you may think. You have a great deal of power in choosing your own insurance and many resources are available to gather information and find ways to save. This article is one such resource, so take a few moments to read through it to gather more information in your quest for the best deal on Miami auto insurance.

Minimum Requirements for Auto Insurance in Miami

Miami residents must adhere to the state of Florida minimum requirements for car insurance. The state of Florida has some of the lowest minimum requirements for car insurance in the nation. All that is required of drivers is to have vehicles covered with Personal Injury Protection insurance with a limit of $10,000 and Property Damage Liability also with a $10,000 limit. There are no mandatory requirements for bodily injury liability as with most other states. Although, some drivers, once they have been in an accident, may face a court order to purchase bodily injury liability. It is recommended to carry some amount of bodily injury liability, even if it is not required, to protect you from accident liability and lawsuit.

The Cost of Auto Insurance in Miami

When shopping for auto insurance in Miami, you will need to keep in mind that you are going to be paying a bit more for coverage. Auto insurance is more costly in large urban areas where the cost of living is higher, theft and vandalism rates are higher, and traffic congestion leads to more accidents. For example, in the city of Miami, there are 23 accidents per year per 1,000 residents, putting it at the top of the list for Florida. Also, there were nearly 4,000 vehicle thefts in Miami in 2009, tops in the state.

Florida, overall, is just above the national average when it comes to car insurance premiums, with Miami at the top of the list for highest average cost of insurance in the state. You do have room for savings, however, by managing your risk factors, seeking out discounts and shopping around for the best rates.

Details About Auto Insurance

Auto insurance is the insurance acquired for cars, motor bikes, trucks, as well as other forms of vehicles with the main purpose of providing financial coverage against almost any damage or even bodily injuries caused by a traffic accident, and against the liability which might come about.

The particular auto insurance terms fluctuate with the legal regulations in just about every state. To a smaller degree, auto insurance could offer financial protection against car theft and possible damage occurred to the automobile whether criminal or not.

In most states, car insurance is actually compulsory for every single car owner just before they keep or make use of their car on the roads. There are several states which are experimenting with the pay-as-you-drive plan which is paid directly into the fuel tax.

It deals with the problems of the uninsured motorists, and a cost based on kilometers or miles driven that may improve the insurance efficiency in theory by means of the efficient collection. There tend to be various public regulations implemented in each and every nation and wherever you go, you must examine the implemented laws for auto insurance before you start out driving.

Every vehicle owner knows about car insurance, or at least has a bit of information about it. There tend to be numerous aspects to take into account just before you eventually have your automobile insured.

The initial step to understanding vehicle insurance policies is by understanding the different kinds of car insurance coverage that every insurance company provides. Some of the coverage may end up being demanded by your state, and other coverage extras might end up being optionally available.

Insurance coverage is normally composed of comprehensive, medical coverage, uninsured motorist, PIP, and various other pieces and parts. Most insurance coverage is really a blend of most of these coverage varieties.

In order to determine your insurance needs, you will need to think about a handful of details.

The initial step in picking out the insurance you need for your automobile should be to determine the laws and regulations in your state. It will help you discover the minimum auto insurance you need. However, you may furthermore need to look at your your auto insurance requirements.

The truth is a lot of drivers get far more coverage than exactly what their state requires for them to have for basic coverage. Knowing your own state regulations, options, amount of money you need to spend, your automobile, and other insurances you have may go a long way in making sure you do not overpay.

Auto Insurance at the Pump

Let me explain the coverages to you and then you can decide if you are paying too much for your insurance. Your Liability coverage which is required by law pays the other people in the other car or cars if you got into an accident and found to be at fault. The Collision coverage will pay for the damages done to your car whether you are at fault or not.

In essence you are saying to the Insurance Company," Mr. Insurance Company I am going to pay you every month to fix my car in case it gets damaged even if I am at fault". You both will agree on terms and sign a contract.

Comprehensive coverage (Fire and Theft) will cover your car for anything other than a collision like if it was stolen, caught fire, vandalized etc. There are other coverages in between these that pay for medical payments, loss of income etc.

For now we will just talk about these three coverages in a broad sense and take a look at how much the Insurance Companies remain capitalized in order to pay its claims.

Why Insurance?

Take it from me you don't want to be driving without insurance and you want to be sure that the other drivers are also insured, why? Because if you are hit by another vehicle and you suffer any kind of bodily injury and have to be hospitalized or lost income by not being able to work, you want to have some peace of mind knowing that there is money coming from somewhere to pay your bills as well as for your everyday living expense.

Let's face it, this is not always going to be the case because of how the insurance system is set up, follow me here now. By law you must carry Liability Insurance on your vehicle to be on the road legally. Remember this is the coverage that will pay for hitting another vehicle.

Here is the fact though, you can only hit another vehicle if your vehicle is moving and unless being pushed it will only move if being driven. You and I know that we can't drive this vehicle unless fuel in the tank.

So if you park your car in your garage, lock the door and went away on a two week vacation or a long awaited cruise for a month, why should you pay the liability insurance when the car is not being driven? Is there something wrong with that? Yet removing the coverage and reinstating it when you are back from vacation you are charged a penalty for not being insured. You could even have your license suspended.

Let's say you bought a new car and financed it through the bank, the bank technically owns the car until you have completely paid the loan and so they can and usually insist that you carry Collision coverage in case it was damaged in an accident or worst if accident was so bad it was a total loss.

Pay at the Pump.

Though I agree with that remember you can't have a collision if your car is not moving and it can only move if there is fuel in the tank, do you agree? So here is my theory, if the use of either of these coverages (Liability and Collision) is impossible without movement and movement depends on fuel shouldn't your payment be tied to fuel? What better way to do so than to include the charge in the price at the pump. By doing so you solve the problem and possibility of having uninsured drivers on the road.