If you are renting your home, your car insurance is not as cheap as it could be. According to the nonprofit Consumer Federation America, cheaper car insurance is available to homeowners. Their recent analysis showed that major auto insurance companies charge even good drivers as much as 47 percent more for basic car insurance if they do not own a home. Buying a home could have some unexpected payoffs for you!
“For example, Allstate charged renters in Tampa 19 percent more than it charged homeowners; Liberty Mutual charged Baltimore renters 23 percent more and 26 percent more in Newark; and Farmers Insurance charged renters in Louisville 47 percent more ($768) than homeowners for a basic auto insurance policy,” according to CFA.
An article by Florida Realtors says that the CFA found that premiums averaged seven percent higher – about $112 per year – for people who rent rather than own. The CFA also criticizes the higher auto rate charged to renters, because many are low- and moderate-income Americans. According to Federal Reserve Board, the median income of renters in the U.S. was $27,800 in 2013 compared with $63,400 for homeowners.
“A good driver is a good driver whether she rents or owns her home,” says J. Robert Hunter, CFA’s insurance director.
While for many it may not be simple just to buy a home, if you have been considering purchasing one then maybe cheaper car insurance should be your ultimate incentive. If that is not all it takes, browsing the beautiful homes available in neighborhoods all over Miami will definitely tempt you further. Purchasing a home in Miami will bring you sunshine, culture, and cheaper car insurance! Still have questions or concerns hindering you from buying your dream home? Contact RE/MAX Paradise today and our agents can help you with it all!