Auto insurance is one of those things in the budget that will always be there. There are very few places in America that allow you to drive without insurance and so it behooves each of us to better manage our own auto insurance coverage. The industry is changing a bit because the competition is strong. There are new and creative car insurance policies in the market today. The trend that has gained the most momentum is the concept of self-insurance. Higher deductibles are the weapon that the customer can use to significantly reduce rates. Higher deductibles mean that the policyholder has decided to assume more of the risk for the insured automobiles. The days of low collision deductibles are pretty much over. Lower deductibles no longer justify high premiums. There is too much money to save with higher deductibles.
Lower rates for young drivers
Young drivers on newer vehicles that have the interest of a lien holder will significantly increase the rate of the automobile. Collision and accident rates for drivers under 21 are very high. A young driver on an older vehicle with no collision and full coverage will significantly reduce the rate. There are discounts for young drivers who have completed a qualified driver training course. Some companies offer good discounts for students with a GPA of 3.0 or higher. When the young driver turns 21, the rates start to drop for most companies.
Senior Citizen Discounts - Most companies offer discounts for seniors aged 55 and over who are retired or work less than 20 hours per week. There are driving lessons for adults which may also offer a discount for seniors.
Multi-Policy Discount – This discount is available when you insure both your auto and your home with the same insurance company.
Tort options – Some companies offer discounts for a limited tort option. Tort is your ability to sue for pain and suffering. Limited tort rates in some states reduce the overall policy premium by up to 30%. Ask your insurance company about tort options in your state.
