There are more discounts on car insurance than ever before. Some of the newer vehicles have many safety features that discount the overall premium. Sometimes the difference in a new car rate verses the old car rate is negligible. A higher rate on car insurance is often an indication that the claim frequency is high in the area that you live. This is completely out of your control. There are several ways to keep your rates to a minimum. The combination of policy discounts and self insuring are your two main weapons against higher rates.
Available Discounts
1. Vehicle Discounts - Air bag and seat belt discounts are available along with anti-lock brake discounts. There are also discounts for a key activated anti-theft device. Two vehicles on the policy will give you a multi-car discount.
2. Driver Discounts - There are safe driver discounts given by most companies based on driving record and accident frequency. There is a retirement discount and a mature driving course discount for senior citizens. Youthful drivers receive a discount for completing a qualified drivers training course. Some companies have good student discounts for young drivers that achieve a 3.0 grade point average whether in high school or college. There are resident student discounts for college students that are in colleges and universities that are over 100 miles away from home.
3. Policy Discounts - The multi-policy discount is available when you insure both your auto and homeowner policy with the same company.
Self-Insuring
1. Deductibles - Higher deductibles on the collision and comprehensive portion of your policy will lower your rates dramatically. Low deductibles no longer justify the high premiums. You will save thousands of dollars over the years by using higher deductibles.
2. Tort Liability - Some states have lower rates for a limited tort option. Tort is your right to sue for pain and suffering damages. The limited tort option limits your right to sue but also gives you a huge discount on your car insurance. Contact your insurance company about this option in your state or check our recommended insurers.
