As car insurance rates continue to climb, there are increasing numbers of car insurance discounts as well. In fact, because of the many safety and anti-theft discounts on newer cars, you may find that the difference between the rate on a new vehicle and a used vehicle is negligible. If the rates in your area are higher than average, it often means that the number of claims is higher than usual in your location.
This is a factor which is out of your control. Individually though, there are many ways to reduce the cost of your automobile insurance rates. Generally, self insurance and various discounts are your best hedge against higher rates.
VEHICLE DISCOUNTS
These are discounts which are directly related to the vehicle or vehicles. For instance, discounts for factory air bags and seat belts are pretty much standard across the industry. Few new vehicles don't come equipped with at least seat belts these days. Many vehicles are equipped with anti-lock brakes which provides another sizable premium discount.
If your vehicle has a key-activated anti-theft device, you should be receiving a discount for that. More than one vehicle on a single policy usually will mean a multi car discount
DRIVER DISCOUNTS
Most insurance companies provide a safe driver discount. This discount is based on frequency of accidents and on overall driving record. Often there is a retirement discount for senior citizens. If senior citizens complete a mature driving course they will usually be able to receive a discount.
Young drivers get a premium discount when they complete a certified driver's training course. Student drivers who maintain a 3.0 grade point average receive a discount from some companies and sometimes a student who attends a college or university more than 100 miles from home will receive a resident student discount.
POLICY DISCOUNTS
If you carry more than one policy with the same insurance company, such as homeowners policy and auto insurance, you should ask for a multi policy discount.
SELF INSURANCE
Deductibles on your insurance is the amount of a claim you are prepared to pay out of pocket in the event of a collision or claim against the comprehensive portion of your policy. Paying a larger amount, or higher deductibles--will often make a dramatic difference in the amount of your insurance policy premium.
Paying high premiums for low deductible rates cannot be justified from a financial standpoint. Paying high deductibles will save you literally thousands of dollars over the life of an automobile.
A self insurance option found in some, but not all states is that of a limited tort liability option.
Tort is the right to sue for damages due to pain and suffering. If your state is one which allows limited tort option in return for lower rates, you essentially are limited in the right to sue, but it also provides an enormous discount on premiums for car insurance. Check with your insurance company to see whether it is offered in your state.
Gus Taperman holds a Bachelor's degree in Commerce and completed his master's in Business Administration . He is working as writer and financial consultant to find a Personal loans, Debt consolidation, home equity loans at cheap rates visit www.taperman.com