2011 Auto Insurance Trends

The automotive industry is constantly changing; therefore, it makes sense why the auto insurance sector would have many exciting trends, as well. With the 2011 introduction of the plug-in hybrid (Prius and Yaris), which can be plugged into any 110V outlet or voice-control interface (Kia Sorento SUV), which lets drivers control the stereo, plug-in devices and send and receive calls without using their hands for a unique experience known as, voice-activated operation. Just like the auto industry, auto insurance companies are trying to compete for your business, which is why they offer special premiums, discounts and other incentives to their customers and potential customers. In the following information, we will explain some of the latest auto insurance trends for 2011 and some of the discounts, as well.

Student Driver Discounts

In the past, many insurance companies used to classify student drivers as being risky and costly to insure. While this fact may still be true, the numbers of student drivers has progressively been growing, which has resulted in insurance companies needing to make changes to their policies regarding insuring student drivers (in order to increase business). Insurance companies are now, realizing that student drivers don’t necessarily require high rates. In addition, insurers are competing for business from student drivers, as well, by offering discounts, risk buffering and other incentives to drivers who attend school. Some discounts to student drivers include, a good student discount, discounts for being insured under the same insurance company as the student’s parent or guardian, cheaper rates for students who make payments on time and discounts to students who are part of a group, club or organization that is eligible for a group discount.

Safety Discounts

Insurance companies don’t want to pay, so to avoid paying a lot of money (in the event of a car accident) many companies reward people by giving them discounts for driving safe. The discounts vary according to the company, but some of the safety discounts include:

*Air bags – Many insurance companies offer discounted rates to drivers who have air bags installed in their vehicles. Sometimes, the discount is on the injury/liability portion of the bill for drivers who have air bags. In addition, many insurance companies offer substantial discounts to customers who have BOTH front and side air bags.

*Seat belts – One of the most important aspects to driving safety is the seat belt. Seat belts typically save 10,000+ lives per year, which is why the insurance companies offer a discount to customers who regularly wear their seat belts.

*Day-safe lights – Day lights are an additional safety feature that help keep the car visible and prevents accidents. Cars that are equipped with day-safe lights will typically receive a discount on their premium.

*Head injury protection – Headrests offer protection against a head injury and neck trauma, in the event of an accident. Therefore, several insurance companies provide a discount to those vehicles that are equipped with protective headrests.

*Theft-deterrent alarm – having a security alarm installed in the vehicle can result in lower insurance rates, as well. The rates are calculated using several factors including, the risk of the vehicle being stolen. Therefore, security alarms or theft-deterrent alarms will help to get a cheap premium.

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