Will a security system lower my car insurance rates?

We are all looking for ways to lower our car insurance rates, and one of the ways we may be able to save money is by taking advantage of driver discounts available from insurance companies. There are a plethora of auto insurance discounts available, though some are more specifically tailored than others. For example, if you work in a certain field like teaching or medicine, you may qualify for a discount on your insurance rate either with your current insurer or another company. When comparing car insurance quotes, it is a good idea to see exactly which discounts various companies offer.

Vehicle Safety Equipment Discount

While this discount varies from one company to another, in general, car insurance companies offer discounts for safety features that make you less likely to get hurt in an accident or make your car less likely to be damaged. By this method of calculating discounts, equipment like air bags and anti-lock brakes often point toward savings to you on your insurance bill should you meet the eligibility requirements.

Anti-Theft Systems

Anti-theft systems deter thieves from stealing cars by making it difficult for them to accomplish that goal. Car insurance companies take this matter seriously, as millions of dollars are lost every year to auto theft. Even if the car is recovered, it is often damaged so badly that the insurance company must “total” it; many cars are never recovered at all.

Surprisingly, some of the “hottest” cars for thieves are not flashy sports cars or huge SUVs; the Honda Accord has been one of the most-stolen cars for several years running, along with the Toyota Camry and Dodge Caravan. Thieves are usually interested in cars that they can sell, and popular models with many integrated features are popular targets.

Thieves are also likely to choose cars that have loads of “features.” Sometimes thieves do not want the car at all, but the fantastic stereo system it contains. Of course, this also results in significant damage to the vehicle, so anti-theft devices can also deter this type of “standing” theft and help keep your car from being vandalized.

In order to prevent your car from being stolen, you may have purchased a car with integrated anti-theft devices or installed them yourself post-factory. For example, “The Club” has become a very popular anti-theft device that costs less than $100. It can be installed or removed in seconds from a steering wheel and prevents thieves from driving the car. Some car insurance companies will give you a discount for this sort of anti-theft protection, although most prefer to see integrated or “on-board” anti-theft measures in order to give discounts.

Most onboard anti-theft devices consist of two components: a loud, attention-drawing siren or alarm, and ignition shut down. Most newer cars come with “chipped” keys, or keys that contain microchips that activate your engine. Unless your key has a chip, your car will not start at all. Other cars have after-market security installed, at a cost of $150 to $1,000. The better the brand and the more comprehensive it is, the more likely your insurance company will give you a discount.

After Market Installation

In thinking about installing after-market security, be sure to weigh the cost of your comprehensive insurance deductible and any discounts you may receive against the cost of the system. For example, if you will receive a ten percent discount on your comprehensive premium of $500 per year for installing a security system, and your comprehensive deductible is $250, you would have to receive the discount for five years to equal the amount of your deductible. You would have to receive a discount for even more years to pay for the cost of installation. If your system costs $1,000, it is unlikely you will ever “break-even,” even if you have a discount from your company.

Of course, saving money is not the only reason to install a security system. You may feel safer, or may simply want to avoid the hassle of a thief taking your car. If you can afford the cash outlay, installing a security system is usually a good idea, even if you never regain the cost of the system itself.

Case Studies: Security Systems and Car Insurance Discounts

Case Study 1: Vehicle Safety Equipment Discount

John owns a car equipped with advanced safety features such as airbags and anti-lock brakes. His car insurance company offers a discount for vehicles with these safety features. By meeting the eligibility requirements, John qualifies for a lower insurance premium, reducing his overall car insurance costs.

Case Study 2: Anti-Theft Systems

Sarah recently purchased a popular car model known for its appeal to thieves. Concerned about potential theft, she installs an aftermarket security system that includes a loud alarm and ignition shut down. Sarah’s insurance company acknowledges the effectiveness of her anti-theft device and grants her a discount on her comprehensive coverage, contributing to her savings on car insurance.

Case Study 3: After Market Installation

Mark decides to retrofit his car with an advanced security system that meets his insurance company’s requirements. Although the cost of the system is substantial, Mark values the added protection it provides and feels more secure.

His insurance company recognizes the effectiveness of the security system and offers him a discount on his comprehensive premium, making the investment in the security system worthwhile for him.