You may not realize it, but you could be paying too much for insurance. In fact, a recent study found that the average person spends over $1,500 on auto insurance each year. But there are ways to reduce those costs. One of the simplest is to embrace new technology.
Technology has come a long way in recent years, and many insurance companies are now offering insurance discounts for car alarms and for drivers who use certain technologies in their vehicles. Some of the most popular include telematics devices, electronic stability control systems, and anti-theft recovery systems.
Each of these technologies can save you money on your insurance policy, so it’s worth considering them if you’re looking for ways to reduce your costs.
#1 – Embrace Telematics
Telematics is the latest technology to hit the insurance world, and for good reason: It can save you a lot of money. Telematics is the combination of telecommunications and informatics or the collection and analysis of data.
In the case of auto insurance, telematics devices are installed in cars to track various data points, such as how often you drive, how hard you brake, and how quickly you accelerate.
The insurance company then takes this data and uses it to personalize your insurance policy. For example, if you’re a safe driver who rarely brakes hard, you could see lower premiums than someone who drives aggressively. And because telematics can track your driving habits over time, you could also see continuous discounts for being a safe driver.
#2 – Install an Electronic Stability Control System
Electronic stability control (ESC) is a system that helps drivers maintain control of their vehicles by detecting and correcting loss of traction. ESC monitors the vehicle’s steering wheel input, throttle position, and lateral acceleration to predict when a skid is about to occur.
If ESC detects a skid, it automatically applies the brakes to one or more wheels to help the driver regain control.
ESC is now standard in all new passenger vehicles, but if your car doesn’t have it, you can still install it as an aftermarket device. And because ESC can reduce accidents by up to 50%, many insurance companies offer discounts for vehicles equipped with it.
#3 – Protect Your Vehicle With an Anti-Theft Recovery System
If your car is ever stolen, an anti-theft recovery system can help get it back. These systems use GPS tracking or cellular technology to track the location of your car at all times. Once thieves have the car, they can’t take it far without being tracked down.
And because recoveries are much more likely when thieves don’t know what they’re doing, insurance companies often offer discounts for cars with anti-theft recovery systems installed.
#4 – Upgrade Your Old Car With New Technology
One way to save money on your auto insurance policy is to upgrade your old car with new technology.
Many insurance companies offer discounts for cars equipped with safety features like airbags and electronic stability control. And if you have an older car, you can often get these features installed as aftermarket devices.
#5 – Ensure Your Vehicle Is Equipped With a Working Alarm System
An alarm system is one of the simplest and most effective ways to protect your car from theft or from the recent rise in catalytic converter thefts from vehicles hitting La Jolla.
These systems use a variety of sensors to detect when someone is trying to break in, and they then emit a loud noise or signal to notify you.
Most insurance companies offer discounts for cars with alarm systems installed, so it’s worth considering this option if you’re looking to reduce your insurance costs.
And because an alarm system can deter thieves and help get your car back if it’s ever stolen, it’s a great way to protect your investment.
More Ways to Save Money on Auto Insurance
In addition to the discounts mentioned above, there are a few other ways you can save money on your auto insurance policy. Here are a few tips to consider.
Shop Around and Compare Rates from Different Insurance Companies:
When it comes to auto insurance, it’s important to compare rates from different insurance companies. This will help you find the best deal possible and save money on your policy.
Some of the best places to compare rates are online, where you can easily compare quotes from multiple companies. Another option is to talk to your friends and family members, who may have different insurance companies they recommend.
Increase Your Deductible to Lower Your Premium:
One way to lower your insurance premium is to increase your deductible. This means you’ll have to pay more out of pocket if you ever need to make a claim, but it can save you money on your monthly premium.
If you’re worried about having to pay a higher deductible, you can always keep some extra cash in a savings account in case you ever need to use it. Just make sure you have enough saved up to cover the deductible if you do need to make a claim.
Take Advantage of Discounts for Good drivers, Safe vehicles, and More:
There are plenty of discounts available that can save you money on your auto insurance policy.
Some Of The Most Common Include Discounts For:
- Good drivers
- Safe vehicles
- Low mileage
- Certain Occupations
- Military Service
So if you’re looking to save money on your insurance, be sure to ask about any available discounts. You may be surprised at how much you can save.
Extra Savings and Extra Piece of Mind
While you can’t always prevent accidents, there are ways to save money on your insurance policy. And by taking advantage of the latest vehicle-related technology, you can do just that.
Each of the options above will not only help you save money, but they’ll also give you an extra layer of protection. That peace of mind can even help you stay cool in San Diego traffic. So if you’re looking to save on your auto insurance, be sure to consider these options.
Luke Williams writes and researches for the car insurance comparison site, CarInsuranceComparison.com. His passions include insurance and helping others lower their car insurance premiums.