Anti-theft solutions installed in the factory or at a later stage can deter thieves or aid in recovery of the stolen vehicles. This will reduce the losses and claim pay-outs by auto insurers. The usual effect of these reductions in theft and increase in recovery should mean lower vehicle insurance premiums for the owners of such automobiles. This is the assumed outcome by most motorists.
Most states do legislate that companies take into account of such help provided by the technology. Around ten percent car insurance saving is expected to be offered. However, sometimes policyholders need to take a collective or individual action to get what they deserve. There are court cases where policyholders question the provision of discounts. In some cases companies are found not to be offering the savings.
One particular court ruling in Pennsylvania shed lights into the issue. Upon finding that motorists are not being offered auto insurance discount for anti-theft installations the court rules in favor of policyholders. The court decides that companies not only should provide these savings when asked but also they should incorporate them in their premium calculations so as to offer the savings automatically. This reduces any future arguments as to who is to blame for lack of them.
If a car is fitted with alarms, immobilizers and GPS tracking devices thieves are not only discouraged to engage with the efforts to steal it but also they are unlikely to get away with the act. They are either stopped at the point of trying or they are tracked where they are heading to. Therefore, companies should offer automobile insurance discounts and do offer regardless of what the state laws mandate.
Moreover a guide to which auto anti-theft systems get what sorts of discounts is highly helpful to make the savings transparent. This approach would encourage the installation or selections of vehicles that have them already. So, clear guidelines would help motorists to get the most out of these savings. And they would help the insurers as more and more motorists would have them to reduce losses and increase premium discounts.
General Guidelines for Car Insurance Anti-theft Device Discounts
Alarm only: Breaking noises from alarms that goes at least for three minutes can be heard from far away and should qualify for minimum of 5% discounts.
Active and passive immobilizers: Solutions like steering wheel locks require the key to release the steering wheel functions. Even the thief manages to break in and get the car started they have another barrier to mobility. Most thieves are highly knowledgeable of these devices and will pass such cars and move on to easier targets. They may require the driver to enable these devices or they may be already installed within the vehicle to work automatically. These immobilizers should qualify owners for further 5% to %20 discounts.
Auto recovery systems: GPS tracking systems are highly effective in locating whereabouts of the automobile. This will aid the law enforcement or third parties quickly find it even it is stolen. These are highly advantageous when you have an expensive car. There is a chance that thieves will be caught in the act thanks to these devices and it will reduce future incidents as well.
When a vehicle is properly protected with all the latest anti-theft devices the policyholder should get as much as twenty percent discounts on comprehensive coverage. The amounts will depend on how the states regulate the position as well as how a particular insurer applies these savings voluntarily. You are advised to check with your insurer and confirm the savings you are receiving.