Although you may think that adding an alarm to your car will give you a big discount on your insurance, you may be surprised. Some people do not realize that the type of insurance policy you have will affect whether you can earn a discount. People are often times in such a hurry to install an alarm; they do not look at whether it will actually save money on their premium. There are a few things to keep in mind before you go out and purchase an alarm system for your vehicle.
If you already have comprehensive coverage on your vehicle, you will probably get a discount when you install an alarm. Since this type of coverage covers loses due the theft or acts of God, the insurance company will be willing to give you a discount. Although, if you only have liability coverage on your vehicle, adding an alarm system will not save you any money. If your vehicle is not worth a lot of money or it has a lot of miles, adding full coverage to you policy may not be the best choice.
Other factors the insurance company will look at when offering a discount is how susceptible your car is to being stolen. If you live in a quiet neighborhood or in the countryside, you will not be eligible for a large discount. If you live in the city, but you park in a garage, you probably will not qualify for a large discount either. If you will feel better knowing you have an alarm installed in your vehicle, do it for your peace of mind and not for the discount offered by your insurance company. On the other hand, if you own an expensive sports car and you have to park on the street over night, investing in a great car alarm system will be well worth the money.
Is it a Myth or Fact that Red Cars Cost More to Insure?
When you are considering the purchase of a new vehicle, you want to take time to consider the impact on your insurance policy. Among the myths that may worry you is the idea that red cars are more ...
Read More →
What Happens if You Do Not Have Auto Insurance in Your State?
In an effort to crack down on the high number of uninsured or under-insured drivers, every state in the country has enacted some sort of law that requires people who own and drive cars to be able t...
Read More →
Finding out your Options when your Auto Insurance Denies your Claim
As if dealing with the hassle of an auto accident wasn’t enough, your insurance company has now denied your claim. Your car is wrecked, you’re out several hundred or more dollars, and y...
Read More →