Why adding an alarm to your car is not the discount you thought it would be.
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.
