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Improve Your Home and Car Security to Cut Your Insurance Rates

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Making your home and your vehicle more secure is a win-win. You’ll not only reduce your risk of theft, but you can also reduce your insurance premiums. 

We’ll share the popular insurance discounts for security systems for both your car and your home. You may be excited to learn about some other incentives besides premium discounts that many insurance companies offer.

We’ll also explore other ways to save money on your home and auto insurance so that you can maximize your insurance budget.

Home Insurance Security Discounts and Incentives

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You might think that security discounts are limited to systems that deter invaders from breaking in, but you may qualify for a discount for other smart home features that make your home safer. 

Types of Home Security

Every insurance company has its own stipulations for what safety improvements will earn you a discount. We’ll look at some of the home improvements that may make you eligible.

One option is professionally monitored alarm systems. Because professionally monitored alarm systems effectively reduce home invasions, more home insurance companies offer discounts for these systems than other security measures.

Security cameras are another type of security system. Some home insurance companies recognize that cameras outside your house help lower the risk that your home will be broken into. 

Some people choose to go with a self-monitoring system which is as good as your commitment to monitoring. You may not get as significant a discount for self-monitoring systems, but you should consult with your home insurance provider to see what they offer.

Some security devices protect from internal problems. A smart water shut-off valve is one such device. If an appliance develops a significant leak or a pipe bursts and you’re not home to remedy the situation, your home could be ruined by water damage.

The smart valves decrease your home insurer’s risk of paying out for a water damage claim, so sometimes they’ll give you a discount.

Residential sprinkler systems have become more prevalent in recent years and are another form of internal security. Properties that have sprinkler systems have a far lower chance of being destroyed by fire than houses with them. As usual, with insurance, you pay lower rates when you have a lower risk.

This list is by no means exhaustive, but it covers some of the traditional and more recently included safety features that may be eligible for a discount.

Insurance Security Incentives

Many home insurance companies have partnered with home security companies to offer customers savings. Some of these incentives include discounted monthly security payments, free or discounted initial product purchase, and free or discounted installation.

Next, we’ll list some of the insurance company partnerships with security and safety companies. They are:

  • American Family – ADT
  • Hippo – SimpliSafe, Notion, Kangaroo, and ADT
  • Liberty Mutual – Vivint
  • State Farm – ADT

More partnerships have been established than what’s listed above, and you can expect more partnerships to form. 

You should take the time to see what kinds of partnerships your home insurer has made so you can take advantage of the incentives.

Car Insurance Security Discounts

Most car insurance companies offer discounts for security features in your car. In fact, 12 states have laws requiring car insurance providers to give discounts to customers who have implemented anti-theft measures.

Those 12 states are Florida, Illinois, Kentucky, Louisiana, Massachusetts, Minnesota, New Mexico, New York, Pennsylvania, Rhode Island, Texas, and Washington. 

Even if you don’t live where anti-theft discounts are required, chances are your car insurance provider will still offer reduced premiums for specified security measures.

The following are some of the anti-theft measures that may qualify you for a discount:

  • Alarm system – Alarm systems usually activate an audible alarm when a car is being broken into. Typically, would-be thieves want to avoid drawing attention while breaking into vehicles, and alarms draw attention, so they deter would-be thieves. 
  • Passive ignition cut-off system – Passive devices activate without the user having to turn anything on. An ignition cut-off system, sometimes called a kill switch, will cut power to the vehicle if the lock or ignition is tampered with.
  • Vehicle recovery systems – Some makes and models have built-in vehicle recovery systems, but if yours doesn’t, you can purchase aftermarket devices. These systems allow you to track your vehicle’s location, leading to faster recovery and less damage.

If you’re weighing the pros and cons of paying for a subscription vehicle tracking service like GM’s OnStar, you should consider the potential for insurance savings in your decision. 

Security discounts are one of the most significant ways to save on your car insurance premiums. You could save up to 30% just for making your car harder to steal. Your actual savings will vary based on your provider and where you live, but you’ll almost always save when your car has security measures in place.

Home and Car Insurance Savings

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Since we’ve been covering security insurance discounts for both your home and your car, we’d better mention that bundling home and auto insurance from the same provider will usually help you save with a bundling discount. 

The nice thing about a bundling discount is that it applies to each line of coverage from the same insurer, so instead of just getting a deal on your car or home coverage, you can get it on both.

There are several more discounts that you may qualify for besides security and bundling. Check out the following possible discounts you may be eligible for:

  • Claims-free – If you haven’t filed a claim within the last three years, you may qualify for a discount.
  • Military – If you are serving or have served in the military, you may be eligible for home and auto insurance savings.
  • Occupational – Some insurance companies offer individuals in select occupations a discount.
  • Senior – You may be able to get a senior discount for home and auto once you reach a certain age outlined by your insurance provider. 

Another way to save on insurance is to shop around and switch to a company that offers you a lower rate. You should compare home and auto insurance rates at least once a year and any time you experience a significant life change like moving or buying a new car.

Safety and security devices for your home and car can keep you safer and can protect your home, car, and belongings from damage or loss. Those are reasons enough to consider implementing security measures.

The insurance savings such measures may earn you are a bonus. Find out what your insurer offers so you can maximize your potential savings.

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About Author:

Melanie Musson writes and researches for the car insurance site, She strives to help others understand their insurance needs so they can ensure adequate protection and security.



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