5 Car Features That May Lower Your Insurance Costs

Some of the most practical car gadgets are safety tools and anti-theft systems. In addition to helping protect you and your vehicle, many of them can also reduce what you pay for insurance. With maintenance costs climbing and electric vehicles often carrying higher insurance bills, it can pay to look for the discounts insurers offer on cars equipped with certain protection features.

The National Association of Insurance Commissioners (NAIC) lists a range of discounts insurers commonly provide in its guidance on insurance rate disclosures. These can include savings for anti-theft equipment such as alarms, engine immobilizers, and GPS recovery trackers. Fully working factory-installed safety features, including airbags and daytime running lights, may also help lower premiums. Some insurers also run safer-driving programs that use a mobile app or telematics device to share driving data. In some cases, drivers get a discount just for enrolling; in others, safer habits can bring further savings.

It is also important to remember that insurance rules are mainly set at the state level. In some states, insurers must offer discounts for vehicles with certain safety features, while in others they have more flexibility in how they price coverage. Before buying a policy or any aftermarket gadget, check with your insurer to see what your vehicle may qualify for in your state.

1. Anti-theft alarms

Depending on where you live in the U.S., adding an anti-theft device can be one of the easiest ways to cut car insurance costs. Insurers in 12 states are required by law to provide comprehensive coverage discounts for vehicles equipped with certain anti-theft devices. Those states are Florida, Illinois, Kentucky, Louisiana, Massachusetts, Minnesota, New Mexico, New York, Pennsylvania, Rhode Island, Texas, and Washington. Many insurers in other states offer similar savings as well.

Anti-theft alarms can be active, meaning you turn them on manually, or passive, meaning they activate automatically after the engine has been off for a while. Many modern vehicles already include factory alarms, and aftermarket versions are usually inexpensive to install.

Companies such as Allstate, Geico, State Farm, and Progressive offer discounts for vehicles with anti-theft alarms, though there are limits. If your car has a factory-installed passive alarm, you are more likely to qualify without issues. If the device is aftermarket, your insurer may need to approve it, and you may have to show an installation receipt. Some insurers only count passive alarms, while others offer better savings for passive systems than active ones. These discounts generally apply only to the comprehensive portion of your premium, not the entire policy.

2. Telematic driving monitors

Telematics devices are a newer option for driver safety and savings. Instead of physically preventing theft or crashes, they track how you drive and send that information to your insurer, encouraging safer habits. These devices are often the least expensive option, since insurer-provided versions are usually free, and they can lead to some of the largest premium discounts. Still, they may not appeal to drivers who prefer not to be monitored.

Some insurers offer a discount when you sign up, while others require an active account and a record of safe driving before reducing your rate. For example, State Farm gives an initial discount simply for enrolling in the Drive Safe & Save mobile app and installing the company’s Bluetooth device in your vehicle. Continued safe driving can earn up to a 30% discount, with the company noting that some states may offer even more. State Auto, meanwhile, offers up to a 50% discount through its State Auto Safety 360 program.

Some insurers, including Allstate, may offer telematics-based savings just for downloading and setting up the app, without requiring a device to be plugged into the car. Unlike anti-theft or other safety-related discounts, telematics discounts usually apply to the full car insurance policy rather than just one coverage section.

3. GPS recovery trackers

A GPS recovery tracker, or vehicle recovery system, is one of the strongest anti-theft tools available and can produce meaningful insurance savings. As noted above, 12 states require discounts on the comprehensive portion of a policy for cars with qualifying anti-theft devices, and GPS recovery systems, whether built in or added afterward, are included. These discounts are often larger than those available for alarm-based systems.

Insurers value GPS recovery trackers because they are highly effective. An alarm may discourage someone trying to break into a car, but it does little once the vehicle has already been stolen. If the car is not recovered, the insurer may have to pay the full value of the vehicle, which is a bigger loss than simply covering damage from a break-in. A GPS tracker improves the odds that a stolen car will be found, which is why insurers can offer larger discounts and still reduce their own losses.

Many insurers that discount alarm systems offer even better rates for vehicles with a recovery tracker. For instance, Geico and Progressive may offer premium reductions of up to 25% for cars with an approved anti-theft GPS tracker. If your alarm system also includes GPS tracking, be sure to tell your insurer so you can potentially save more.

4. Kill switches and engine immobilizers

Another way to protect a vehicle from theft is through a device that blocks the engine from starting without authorization. These are known as engine immobilizers or kill switches, and most modern cars already have them installed from the factory. There are two main types, and the savings can vary depending on which one your car uses. An active immobilizer, or kill switch, requires the driver to flip a hidden switch when parking the vehicle. If you forget to arm it, it will not work, and because cars do not usually come with this feature built in, it must be added separately. A passive immobilizer, by contrast, automatically prevents ignition shortly after the car is turned off. Many newer vehicles come with this type already installed.

Like other anti-theft devices, these systems qualify for discounts that insurers must offer in 12 states. Elsewhere, many insurers that reward alarms and GPS trackers also include engine immobilizers in their discount programs. Factory-installed passive systems are more likely to qualify, while aftermarket versions may need insurer approval and proof of professional installation. If approved, they can lead to a higher discount than a standard alarm for the comprehensive part of the policy.

5. Airbags, anti-lock braking systems, and other factory-installed safety features

Even if your car is older and lacks advanced anti-theft equipment, you may still qualify for discounts based on the safety features already built into it. Vehicles with working airbags, anti-lock brakes, adaptive cruise control, and similar factory-installed systems may receive insurance discounts, depending on the carrier and the state.

As with other discounts, eligibility varies by insurer and location. Some states, including Florida and New York, require discounts for airbags and ABS, while others leave more room for insurers to decide what they will reward.

Allstate, Geico, State Farm, and most major insurers provide these types of savings. Unlike the earlier examples, though, these discounts do not only affect comprehensive coverage. Airbags, automatic seatbelts, and other passive restraints may lower medical payments or personal injury protection costs, while ABS and electronic stability control can reduce collision and liability rates.