Car Alterations That Can Lower Insurance Costs

Insurers cringe at the prospect of car modifications because it usually means alterations like aftermarket spoilers, high-performance engines, and hydraulic lift kits. Of course, modifications like these invariably result in higher premiums for the driver. On the other hand, there are a select few insurer-approved alterations that can earn you discounts on your auto insurance premiums. For car modifications to positively affect your car insurance rates, they usually have to enhance the safety of the vehicle or deter theft. For the most part, insurers only accept safety equipment that was installed by the manufacturer, so most of the modifications we’ll discuss are related to theft prevention. In what follows, we’ll describe the vehicle alterations that can save you the most money on your car insurance rates.

Alarms and Vehicle Immobilizers

If you add an aftermarket electronic alarm system to your vehicle, most insurers will provide a discount on your auto insurance rates. Before you choose an alarm, verify that your carrier actually gives a discount for anti-theft alarms and, if so, what alarm systems are approved. A far more effective anti-theft device that will likely get you a heftier insurance discount is a vehicle immobilizer anti-theft system. With an immobilizer, an electronic device shuts off part of your car’s fuel or electrical system when it senses a breach or tampering. This makes it almost impossible for a car thief to start your vehicle without the key.

Stolen Car Recovery Systems

Many auto insurers will also provide large discounts on your comprehensive coverage if you install a stolen vehicle recovery system in your car. Installation is very simple and non-invasive. A small transceiver that operates via radio frequency is hidden somewhere in your vehicle. If the vehicle is stolen, this transceiver will emit a signal that law enforcement officers equipped with LoJack tracking devices can trace. LoJack has equipped most police officers with LoJack tracking systems, so the chances that your stolen vehicle will be recovered are good.

Pay-As-You-Drive Devices

Depending on your car insurance company and the state where you live, you might be able to lower your car insurance costs with a pay-as-you-drive insurance tracking device. Pay-as-you-drive insurance monitors how, how much, and when you drive and sets your premiums accordingly. Some carriers provide high-tech electronic devices that policyholders can simply plug into their vehicles. The information the device collects is automatically sent to your insurance carrier. Other carriers require a more intensive installation of the device in your steering column. Certain drivers could save as much as 25%-50% on their car insurance premiums by installing pay-as-you-go devices.