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Info On Car Insurance Discounts Can Boost Antitheft Sales, Says EIA

Asking potential security customers for the name of their car insurance company could help close a sale, an EIA/CEG survey suggests.

In a survey of 300 car insurance companies, the EIA found that 14 of the top 20 insurers offer premium discounts if a car is equipped with an antitheft system. Of the top 300 car insurance companies, however, only 33 offer discounts.

The discounts, which the companies apply even in states that don’t mandate discounts, range from 5% to 35% of a policyholder’s comprehensive coverage and vary from state to state within the same company.

The top 300 insurers were selected based on their premium income.

“If someone’s car insurance is discounted even 5% over the life of their car, this amount may cover the entire cost of the vehicle security system,” group VP Gary Shapiro noted.

The states that mandate discounts are Florida, Illinois, Kentucky, Louisiana, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island and Texas. Washington state requires companies to consider antitheft devices when scheduling rates.

Naming Names

Among the top 20 insurers, the 14 offering discounts are: AMICA Mutual, CAN, EMC, Farmers, Federated, General Accident, ITT Hartford, Liberty Mutual Group, Maryland Insurance Group, Omaha Property & Casualty, Prudential Insurance and Financial Services, Travelers, United States Fidelity & Guarantee, and United States Automobile Association.

The 19 others that offer discounts are American Family, Armed Forces Insurance Exchange, Auto Club South, Central Mutual, Chicago Mutual Liability, Coop Seguros Muilipes de Puerto Rico, Cotton States, First Auto & Casualty, First Insurance of Hawaii, Indiana Farmers Mutual, Interstate Auto, Kentucky Farm Bureau, LeMars Mutual, North Pacific, Pafco General, Preferred America, Tri-State of Minnesota and Union Insurance.