The Arizona Republic
Septemper 25, 2011
Russ Wiles –

If you haven't checked up on your insurance lately, you might be leaving some money on the table.

Insurers offer various discounts to motorists and homeowners. Some are obvious, others obscure. Some reflect new technology and others, decades-old underwriting practices.

But regardless, there's probably enough potential reward to justify pulling out your policy or calling your agent for a review.

Mark and Lori Roberts and their daughter Kristen are taking advantage of one of the newer options.

They've plugged small telematics devices into each of their vehicles. The devices recently were made available at no cost by insurer Allstate to its Arizona customers.

The devices track driver behavior, and results are quickly available online.

Motorists are rewarded for accelerating gradually, braking softly, not driving too many miles, driving slower than 80 mph and staying off the road after 11 p.m.

The Robertses have plugged the small devices into their dashboard computer ports, sparking a friendly competition to see who gets the best results. At stake: premium discounts offered by Allstate of up to 30 percent, with an automatic 10 percent reduction just for signing up.

"I have the best driving record so far," said Mark, a project manager for a solar-development company in Mesa. But he concedes that his daughter faces the longest daily commute, which hurts her results, and his wife faces a handicap because she drives a vehicle with sensitive brakes.

"It's all about behavior modification," Mark said. "We have two teen drivers and a young-adult driver, and I want all of us to be more aware."

Progressive offers a similar telematics device that also leads to discounts of up to 30 percent. So far, the company claims that participating motorists have saved about $150 yearly on average. It also plugs into the onboard diagnostic port below the dashboard and works on most autos built after 1996.

Neither the devices offered by Allstate nor those from Progressive track where a vehicle is driven, helping to allay concerns over privacy.

"It's really looking for safety by checking how much and when you drive," said Leah Knapp, a Progressive spokeswoman in Ohio.

Other common auto discounts include those for good driving, which means few - if any - accidents or moving violations.

Low mileage also might qualify for a discount. For example, insurer USAA, which caters to military families, offers rate reductions of up to 80 percent for members whose autos are stored while they're deployed for military service, said Clay Allen, a spokesman in Phoenix. USAA also offers discounts on homes that are unoccupied during deployment.

Many companies also offer discounts for insuring multiple cars and offer deals for younger drivers who maintain good grades or who go through driver training. It also pays to have vehicles equipped with safety devices. At State Farm, for example, discounts are available for autos featuring airbags, antilock brakes and daytime running lights.

Anti-theft alarms and disabling devices also are favored by certain companies.

While you're at it, resolve to pay bills on time and to practice other responsible financial behavior, because insurers can and do offer better rates to consumers with high credit scores.

While it takes time to build a high score, you should regularly check your credit reports for inaccuracies.

In metro Phoenix, credit scores average 663, according to researcher Credit Karma, compared with 665 nationally on the standard FICO scale that runs from 300 to 850.

Technology offers consumers a way to stretch insurance dollars further by shopping online, and you might shave a few dollars by agreeing to pay premiums automatically from a bank account.

Progressive offers a program called Name Your Price that lets you design various policies depending on what features you want and how much you're willing to pay for them.

But while it's smart to shop around periodically, keep in mind that switching frequently can hurt because consumers who stay with an insurer for many years can earn discounts designed to reward loyalty.

"It's smart to look for better deals, but staying longer with the same company often is better," said Angela Thorpe, a State Farm spokeswoman in Denver.

State Farm, for example, rewards drivers who stay with the company and remain accident-free for at least three years.

"When you go to a new company, you're considered a new risk," she said, and that means you could face higher premiums.

On the homeowner side, new dwellings typically feature electrical and plumbing systems and other more-reliable hardware. Newer materials also are less likely to be out of stock.

For these reasons, insurers often offer discounts to people who are buying new homes or who are replacing their utility infrastructure on older dwellings. State Farm has such a plan.

"If a home is built and owner-occupied during this calendar year, the customer actually receives a discount for as much as 38 percent," Thorpe said. "If the home was built last year and you just bought it and moved in, the discount would be 34 percent."

The discount gradually decreases and disappears after 16 years, she said, but owners who fully update their utilities in an older home still could qualify for the maximum.

Discounts also typically are available on homes equipped with burglar alarms, smoke detectors and other safety devices.

Homeowners who remain claims-free can earn discounts, too - up to 20 percent at State Farm, for instance. After nine years, that discount remains, even if customers later file a claim, Thorpe said.

Consolidating your insurance policies under one roof - for auto, home and even life and health - also can generate rewards. For example, State Farm is in the process of boosting its "multiline" discount for Arizona customers from 20 percent to 25 percent.

And don't overlook earning a discount by raising your deductible - the amount of loss you absorb before insurance kicks in.

Raising your auto deductible from $200 to $500 could reduce auto-collision premiums by 15 percent to 30 percent, says the Arizona Insurance Council, an industry group in Phoenix.

Reach the reporter at russ.wiles@arizonarepublic.com or 602-444-8616.