What's the best car insurance for police officers?
Car insurance for police officers — key points:
Which companies offer discounts for police officers?
Companies offer discounts for police officers (and other professions) for what they see as a decreased risk. As a police officer, there’s no one who knows the laws and rules of the road like you. So car insurance companies consider you less likely to file a claim or receive a citation — thus making you a less-risky customer, which is reflected in more affordable rates. Here are some companies offering car insurance discounts for police officers:
There are a couple of things you should consider about these discounts. First, because insurance is state regulated, a company might not offer a discount in one state that it does in another. Another is that your insurance company will require proof of your profession. Sometimes it requires association membership (with an organization such as the Fraternal Order of Police) or other documentation in order to qualify.
*California Casualty offers a unique coverage option. Known as Fallen Officer/Fallen Hero Survivor Benefit, premiums for the remaining calendar year and one year following will be waived for your surviving spouse or partner. Some states (Texas, Georgia, Montana, New Hampshire, and Tennessee) do not participate in this program.
What are other ways to save?
In any case, you should consider alternative ways to save on auto insurance that exist beyond your profession. Let’s break down some cost cutting solutions.
Drive safely
As a cop, you should follow the rules of the road irrelevant of a discount. But, as you can estimate, violations like speeding or DUIs can have major impacts on your insurance premium. So, if you want to stay in the good graces of your employer and your car insurance company, mind the road.
Average Increase in Annual Premium in 2016
| Accident/Violation | 6 Month Premium Increase |
|---|---|
| None | |
| Speeding 11 - 15 MPH Over Limit | $141 |
| Speeding 16 - 20 MPH Over Limit | $153 |
| Speeding 21 - 25 MPH Over Limit | $165 |
| At-Fault Accident | $306 |
| Reckless Driving | $499 |
| Racing | $523 |
| DUI | $529 |
Bundle all insurance policies
If you own a home or rent an apartment, you should bundle your policy with your auto in order to get what's called a multi-policy discount. This discount, which affects both your home/renters and auto, can save you an average of $73 a year on your car insurance. If you have other forms of insurance, such as motorcycle, life, or umbrella, you can also get a discount by bundling them as well.
Savings on Bundlings
| Savings with Renters | Savings with Home |
|---|---|
| $73 | $142 |
Pay smart
How you pay can have a big impact on your car insurance premium. If you pay all of your premium up front, versus monthly in installment payments, you reduce the amount of processing fees your insurance company will charge you (on average, $61 a year). Furthermore, if you pay for your auto insurance via a direct deposit rather than a credit or debit card, you can see some savings as well.
Savings Based on Method of Payment
| Savings with Paid in Full | Savings with EFT |
|---|---|
| $61 | $27 |
Consider telematics
Telematics are a new idea that some insurance companies are starting to embrace. Basically, using an in-car device, insurance companies track the way you drive in order to more accurately determine your premium. Rather than using things like your location or your credit score as indicators, this method allows for insurance companies to more accurately price your premium. Here are some companies that have these programs as well as the potential savings. Consider, however, that your state might not participate in these programs, even if your company is listed below.
| Company | Estimated Savings |
|---|---|
| Progressive's SnapShot | Average of $130 |
| Allstate's Drivewise | Average of 10-25% |
| State Farm's Drive Safe and Save | Up to 15% |
| Esurance's DriveSense | Varies |
| Nationwide's SmartRide | Up to 40% |
| Liberty Mutual's RightTrack | Average of 5-30% |
Be smart with your coverages
As a officer of the law, you understand that the only coverage levels you're required to have is your liability coverage (unless you have a lien on the vehicle). So, if your vehicle is paid off and the value of your car has depreciated signficantly, consider if having comprehensive and collision coverage is financially worth it. If you don't want to lose those coverages, consider raising the deductibles. Here are our tips regarding if you should reduce coverage:
- First, determine the estimated fair market value of your vehicle using Kelley Blue Book and NADA guides.
- Assess the difference in price between full coverage (comprehensive and collision) and liability-only. If the amount of money you save in premium from losing full coverage is not enough to cover or replace your vehicle (which you determined from step 1), keep full coverage.
- If by step 2 you determine that you need full coverage, consider raising your deductible - by raising your deductible, you can lower your premium. However, by raising your deductible, you lower the payout you would receive if your vehicle were totaled. As the deductible is what you pay, and the remaining amount of the damages are covered by your insurance company.
Shop around
It’s important to consider that just because a company offers a discount based on your profession, doesn’t mean you can’t get a better deal elsewhere. You should shop around for car insurance with as many companies as possible in order to make sure you find the best possible rate.