Do insurance companies offer discounts for manual transmission cars
A. Nice try, but you won’t necessarily save on car insurance by having a manual transmission.
The number of manual transmission vehicles sold in the United States has declined.
Depending on the estimate, only 2 to 3.5 percent of all new vehicles sold today have a stick shift. Many manufacturers are discontinuing the production of manual transmissions altogether, said Claudia Mott, a certified financial planner with Epona Financial Solutions in Basking Ridge.
She said a study by U.S. News and World Report said only 18 percent of drivers know how to operate a manual transmission
Each insurer has uses a computer model to determine a driver’s insurance rates, Mott said, and the variables and calculations are proprietary to each company.
“The type of a transmission a vehicle comes with is part of the equation, but a manual transmission is not considered an anti-theft device,” she said. “Despite the idea that they may be harder to drive and thus less appealing to steal, a manual transmission is not among the recognized list of anti-theft devices.”
The anti-theft devices that are generally considered for insurance premium purposes include manual deterrents such as a wheel lock or kill switch or onboard alarms, smart keys that disable the vehicle, glass etching and tracking services, Mott said.
She said some insurers may actually calculate lower premiums for manual transmissions compared to automatics because the cost of repair or replacement can be lower, depending on the make and model.
If you are trying to save on your auto insurance, it’s good to look for discounts that can come from “bundling” with your homeowners at one company. Other strategies include paying in full, having a good credit rating and driving history, she said. The make, model and year of the car, the age of driver, whether you own a home and where the car is located can also impact premium costs.
“Bear in mind that the deductibles you choose will also affect your premium and this is something that should be reviewed with your agent regularly,” she said. “There is also no harm in shopping different insurers for rates periodically so that you know what you are paying is competitive.”
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Do Insurance Companies Offer Discounts for Manual Transmission Cars?
In the past‚ manual transmission cars were associated with a lower risk of theft and accidents. This is because they were less desirable to steal due to the specialized skills required to drive them‚ and their drivers were often considered more skilled and attentive. As a result‚ insurance companies saw these vehicles as less risky and offered discounts to policyholders.
The Present⁚ A Shift in Perception
However‚ the landscape has changed significantly. Today‚ the difference in theft rates and accident statistics between manual and automatic cars is negligible. Additionally‚ the popularity of manual transmission cars has declined drastically‚ with many modern vehicles only being available with automatic transmissions.
Why the Discount Disappeared
The decline in the popularity of manual transmissions‚ coupled with the diminishing risk difference‚ has led insurance companies to re-evaluate their policies. As a result‚ most insurance companies no longer offer discounts for manual transmission vehicles.
Looking for Discounts?
If youre looking for ways to save on your car insurance‚ here are some tips that still apply⁚
- Good Driving Record⁚ Maintaining a clean driving record is one of the most significant factors in determining your insurance premiums.
- Safety Features⁚ Cars with advanced safety features like anti-lock brakes‚ airbags‚ and stability control may qualify for discounts.
- Bundling Policies⁚ Combining your car insurance with other policies‚ like homeowners or renters insurance‚ can often lead to significant savings.
- Comparison Shopping⁚ Regularly compare quotes from different insurance companies to ensure youre getting the best rate.
While discounts for manual transmissions may be a thing of the past‚ there are still many ways to save on your car insurance. Remember to focus on your driving record‚ safety features‚ and comparison shopping for the best possible rates.
The Future⁚ A Focus on Risk Assessment
As technology advances and data collection becomes more sophisticated‚ insurance companies are increasingly relying on sophisticated risk assessment models to determine premiums. These models take into account a wide range of factors‚ including driving history‚ vehicle type‚ location‚ and even driving behavior data collected from telematics devices. The manual transmission vs. automatic transmission distinction is simply not a significant enough factor to warrant a separate discount in this modern risk assessment landscape.
The Bottom Line
While the idea of a manual transmission discount may hold a nostalgic appeal‚ the reality is that insurance companies are no longer offering this type of discount. The focus has shifted to more comprehensive risk assessment models that consider a wider range of factors. If youre looking to save on your car insurance‚ focus on maintaining a good driving record‚ choosing a safe vehicle‚ and shopping around for the best rates.
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