Which Tech Purchases Might Qualify You for an Insurance Discount?

Stop overpaying: which tech purchases can actually lower your insurance premium in 2026

Skyrocketing vet bills, surprise break-ins, or a burst pipe can turn a peaceful week into financial stress. Insurers in 2026 are increasingly rewarding policyholders who reduce risk with connected technology — but only when you buy the right devices and prove they’re installed and active. This guide gives a practical, insurer-focused list of devices (alarms, cameras, trackers), how insurers typically evaluate them for an insurance discount, and an exact documentation workflow to make your premium reduction claim bulletproof.

The evolution in 2025–2026: why insurers now care about smart devices

In late 2025 and into 2026, insurers accelerated partnerships with smart-home and pet-tech companies. After CES 2026 and several pilot programs, many carriers expanded offerings tied to Internet of Things (IoT) devices and usage-based underwriting. The idea is simple: devices that reduce theft, property damage, or lost pets reduce claim frequency and size, so insurers can pass savings back to customers as discounts or lower renewal premiums.

Two practical implications for policyholders:

• Insurers increasingly require documented evidence that devices are active and monitored — not just purchased.
• Discount eligibility now depends on device type, installation method (professional vs DIY), and whether monitoring is continuous or self-monitored.

Devices insurers most commonly recognize for discounts

Below is a practical list — the devices insurers most often accept when assessing eligibility for a discount. For each item I include what insurers usually look for and quick tips to document them properly.

1) Professionally monitored burglar alarm systems

Why insurers like them: Central station monitoring with professional response greatly reduces theft and vandalism risk.

• What counts: systems monitored 24/7 by a licensed central station (often UL-listed).
• What insurers look for: proof of a monitoring contract, monitoring company name, start date, and evidence of active signaling (e.g., a monitoring confirmation email).
• Documentation tips: keep the installation invoice, monitoring contract, and a photo of the alarm control panel showing the system status and model/serial number. For information on secure-entry and privacy considerations in shared settings, see smart rooms and keyless entry guidance.

2) Smart cameras and video doorbells (outdoor + indoor)

Why insurers like them: Visual evidence reduces false claims, deters crime, and speeds investigations.

• What counts: outdoor-rated cameras or video doorbells with cloud recording or continuous local recording and timestamped footage.
• What insurers look for: camera location (front door, driveway) and proof footage is stored for a reasonable retention period.
• Documentation tips: save your proof of purchase, take timestamped screenshots from the camera app that show device name, serial number and live feed, and export a short sample clip with metadata (tools and workflows for exporting clips are covered in video workflow guides).

3) Smart smoke, CO, and water-leak detectors

Why insurers like them: Early detection limits damage and claim severity for fires and water events.

• What counts: interconnected, certified devices (often with recognized safety certifications) that send alerts to your phone or monitoring center.
• What insurers look for: certification, connectivity proof, and whether alerts reached a phone or monitoring service.
• Documentation tips: retain receipts, take photos of installed devices with model numbers, and screenshots of the device settings page showing alerts enabled. For background on device telemetry and alerting architecture, see edge & cloud telemetry integrations.

4) Smart locks and garage door sensors

Why insurers like them: prevent unauthorized entry and accidental open-door incidents.

• What counts: professionally installed or consumer smart locks with secure authentication and event logs.
• What insurers look for: evidence of locked status logging (app history), and if available, two-factor authentication enabled.
• Documentation tips: screenshot the lock’s activity log showing recent lock/unlock events and your account settings showing device serials. See privacy and access-design notes for keyless systems at smart rooms guidance.

5) Water shutoff systems and smart irrigation sensors

Why insurers like them: automated shutoff or leak detection prevents catastrophic water damage.

• What counts: automatic shutoff valves and connected leak sensors installed at high-risk points (water heater, under sinks).
• What insurers look for: installation receipts and evidence that sensors are actively reporting status to an app or monitoring service.
• Documentation tips: photograph installed valves with serials, keep plumber invoices, and capture sensor app dashboards that display “online” status. Monitoring and observability approaches useful for reliability are outlined in network observability field guides.

6) Glass-break and motion sensors

Why insurers like them: enhanced perimeter security reduces burglary success.

• What counts: sensors integrated into a monitored alarm system or connected to a professional monitoring service.
• What insurers look for: proof these sensors are part of a monitored configuration.
• Documentation tips: include the system map from your alarm provider that lists sensor types and locations.

7) GPS pet trackers and activity monitors

Why insurers (and you) like them: quicker recovery for lost pets and data on activity levels for chronic-condition management.

• What counts: GPS collars or tags with active location reporting and geofencing.
• What insurers look for: proof the device is registered and actively tracking (recent “last seen” timestamps), and sometimes evidence you participate in a recovery service tied to the tracker.
• Documentation tips: save purchase receipts, screenshot the tracker app showing location history, and export a short location log or .csv if available. For pet-gear and travel context, see pet-friendly travel guides.

8) Microchipping (not a gadget — but still tech)

Why insurers value it: microchips remain the most reliable permanent ID for pet recovery.

• What counts: microchip implantation with registration in a national database.
• What insurers look for: documentation of chip number and proof of registration.
• Documentation tips: scan confirmation from the vet, microchip number on paperwork, and database registration confirmation screenshot or email. For broader pet-care context and owner expectations in 2026, see pet care trends.

How insurers evaluate eligibility: the 2026 checklist

Most insurers assess discounts based on three pillars: device effectiveness, active monitoring, and verifiable documentation. Use this checklist to confirm you meet typical eligibility requirements:

1. Device authenticity — valid model and serial number recorded. Learn about vendor trust and telemetry quality in trust-score frameworks.
2. Proof of purchase — receipt, invoice, or credit card charge that shows date and vendor.
3. Proof of installation — photos, timestamped video, or professional installation certificate.
4. Active status — app screenshots showing devices online, with recent telemetry or event logs.
5. Monitoring contract (if required) — monitoring company name, start date, and billing confirmation.
6. Retention of evidence — exported sample clip or log file that includes timestamp and device ID.

How to document purchases and installation: step-by-step (actionable)

Follow these steps immediately after purchase and installation to maximize your chance of a premium reduction.

Step 1 — Collect purchase evidence

• Save the invoice or receipt (PDF preferred). If you bought online, download the order confirmation and payment transaction.
• Record the device model, serial number, and MAC address (often inside the app or on the device label).

Step 2 — Take installation photos & video

• Photograph the device in place (wide shot showing location and close-up of model/serial label).
• Record a short video (30–60 seconds) using your phone that includes the device powering on and the device app showing it is online. Narrate the date/time while recording.

Step 3 — Export app evidence

• Screenshot settings pages that show the device ID, firmware version, and connectivity status.
• If the app provides exportable logs, download a recent sample log or export a short recorded clip with metadata.

Step 4 — Get professional proof when possible

• If professional installation was used, request an installation certificate or signed invoice with the installer’s contact information.
• For monitored systems, keep a copy of the monitoring agreement and the first billing confirmation.

Step 5 — Submit to your insurer the right way

Most insurers accept digital uploads through their portal or email. When you submit, include a clear cover note with:

• Policy number and contact info
• Device list (model, serial, purchase date)
• What you’ve attached (invoice, installation photos, app screenshots, monitoring contract)

Pro tip: timestamped video uploaded to cloud storage (with a share link) makes verification faster than sending many separate files.

Sample submission template (copy-paste and adapt)

Use this concise, insurer-friendly format to avoid back-and-forth delays.

To: [insurer email or portal]
Subject: Device Discount Submission — Policy #[your policy number]

Hello [insurer name/agent],

I’m requesting consideration for a premium discount based on new protective devices I installed on [date]. Details and attachments below.

1) Device: [Smart camera] — Model: [X], Serial: [12345], Purchase date: [mm/dd/yyyy]
   Attachments: purchase_receipt.pdf, camera_install_photo.jpg, camera_app_screenshot.png, sample_clip.mp4

2) Device: [GPS Pet Tracker] — Model: [Y], Serial: [67890], Purchase date: [mm/dd/yyyy]
   Attachments: tracker_receipt.pdf, tracker_app_location_screenshot.png

Monitoring/Installation: [Professional monitoring contract.pdf / Installer invoice.pdf]

If you need additional evidence (e.g., exported logs or installer contact), I can provide it quickly. Thank you for reviewing this request.

Best,
[your name]
[phone]
[policy number]
  

Common insurer questions — quick answers

• Do DIY-installed devices count? Often yes — if you can show they’re active and integrated. Some carriers give larger discounts for professional installs.
• How long before the discount starts? Usually on your next renewal or after verification; some carriers apply discounts mid-term once documentation is approved.
• Will sharing device data reduce my privacy? Many insurers request only proof of active status and isolated logs; avoid sharing full continuous streams unless you opt into a usage-based program.

Two quick case studies (realistic examples)

Case study A — Homeowner saved after leak-prevention upgrades

The Gomez family installed smart leak sensors, an automatic shutoff valve, and a professionally monitored alarm in November 2025. They submitted receipts, installer certificates, and sensor screenshots. The insurer approved a mid-term premium adjustment, reducing their annual home premium. Key win: the combination of automated water shutoff and professional monitoring qualified them for a higher discount band.

Case study B — Pet owner lowered pet insurance premium with GPS tracking + microchip

After their dog escaped twice, the Parkers bought a GPS pet tracker and ensured the microchip was registered. They provided tracker app location history and the microchip database confirmation. The pet insurer flagged faster recovery potential and offered a small premium reduction at renewal, plus a faster claims workflow should the dog become lost again.

Future predictions: what to expect in 2026–2028

Expect three developments to shape discounts moving forward:

1. Deeper API integrations — insurers will increasingly connect to device APIs (with your permission) to verify active status in real time, speeding approvals. See examples of edge-cloud telemetry integrating device APIs in telemetry integrations.
2. AI-driven validation — advanced analytics will validate footage and event logs to determine if a device meaningfully reduced risk (e.g., verified deterrence vs a false alert). Frameworks for assessing telemetry vendor trust are useful background: trust-score research.
3. Pet health & behavior discounts — pet insurers will use activity and fitness data from trackers to personalize premiums for chronic conditions and preventive care adherence.

Privacy and practical trade-offs

Sharing live device data can deliver bigger discounts but raises privacy decisions. Always read data-sharing terms and choose the minimum necessary data to verify device activity. Insurers commonly accept one-time evidence uploads rather than continuous feeds, so weigh whether a deeper program is worth extra savings.

Final checklist before you submit

• Receipt or invoice for each device
• Installation photo(s) with date visible (or video with narration)
• App screenshots showing device ID, online status, and recent activity
• Monitoring contract and first billing confirmation if applicable
• Microchip registration confirmation for pets
• Clear cover email using the sample template above

Takeaway — how to prioritise purchases for the biggest impact

If you want the fastest path to a meaningful discount in 2026, prioritize:

1. Professionally monitored alarm systems — highest discount reliability for homes
2. Smart leak detection + automatic shutoff — often reduces the most expensive single-type claim (water)
3. GPS pet trackers + microchipping — top combination for pet recovery and pet insurance savings

Ready to save? Your next steps

Start by making a short inventory of tech you already own — you may be sitting on an insurance discount device right now. If you’re shopping, choose devices that provide verifiable logs, professional monitoring options, and clear serial numbers. Then follow the documentation workflow above and submit everything in one organized packet.

Call to action: Download our free verification checklist (PDF) and a pre-filled submission template to speed approval — or get a custom review of your devices and policy eligibility from one of our pet & home insurance specialists. Click to compare carriers that actively reward smart-home and pet tech in 2026.