Which discount is offered for equipped vehicles with electronic immobilization?

Prepare for the IBABC Automobile Insurance Exam with our multiple choice questions with explanations and hints. Study effectively with our engaging quizzes and ensure you're exam-ready!

The correct answer, which refers to the discount for equipped vehicles with electronic immobilization, is known as the Passive Electronic Immobilizer Discount. This discount is specifically designed to reward policyholders whose vehicles are equipped with electronic immobilization systems, which help deter theft by preventing the vehicle from being started without the proper key, fob, or electronic signal. The presence of such technology reduces the insurer's risk of loss due to theft, which is why they offer a discount to encourage safer vehicles.

This type of discount is important in the context of automobile insurance because it aligns with the insurer's goals to minimize claims related to vehicle theft. Insurers are more inclined to support and incentivize the use of safety and anti-theft technology, seeing it as a proactive measure for risk management.

The other options represent different types of discounts that are not specifically related to electronic immobilization technology. For instance, the Safety Technology Discount generally applies to a wider range of safety features beyond just immobilizers, the Low Mileage Discount rewards drivers who use their vehicles less frequently, and the New Resident Discount is aimed at attracting new customers to the area rather than focusing on vehicle security features.

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