It seems like a very straightforward concept. Someone buys a new car and purchases an alarm system to protect their brand new vehicle. Their investment enhances the vehicle's security, which also benefits the car's insurer as it less likely to get stolen, resulting in lower car insurance, right? As I found out, in most instances, this is not the case.

To find out if UK motor insurers were providing discounts if car owners fitted aftermarket security products to their vehicles such as alarms, immobilisers, or GPS tracking devices at their own cost, I started by checking a largest comparison website, for quotes on a Vauxhall Corsa and BMW 525. During the application, the site provides hope by stating, "Did you know, a Thatcham approved alarm fitted could reduce your premium by up to 10%?". Thatcham being the industry body responsible for testing and rating security features on new cars and products. We obtained quotes for both cars selecting the different security options and the Corsa's quote actually increased by over 2% when a Thatcham Category 2 and Tracker option were selected, while the BMW's cheapest quotes remained unchanged. This was not a good start.

I continued investigating by asking the country's top car insurance companies and brokers, who between them represent over 50 of the most popular motor insurance brands in the UK, the following:

    * Do you offer discounts for car security products?
    * If so, which manufacturer and products are these?
    * What corresponding discounts can drivers receive?
    * Are there any limitations or conditions surrounding these discounts?

Overwhelmingly, the answer was 'No' to our first question, which rendered the remaining ones redundant. Furthermore, many insurers stated that not only do they not offer discounts for car security products, if the car isn't already fitted with certain ones, a potential customer can't even obtain a quote.

One underwriter of a leading insurer, who asked not to be named, said they, "do not offer a discount if you have a security device fitted. However, in order to be eligible for a fully comprehensive policy depending on where the customer lives, where their car is parked and type of vehicle, a level of security would be required."

I was able to find a handful of insurers who confirmed they offered product related discounts, however, they wouldn't disclose any details stating the reductions could be removed at anytime. As another underwriter, who chose not to be named, explained, "we currently offer some discounts for a few security products that are in addition to the standard security on the vehicle. However, we do not wish to promote these discounts at the current time as they are shortly due to be reviewed with a view to reducing or removing them. I am unable to confirm what discounts we offer, on what products or whether we have any restrictions."

Norwich Union was the only insurer who answered all our questions stating they offered discounts on aftermarket immobilisers of 2-5%, and 5% for tracking systems. If a Tracker is fitted, the subscription must be maintained with the provider and all devices must be fitted by a VSIB approved installer. Unfortunately, Norwich Union's response was the exception, indicating a disappointingly low level of clarity around this issue with no apparent industry standard.

This is surprising, as car crime remains a major issue in the UK, as there were over 1.3M1 vehicle thefts and break-ins last year , with the latter actually increasing by 1% year on year. Furthermore, the financial impact of having a car stolen is significant as it costs the average theft victim over £3,000. This has resulted in UK car owners spending approximately £315M2 annually on aftermarket security products.

The latest British Crime Survey from the Home Office reports that these products are effective as a car can be up to 70% less likely to be stolen if fitted with one. Also, many products are approved by Thatcham, which is jointly owned by the car manufacturers and insurance industry, meaning insurers have effectively approved the products themselves.

A few insurers referred me to the ABI (Association of British Insurers) and said I should check this issue with them. Derek Fawell, ABI Policy Advisor for motor insurance, said that "the ABI is only involved in providing the group insurance rating on new vehicles, which takes into consideration the safety and security of the car as it is delivered from the factory, however, each individual insurer has the power to offer after market discounts as they deem necessary."

So why aren't insurers doing this? A major reason is that the UK motor insurance industry is a hugely competitive market. The ABI reports that it accounts for almost a third of all general insurance in the UK where £10.3 billion in net premiums were written in 2006. In addition, it isn't the most profitable line of insurance, as more than one in six private car drivers make a claim each year, and this equates to £18.7 million paid out in claims every day! This leaves insurers in a cutthroat business needing to maintain their revenue and margins targets while retaining or growing market share, which is a very tricky matter.

Nonetheless, offering discounts for fitting car security products would be a way to differentiate an insurer's offer in a highly saturated industry and attract more customers, help to subsidise some of the product's cost, put more secure vehicles on the road and make the lives of thieves that much more difficult. Furthermore, in the long run, it could increase the insurer's profitability through less claims and write-offs, while more of the cars they insured would have better protection.

I believe car owners should receive discounts on their insurance if they fit additional security products to their vehicle at their own cost, as their investment ultimately benefits the insurer. In the case where reduced premiums are offered, there should be greater transparency on the specific products and the amount of the resulting discount. This would make it easier for car owner's to make an informed decision when looking to protect their vehicles or purchase car insurance.

So the next time you're looking for car insurance or a security product, ask your insurer if they offer discounts for fitting them, and if so, which product and the amount of the resulting discount. It's a straightforward concept that is currently mostly fiction and needs to become fact.

 

Imagine this! You are walking down the market place checking out the variety of rates for a box of apples. You scout the market on foot, personally checking with all vendors who have apple carts on display. The entire process takes you roughly about an hour as the market is spread out over a large area. You pass by those that quote a high rate and mentally check those that offer the sum that’s nearest to what you can pay. At the end of the exercise you zoom in to the vendor who offers the best quote for the best quality as well. And then you pick your lot. Something similar happens when you shop around for the best free quote in car insurance.

Let us first understand what insurance is. Answer: Insurance is basically an agreement you make with an insurance company to secure yourself or your belongings in case of any eventuality. The insurance is payable in cash, the amount which is pre-decided between the insurance company and the insured. The insured pays a premium to the insurance company regularly towards this insurance cover.

Car insurance is insuring the car that you or your family/ employees would drive. All car insurance companies provide quotes for your cars on request and you can get free quotes by spending some time looking around yourself. Unlike going about the car insurance market on foot as described, there are easier ways to obtain some good free quotes.

Obtaining free quotes for your car insurance is something like this. All vehicles by law are required to have insurance. If your car is not insured you cannot drive it. Therefore you need to get a car insurance done at the earliest.

Now, how do you go about getting your quotes?

In today’s internet savvy generation, car insurance quotes can be obtained free over the net. You can also find loads of information about numerous car insurance companies that operate in your district and those car insurance companies, which offer the best and free quotes as well. This helps cut any costs that may be associated in obtaining car insurance quotes from several car insurance agencies.

Let’s assume you need a car insurance free quote today. What do you do? Simple, as a first step you log on to the net and run a search for car insurance free quote in your district. This will throw up several web links. You have to click on them to read and understand what the car insurance agencies offer, their free quote requirements, their policy and procedures and such information.

When you are scouting around for the relevant car insurance free quote information you will need some specific information regarding your car. To start with you need to provide your personal contact information which would include name, contact numbers, email address, car driving license number and since when you have it etc.

Then you will need to fill in details about your car like the any current car insurance policies you are holding and their term. This section will probe your car history (any accidents, tickets or violations), the car make and model (4 Wheel drive or sedan), your specific use of the car (to work/ cross-country), and details like if the car has airbags, security alarm system etc etc.

You will also need to clearly mention in your quote requirements what is the coverage amount you need like a full cover or liability only. Also required by the car insurance companies is the bodily limit injury amount you are seeking. Once you submit these details related to car insurance, your quote will be on its way.

All you need to do is await a number of free quotes from several car insurance companies. Once you have shopped around among the best car insurance companies in your district to get the best free quote, select one. You have to try to get the maximum car insurance benefits for your free quote. If you find that you are not happy with the rates in the free quotes that the first lot of car insurance companies have sent you, there are ways to get even better free quotes.

Free quotes depend on the information you put in on the car insurance websites. You can reduce the premium amounts mentioned in the free quotes drastically if you do any of the following and mention the same in your free quote request. You park your car inside a garage. This eliminates damage and theft. You set a ‘break in warning alarm system in your car. You alone drive your car instead of several persons. You don’t have a history of self-caused accidents or violations. You don’t need a car hire clause when your car is taken by the insurance agency for any repairs and many such important points.

So you see, you can get fantastic free quotes from reputed car insurance agencies for your car without moving out of your home.