Car Security as a Way to Save on Insurance
Many UK motorists are looking for ways to get the cheapest car insurance. However, there are a number of factors beyond your control that insurance companies use to price premiums. These factors include age, gender, driving record, criminal record, geographic location, and more.
There are some factors that drivers can control, however, and using these factors in your favor can save you a great deal of money on car insurance. One of the most controllable elements of insurance premium pricing is your car’s risk of theft. This guide will explain the basics of insurance pricing so you can understand how security measures can help lower your insurance premiums.
Car Insurance Basics
In order to understand how security measures can save you money on your car insurance it is useful to understand the way that car insurance companies set their prices. The primary thing to keep in mind is that everything a car insurance company considers is an attempt to ascertain the risk that they will have to pay a claim on your policy, and then set a price that allows them to make a profit in light of that risk, while also offering a competitive price.
The result of this situation is that the more things you do to mitigate the risk the car company will have to pay out a claim, the lower your insurance premium will be. Insurance companies determine how much of a risk you are based on a complicated interaction of different factors, some of which are listed above. For example, insurance companies charge more money to youths and inexperienced drivers because those groups are more likely to be involved in an expensive accident.
Many insurance policies, most notably third-party theft and fire and full comp coverage, offer protection in case of theft. The risk of your car being stolen is one of the factors that insurance companies price into these policies.
The Cost Saving Benefits of Security
Security measures decrease the risk of theft for your car, therefore, insurance companies will offer lower premiums for cars with better security than they will for cars that lack security features.
Some of the most popular security measures include security systems and immobilizers. A security system has an alarm that will sound unless it is deactivated, drawing attention to the car and making it less likely a thief will continue with their criminal operation.
An Immobilizer is a device that prevents the car from starting until it has been disabled. It will not deter someone from breaking in to your car, but it will prevent them from going anywhere in your car.
Another common security measure has to do with where a car is parked or stored. Cars that are parked on streets are at a higher risk of damage and theft compared to cars that are garaged or stored in a private driveway. This is part of the reason why geographic location can be a strong influence on the price of car insurance. If you live in a high crime area and park on the street, then the insurance company faces a higher risk of having to pay out a theft claim, and thus your insurance will be higher.
There are other things that drivers and savvy motorists can do to reduce the theft risk for their car. One easy fix is the car’s color. Certain colors of car are more likely to be stolen because they are more popular. A less popular color will reduce the risk that your car is stolen.
Still another way that drivers can reduce the risk of car theft is in their choice of car. Popular and expensive cars are more likely to be targeted by thieves, and therefore these cars will cost more to ensure. A standard and inexpensive car is a great way to reduce the risk of theft, keeping your insurance prices down.
As you can see, security plays a rather large role in car insurance pricing. You can take measure to enhance your car’s security, and doing so will help keep your insurance premiums on the low end. Some of these tactics can even save more pounds then they cost, resulting in enhanced security that pays for itself. Don’t hesitate to take advantage of these money saving strategies.