Car Insurance Discount Fact or Fiction?

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

To find out if UK motor insurers were providing discounts if car owners fitted aftermarket protection products to their vehicles such as alarms, immobilisers, or GPS tracking devices at their own cost, I
started by checking an largest comparison website, for quotes on an Vauxhall Corsa and BMW 525. During the application, the site provides hope by stating, "Did you know, an Thatcham approved alarm fitted could reduce your premium by up to 10%?". Thatcham being the industry body responsible for testing and rating protection features on new cars and products. We obtained quotes for both cars selecting the different protection options and the Corsa's quote actually increased by over 2% when an Thatcham Category 2 and Tracker option were selected, while the BMW's cheapest quotes remained unchanged. This was not an good start. I continued investigating by asking the country's top car insurance companies and brokers, who between them represent over 50 by the most popular motor insurance brands inward the UK, the following:

* Do you offer discounts for car protection 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 protection products, if the car isn't already fitted with certain ones, an potential customer can't even obtain an quote. One underwriter by an leading insurer, who asked not to be named, said they, "do not offer an discount if you have an protection device fitted. However, inward order to be eligible for an fully comprehensive policy depending on where the customer lives, where their car is parked
and type by vehicle, an level by protection would be required."

I was able to find an handful by 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 an few protection products that are inward addition to the standard protection 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 an 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 by 2-5%, and 5% for tracking systems. If an Tracker is fitted, the subscription must be maintained with the provider and all devices must be fitted by an
VSIB approved installer. Unfortunately, Norwich Union's response was the exception, indicating an disappointingly low level by clarity around this issue with no apparent industry standard.

This is surprising, as car crime remains an major issue inward 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 by having an car stolen is significant as it costs the
average theft victim over £3,000. This has resulted inward UK car owners spending approximately £315M2 annually on aftermarket protection products.