Over 90% of UK insurers are not offering car insurance discounts for security products |
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| By: CarSecurityUK.com | ||||
CarSecurityUK.com Managing Director Kelvin Mangaroo said: “Car crime remains a major issue as 1 car is stolen every 3 minutes and there were over 1.3 million break-ins or car thefts in England and Wales last year.[2] It’s simply baffling that many insurers are resistant to offering consumers discounts for fitting aftermarket car security products which would encourage and incentivise drivers to further protect their vehicles.” Consequently, it comes as no surprise that £318M is spent annually in the UK [3] on car security products, which ultimately, also benefits insurers. This is the reasoning that CarSecurityUK.com is campaigning for product related discounts and greater transparency within the industry so that consumers can understand, what, if any discounts they may be eligible for, by enhancing their vehicle’s security. So why aren’t insurers doing this? A major reason is that the UK motor insurance industry is a hugely competitive market. The Association of British Insurers (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 which equates to £18.7 million paid out in claims every day. This leaves insurers in a cutthroat business. Norwich Union was the only insurer offering reduced premiums for fitting aftermarket security products willing to share details, stating they offer savings of up to 5% for immobiliser and tracking systems. Norwich Union was the exception, indicating a disappointingly low level of clarity around this issue with no apparent industry standard. One underwriter of a leading insurer, who asked not to be named, commented: “We 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 what type of vehicle, a level of security would be required.” Another underwriter, explained: “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 any discounts offered.” Derek Fawell, ABI Policy Advisor for motor insurance, commented: “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.” Mangaroo continued “The car insurance market has never been so competitive for providers, particularly with the continued success of comparison websites such as Moneysupermarket.com and uSwitch making it ever easier for the consumer to shop around. We believe that security related car insurance discounts are a win-win for both the insurer and the consumer. Providers would have the potential to attract more business as well as reducing claims, while consumers would get a better deal on their annual insurance bill, helping to subsidise some of the product’s cost. In fact, the only losers would be the criminals whose lives would be made that much more difficult.” * 62 motor insurers were included in the study [1] Home Office figures [2] Home Office, British Crime Survey 2006/07, in England and Wales [3] Vehicle Security Market Report 2007, Key Note Publications Ltd, Feb 2007 |
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| Article Source: http://yourfinance.co.za | ||||
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