Crime and car insurance

Aside from it being a legal requirement, car insurance gives you peace of mind in case the worst should happen. Not only will your insurance company help you if you are involved in an accident, but they will also often pay out if your car is stolen – and with two million car thefts a year, covering yourself is very important. And it’s not just thefts that happen – you car could also be vandalised or burnt out. Read on to find out how crime affects your insurance policy.

Unfortunately, where you live greatly affects your car insurance. Car insurers use your postcode to find out exactly the kind of area you live in. This indicates the likelihood of your car being stolen or vandalised, and they will adjust your premium accordingly. This means that if, for example, you live in an inner city area, your car insurance premium will be higher than someone living in a rural area, because crime levels are higher in cities.

While you cannot change where you live, there are other ways to make sure that crime doesn’t push up your insurance premium.

One way to make sure your car is secure and to reduce your insurance premium at the same time is to have some security features fitted to it. The more secure your car is, the less likely you are going to be the victim of crime, and the less likely your insurance company are to have to pay out. This means the premium they charge you will be discounted.

Most cars manufactured since 1992 have a Thatcham approved car alarm fitted, but there are other ways to secure your car. An immobiliser will stop your car from being started until it is deactivated, and a tracker will enable police to know where your car is if it is stolen. Both these devices should reduce your premium.

There are also other ways to protect your car:

• security etching
• lockable fuel caps (which are standard on many cars)
• locking wheel nuts
• steering locks
• hiding your valuables
• removing in-car stereos when you park your car

Another way to protect your car and reduce your premium is to park it in a secure place. If you’ve got access to a garage or a drive then use it – don’t park on the road, where your car is much more likely to be subject to crime.

Also, if you drive your car to work try and make sure it is parked in a secure place all day, as this could also affect your premium. Even if this costs you money, it could be worth it in the long run, offset against the price of your insurance premium.

It’s also worth considering enrolling in a Vehicle Watch scheme at your local police station. You will be given a sticker that indicates the time of day when your car is usually in use. If a police officer spots the car being driven out of hours they will attempt to stop and question the driver.

When considering all these tips it’s worthwhile making sure the kind of cover you are applying for gives you all the protection you think you need. Third party will only cover the claims of other drivers, and so is no use in the event of your car being stolen. But, some comprehensive insurance can cover all kinds of instances, down to things like windscreen cracks.