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Burglar alarms hardly impact home insurance premiums

24 July 2008 / by Daniela Gieseler
Fitting a property or vehicle with a burglar alarm or other security measures will not necessarily result in lower car or home insurance premiums, new research from reveals.

The price comparison site assessed the effect of adding an alarm on car and home insurance quotes from different providers, and found that those hoping to cut the cost of their cover by adding additional security features may find these are not worth their while.

They might serve home or car owners well to stave off burglars, but will have hardly any impact on insurance premiums, the research shows. While the average saving on home insurance is just £5 for a whole year, a car alarm would knock off a meagre £1.70 from your annual car insurance premium.

Only half of the home insurance providers researched lowered their premium for an alarm system, whereas all but two car insurance companies offered no discount at all. Only the AA came up with considerable savings on their quote with an added car alarm.

Paul Baxter, director of commercial and partnerships at, commented on the findings: "Hardly a day goes by when we don't see a story about crime in the papers and it is therefore not surprising that people are doing more and more to feel safer in their homes and to protect their belongings."

He advises consumers to assess realistically if the cost of fitting the alarm does not outweigh potential savings on insurance premiums: "Installing alarms to your property or car will no doubt go some way to offering you peace of mind, but if you are planning on saving money on your insurance premiums you should make sure you check your options first."

In some instances, he adds, insurances are a must: "If you own a high value car for instance, some insurers may insist on an alarm to insure the car. It is definitely worth running a range of quotes on an insurance comparison site prior to fitting any alarms to make sure you are aware of the best insurance options for you, whether this is with or without added alarms."

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