Although vehicle crime has slumped from its highs in 1995, it is now rebounding due to the global economic crisis prompting an increased number of car insurance claims. So how can you keep your car secure and ensure that your car insurance premiums are low?

The credit crunch has had many unfortunate consequences from job losses to home repossessions, but few are as startling as the rising crime rate in England and Wales.

Statistics from 31 police forces report 5,572 more cases of acquisitive crime during the last four months of 2008 compared to the same period in the previous year. Among those figures has been an increase in vehicle crime which could prompt already rising car insurance premiums to surge even further.

According to the Home Office, vehicle crime has actually fallen by 57 per cent since its highs in 1995. However, even before the onset of the credit crunch it still accounted for a sixth of all crime and there were more than two million vehicle related thefts reported every year.

The global economic crisis should raise awareness among vehicle owners to ensure that their vehicles are safe – and as they bid to save money, it could be even more beneficial with savings to be made on their car insurance.

How boosting security lowers car insurance premiums

Car insurance providers assess premiums based on risks – the higher the risk you pose to the insurer, the higher your premiums are likely to be. Risk factors include your driving record, your occupation, how long you typically spend on the road and your purpose for being there and your proximity to vehicle crime.

Living in a postcode area with a bad reputation for car crime will see your premiums rise sharply. However, regardless of where you live the majority of car insurance providers will reward you if you take steps to reduce your risk.

This can be done in many ways – from fitting security devices to your car to parking in a garage overnight.

Car insurance premiums will also rise with every claim you make. If your insurer thinks you are prone to making small claims, forcing it to make continuous payouts, it will increase your payments accordingly. As a result it’s worth taking some smaller security measures, which may not directly earn you a discount, in order to reduce the chances of a crime occurring and therefore lowering the risk of you making a claim.

Which security measures can help keep car insurance premiums low?

Start by contacting your car insurance provider and asking which security devices it recommends that could earn you a discount. If you fit an insurer-approved alarm or immobilizer for example, you could earn a discount in the region of 10 per cent.

Remember that the alarm and immobilizer will only be as good as its installation so it could be worthwhile getting the Vehicle Systems Installation Board to fit it for you. Generally Thatcham security systems are preferred by insurers. Don’t let your efforts to secure your vehicle end there however – also consider a mechanical immobilizers such as a steering wheel lock or a gear stick lock.

Safer parking is another way to earn cheap car insurance. By parking in a garage overnight you could cut your premiums by around five per cent compared to parking on the road. If there is no garage available to you then at least park in a well-lit area.

Make sure you lock your car doors and windows whenever you leave the vehicle – even if you are just running into a petrol station to pay a bill, for example. If you leave your door open to thieves then you run the risk of having your car stolen and then having the car insurance claim invalidated due to negligence. The same applies to leaving the keys in the ignition, such as while you "warm the car up" in the morning time, or leaving keys on display.

It’s not just the vehicles themselves under threat, however – it’s what is inside them too. Satellite navigation systems are particularly attractive to thieves so if you have portable equipment take it with you, remove the cradle and suction pads and remember to remove any marks on the window too. Catalytic converters are another example of a newly popular item for thieves – so consider marking the metal shell so it could be easily traced back to you.

Make sure any valuables in the car are kept out of sight and consider installing enhanced protection glazing to prevent any ‘smash and grab’ vehicle crimes. Whatever action you take, keep your car insurance provider informed and it may reward you with savings.