Car security is more than just protecting your vehicle—it can also help you save money on insurance premiums. Insurance companies assess the risk of theft when calculating policy costs, and cars equipped with advanced security systems like car alarms, immobilisers, and tracking devices are considered lower-risk. As a result, many insurers offer discounts for vehicles with Thatcham-approved security systems.
So, does installing a car alarm or immobiliser lower insurance premiums? The answer is yes, but it depends on the type of system and insurer requirements. While factory-fitted alarms and immobilisers are often recognised automatically, aftermarket installations must meet insurance standards to qualify for discounts.
In this guide, we’ll explore how car security systems impact insurance costs, how to check if your car already has a factory-fitted alarm or immobiliser, and when it might be time to upgrade your security system for better savings. If you’re looking to install a Thatcham-approved system or need emergency locksmith services, UK Auto Locksmith is here to help.
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How Car Alarm Systems and Immobilisers Affect Insurance Costs
One of the key factors insurance companies consider when calculating your car insurance premium is the risk of theft. Vehicles equipped with high-quality security systems, such as car alarms, immobilisers, and GPS trackers, are statistically less likely to be stolen, leading many insurers to offer discounted rates for cars with these systems.
Why Do Insurers Offer Discounts for Security Systems?
Insurance providers aim to minimize claims related to vehicle theft. A secure car is less likely to be stolen, which reduces the risk of a payout for the insurance company. To encourage drivers to use security-enhancing technology, they provide discounts on premiums for vehicles that have:
A factory-fitted or Thatcham-approved immobiliser
A certified car alarm system
A tracking device that improves vehicle recovery chances
If your car lacks these features, you may be paying higher insurance rates than necessary.
Factory-Fitted vs. Aftermarket Security Systems
Not all security systems qualify for insurance discounts. Some insurers only recognize factory-installed security features, while others accept aftermarket installations as long as they meet industry standards.
✔ Factory-Fitted Security Systems
✅ Installed by manufacturers before the car is sold
✅ Typically meet Thatcham Category 1 or 2 standards
✅ Automatically recognized by most insurance providers
✔ Aftermarket Security Systems
✅ Can be installed to improve a car’s security level
✅ Must meet Thatcham approval criteria to qualify for discounts
✅ Needs verification from insurers before receiving benefits
If you’re unsure whether your car security system meets insurance requirements, you can check your vehicle manual or contact your insurer directly.
Types of Car Security Systems That Impact Insurance Discounts
Not all car security systems qualify for insurance discounts. Insurance providers prioritize systems that effectively prevent theft, particularly those that meet Thatcham approval standards. Below are the key security systems that can help lower your insurance premium.
Car Alarm Systems
What It Does:
A car alarm system triggers a loud siren when unauthorized access is detected, acting as a theft deterrent.
How It Affects Insurance:
Some insurers only recognize Thatcham Category 1 alarm systems.
Aftermarket alarms must be professionally installed and meet insurance requirements.
Factory-fitted alarms are automatically recognized by most insurers.
What It Does:
A car immobiliser prevents the engine from starting without the correct key or key fob. It is one of the most effective security features, significantly reducing car theft risk.
How It Affects Insurance:
Factory-fitted immobilisers (installed in cars made after 1998) are widely accepted by insurers.
Aftermarket immobilisers must be Thatcham Category 2 approved to qualify for insurance discounts.
Examples of Thatcham-Approved Immobilisers:
✔ Ghost II Immobiliser (Advanced Keyless Security)
✔ Cobra A8510
✔ Scorpion X Immobiliser
GPS Tracking Devices
What It Does:
A GPS tracker allows a stolen vehicle to be traced and recovered quickly, reducing theft-related losses.
How It Affects Insurance:
Many insurers offer discounts on vehicles with Thatcham Category 5 or 6 trackers.
Some policies require a tracker for high-value vehicles.
Examples of Thatcham-Approved GPS Trackers:
✔ Tracker S5 Plus
✔ SmarTrack Protector Pro
✔ Vodafone Protect & Connect
When to Upgrade Your Car Security System for Better Insurance Savings
While many modern vehicles come with built-in security features, not all security systems qualify for insurance discounts. If your car lacks a Thatcham-approved car alarm, immobiliser, or tracker, upgrading your security system can lower your insurance premiums and protect your vehicle from theft.
Your Car Lacks a Factory-Fitted Alarm or Immobiliser
If your car was manufactured before 1998, it likely does not have a factory-fitted immobiliser. Vehicles without an immobiliser are at higher risk of theft, leading to higher insurance costs. Installing a Thatcham-approved immobiliser can make a significant difference in your insurance eligibility and savings.
Your Insurer Doesn’t Recognize Your Current Security System
Some insurance companies only accept specific brands or Thatcham-approved security devices. If your car has an alarm or immobiliser but it’s not Thatcham-certified, your insurer may not offer a discount.
Your Car Is a High-Theft Risk Model
Certain car models are more frequently targeted by thieves, increasing insurance costs. If your vehicle is on an insurer’s high-risk list, upgrading your security system can help lower your premium.
So? Do Car Alarm Systems Really Lower Insurance Costs?
Car alarm systems and immobilisers play a crucial role in reducing vehicle theft and can help lower car insurance premiums. However, not all security systems qualify for insurance discounts—Thatcham-approved alarms, immobilisers, and tracking devices are the most widely recognized by insurers.
If your car lacks a factory-fitted security system, upgrading to an approved immobiliser or alarm can significantly enhance protection and reduce insurance costs. Additionally, for high-risk vehicles, installing a GPS tracker may be required by some insurers.
Before making a decision, check with your insurance provider to see which security systems qualify for a discount. If you need to install or upgrade a Thatcham-approved security system, UK Auto Locksmith offers professional installations and emergency car lockout assistance to keep your vehicle secure.
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Yes, but only if they meet insurance-approved security standards. Most insurers offer discounts for Thatcham-approved car alarms, immobilisers, and GPS trackers, as they reduce the risk of theft. Factory-fitted security systems are often recognized automatically, while aftermarket installations must meet Thatcham certification to qualify.
You can check if your car has an alarm or immobiliser by:
• Looking in the vehicle manual.
• Checking for a dashboard security indicator light.
• Contacting the car manufacturer or dealership.
• Searching for your car model on the Thatcham database.
If your car lacks a security system, installing a Thatcham-approved alarm or immobiliser can improve.
Most insurance providers recognize the following:
• Thatcham Category 1 – Combined alarm & immobiliser (best for insurance savings).
• Thatcham Category 2 – Standalone immobilisers.
• Thatcham Category 5 & 6 – GPS tracking devices (ideal for high-value vehicles).
If your car has an aftermarket security system, check with your insurer to ensure it qualifies for discounts.
You should consider upgrading if:
• Your car was manufactured before 1998 and lacks a factory-fitted immobiliser.
• Your current alarm or immobiliser is not Thatcham-approved.
• Your car is on an insurer’s high-theft risk list.
• Your insurer requires a GPS tracker for insurance coverage.
Upgrading to a Thatcham-certified security system can lower premiums and improve vehicle safety.
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