AXA research has revealed that investing in preventative measures to mitigate risks to people’s homes and cars could save UK households £209 a year – an aggregate total of £5.6 billion. Collectively motorists can save £4.96 billion and home owners £620.20 million per year by investing in risk prevention to further protect their vehicles and property. Investing more in flood protection is the most highly valued preventative measure.
The report by AXA, entitled ‘The Financial and Psychological Value of Risk Prevention’, estimates that the direct financial value of risk prevention measures equates to a saving of £209 per household in the UK.
The bulk of savings derived from reducing risk can be achieved by UK motorists, who could benefit from £4.96 billion a year in the form of lower premiums. Buying a vehicle fitted with in-built safety systems, such as autonomous emergency braking systems, could save as much as £1.5 billion in car insurance premiums and a further £1.3 billion from a fall in insurance claims. For younger drivers, taking out ‘black box’ insurance, policies of the sort available from P F Spare and Marmalade, could reduce premiums by up to 40 per cent, saving £629 per policy.
However, polling suggests that many UK drivers do not recognise the benefits of reducing risk. Almost half said they would not be worried if their car did not have an alarm. Over-65s were the most cynical, with 73 per cent saying spending money on a car alarm would not be worthwhile. One in three 18-24 year olds agreed with them.
AXA’s report also analysed the financial value of minimising risks at home, which could save consumers £620.2 million a year in home insurance claims and premiums, not to mention the emotional trauma of having to rebuild or replace parts of your home. Good housekeeping like repairing dripping taps and keeping homes adequately heated could bring down insurance claims by up to £387 million. Simple steps like not leaving spare keys outside the house or avoiding deliveries when there is no one at home, could lead to a reduction of burglary claims of at least £200 million across the country.
Make sure your car and home are properly protected by securing a free, no obligation quotation from P F Spare Insurance Brokers.