Prevention of losses in car insurance will include any measures that the insured person takes to prevent damage, theft, fire, carjacking or accidents; it will include all perils that are covered in a car insurance policy. Should any of these perils result in a loss the insurance company will pay out on an insurance claim (if all conditions were met) so why take preventative measures when you pay for insurance?

First of all, if you are found to be grossly negligent the insurance company will refuse to meet your claim. Secondly, the more you claim on your car insurance the higher your premiums will become; if you claim too often the insurance company will simply decline to ensure you any further. All losses come from the insurance pool and the smaller the pool the higher the excesses and premiums will become. Insurance companies award clients who do not claim by giving them either no-claim bonuses or cash back bonuses.

Prevention of losses not only include anti-theft measures such as alarms or tracking devices, keeping your car in a locked-up garage at night – it also refers to driving safely, making sure your car is always in a roadworthy condition and many more. Insurance companies are trying to increase the security awareness of the public at large through advertising campaigns.