Installing an anti-theft device could save you money on insurance

Auto theft has been an ongoing crisis across Canada for several years now. While 2024 saw a 19% decline in auto thefts as a result of direct intervention from police agencies, government investments, and increased education in drivers on the part of insurers, the crisis continues to evolve. Even still, auto theft losses account for $1 billion in claims each year. 

In its latest list of Most Commonly Stolen Vehicles in Canada, Équité Association has declared the 2021 Toyota Rav4 the most stolen car in the country, with a total of 554,086 cars stolen last year. 

As insurance companies across Canada continue grappling with the losses, they have introduced a surcharge on drivers of most-commonly stolen vehicles. Some insurance companies charge up to $1,500 for high theft vehicles without anti-theft devices such as Tags or engine immobilizers. 

What's considered a commonly stolen vehicle? 

Each insurance company differs in how they approach high-theft vehicles. 

Some insurers require anti-theft devices on cars that appear on the official list of most commonly stolen vehicles from Équité Association (see below for the list). Some may automatically place a surcharge on cars valued over $125,000 based on their Manufacturer's Suggested Retail Price (MSRP). 

Some have their own list based on their internal risk modeling, while others don't publish a list all, instead opting to place a surcharge of vehicles within specific high-theft postal codes. 

How can you avoid paying the surcharge if you own a model that is considered high theft? 

Thankfully, if you receive a surcharge for owning a car that is considered commonly stolen by your insurer, there's usually a way to reduce the charge, or to remove it entirely. 

For some providers, it's as simple as installing a Tag tracking system (more on those below) and providing your insurer with the Tag serial number and installation date. 

Other companies offer multiple ways to reduce the charge or remove it entirely. 

For example, one of Canada's major insurers will take off 25% of the fee if the driver purchases a steering wheel lock, brake pedal lock and wheel and tire lock. They will remove 50% of the fee with the installation of an ignition cut-off system or a two-factor authentication system; and they'll waive the full $1,500 surcharge entirely with the installation of an after-market engine immobilizer that fits specific requirements. 

The best way to find out how to remove a high-theft vehicle surcharge is to speak with your broker about it. 

Related: Thefts drive up insurance premiums by 25% on most stolen vehicles

What anti-theft devices can you install?

To protect your vehicle against car theft, here are a few options available:

• Aftermarket engine immobilizer: An aftermarket engine immobilizer is an anti-theft device that fully deactivates the engine control and fuel control units when the car is not in use. It can be disarmed with a simple PIN code or a sequence programmed on the car's vehicle buttons. In order to remove the high-theft vehicle surcharge, some insurers will require a Certificate of Installation from a professional technician. 
• Ignition cut-off system: Often known as an ignition wire kill switch, the ignition cut-off system is a discreetly hidden switch located in the ignition wiring system that can turn off power from flowing to the ignition and keep the engine from starting. 
• Multi-factor authentication (MFA): Think the multi-factor (or two-factor) authentication security method that protects fraudsters from getting into your bank account or email inbox. MFA is an increasingly popular anti-theft system that requires drivers to verify their identity with both their key fob and a separate code keyed into a pad mounted to the car (or, increasingly, a fingerprint) before getting into the car. 
• Steering wheel lock: A steering wheel lock or club, as the name suggests, locks in the steering wheel, preventing thieves from driving off with the car. Basic models feature a metal rod that locks in the handlebars and prevents it from budging at all. There’s also a lock that connects the steering wheel to the brake pedal, making the vehicle immobile.  
• Tag technology: The Tag system is a wireless tracking device that a trained technician installs throughout your vehicle. It uses electronic identification placed in different parts in the car to help recover your vehicle — even if a thief snaps the vehicle’s cellular antenna or cuts its internal wires. 

Read more: How the trade war could drive up auto thefts and insurance costs in 2025 | Rates.ca

The impact of auto-theft on the insurance industry, and what it means for you

Rising vehicle theft not only poses more risk to individual drivers, but also puts added pressure on insurance companies to intervene and avoid replacing high volumes of vehicles for insured customers.

“Insurance premiums are determined by losses,” says Daniel Ivans, insurance broker and Rates.ca expert. “When losses increase, insurance companies need to account for those losses, and future trends by increasing premiums.”

And if one particular loss – such as auto theft – occurs often, it’s not uncommon for insurance companies to adjust premiums to account for those claims.

Insurance costs include replacing stolen or repairing damaged vehicles, healthcare if the vehicle owner is injured, and judicial costs.

Top 10 most stolen vehicles for 2025

Here’s Canada’s top 10 most stolen vehicles: 

Review your auto insurance coverage to protect against theft

If you're thinking of buying a new car on the commonly stolen vehicles list and are concerned about being charged a high-theft surcharge, the best thing to do is ask your insurer if your model is on their high-theft list, and how their surcharge works (if they have one). 

Note any important details, including specific brands of anti-theft devices they recommend and appproved auto body shops to ensure proper installation. 

Properly securing your car against theft doesn't just save you a surcharge — with theft rates still at historic highs, any preventative action you take could save you from even bigger financial calamity. 

To better protect yourself against auto theft, consider adding comprehensive insurance, all perils, or specified perils coverage to your policy. A standard car insurance policy won’t cover repairs or vehicle replacement after a non-collision loss like theft. So, even if your vehicle is recovered with Tag technology, repairing any damage that results from the theft would require more extensive coverage.

Before adding coverage to your policy, it helps to compare car insurance rates to find the provider that can offer you the lowest premium. And, if you hope to switch to a provider offering free Tag installation, comparing rates from companies taking part in the initiative can narrow down your search.