As the crisis of auto theft and its connection to organized crime worsens, insurance companies are compelled to act. Many have introduced a surcharge on drivers of most-commonly stolen vehicles. But there’s a way to remove the surcharge, depending on your insurer – install an anti-theft device in your car.
Related: Thefts drive up insurance premiums by 25% on most stolen vehicles
To protect your vehicle against car theft, here are a few options available:
Lastly, there are other GPS trackers such as Apple AirTags. While they don’t prevent car theft, they can also help in auto recovery, the same way they help in recovery of other items. People have quickly adopted the “hack” of leaving AirTags inside cars to track down their stolen vehicle. In addition to installing an anti-theft device in your car, it might be a good idea to add another layer of protection with GPS trackers. (It’s important to note, however, that if your car is stolen and you’re able to track it with GPS, under no circumstances should you try to recover your car on your own. Instead, alert your local enforcement agency and let them deal with it).
If you’ve installed any of the above devices on your car, you’re not only reducing your likelihood of auto theft, but you may not have to dish out money on any high-theft vehicle surcharge imposed by your insurance company.
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 RATESDOTCA 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.
One way insurance companies are recouping their claim losses is by adding a surcharge of up to $500 on the auto insurance policies of high-risk vehicles.
The main reason we’re seeing a rapid rise in auto thefts is that the crime is carried out by sophisticated, organized crime syndicates. It starts with thieves identifying low-risk, high-reward vehicles. Équité Association explains that this includes cars that have high profit margins when sold abroad, but the risk of prosecution is considerably low.
The Association complies an annual list of 10 most stolen vehicles in Canada, and their most recent report includes pick-up trucks, luxury cars, SUVs, and new car models.
If you drive any of the cars from the above-mentioned list, you can likely expect to hear from your insurance provider soon – the surcharge will be applicable when you renew your auto insurance policy.
Many insurance companies will remove the surcharge if you install Tag or other anti-theft device. Depending on your insurer, there may be additional incentives like free installation and/or a discount on your insurance premium.
Here are some known incentives offered by Canadian insurance companies:
Most insurance companies will require proof of purchase to remove the surcharge or confirm the offers. It's always a good idea to check with your insurance provider on what anti-theft technology and measures are eligible.
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.