Vehicle Theft And How Insurers Are Responding To It
Vehicle Theft And How Insurers Are Responding To It
Vehicle theft is rapidly growing in Ontario, causing concern for car owners and insurance companies. This increase in car theft incidents is significantly affecting insurance prices. And approximately $125 of each premium is used to recover stolen vehicles. To tackle this situation, insurance companies are implementing various measures. These actions include raising premiums or encouraging car owners to install anti-theft deterrents to protect the most stolen vehicles and mitigate losses.
We have compiled a list of PrimeService Insurance partners and their strategies for addressing the situation. This information is continuously developing, save this blog and revisit for updates from other insurers.
Insurance Companies' responses to increased vehicle theft, and what it means for you:
Aviva General Insurance Company:
Effective October 1st, 2023, a $500 surcharge will be added to insurance premiums for high-theft vehicles. However, by installing Tag, a stolen vehicle tracking and recovery system, to enhance measures against car theft they will waive this surcharge and also offer an extra 20% discount on comprehensive coverage as part of the Theft Recovery Device Discount.
CAA Insurance Company:
In response to the rising expenses related to high-risk theft, CAA has introduced a fresh High Theft Risk Premium Surcharge on comprehensive or all peril coverage premiums for vehicles considered high-theft risks. This surcharge will take effect for new policies on July 15, 2023, and for policy renewals, on August 15, 2023. However, you can eliminate this surcharge by installing one of the following anti-theft device deterrents:.
- Steering wheel lock
- Brake pedal lock
- Wheel and tire lock
Chubb Insurance Company:
Chubb has also partnered with Tag. Eligible customers who own vehicles at a high risk of theft will receive an auto theft tracking device (Tag) at no extra charge. Chubb will send offer letters to clients whose vehicles are at high risk, informing them of this partnership. This limited-time offer is available until September 19, 2023. By installing this technology, you’ll not only gain the advantage of added security, but you’ll also be eligible for a 10% Anti-Theft discount on your comprehensive auto policy premium or All-Perils premium.
Gore Mutual Insurance Company:
Starting on July 1st, 2023, for new customers and from August 24, 2023, for renewals, an additional premium of $500 will be applied to customers with high-risk vehicles. To avoid the surcharge, you need to install Tag, theft prevention and tagging system. Moreover, starting from August 15, you can also enjoy a $100 discount on the installation cost of the Tag system at any Speedy Auto Glass location in Ontario.
Intact Insurance:
Intact has implemented a $500 high theft risk premium to insurance policies for high-risk vehicles commencing July 7, 2023. Like many other insurers, you can avoid this extra charge if you install the Tag system. You can visit any Speedy Auto Glass service center to install Tag. As a further incentive, Intact is also offering a 20% discount on the Comprehensive premium to those who choose to install the Tag anti-theft system. Using an alternative anti-theft system may still qualify for a 10% discount on your comprehensive insurance premium.
Jevco Insurance:
Jevco has partnered with Tag to offer the anti-theft device at a discounted price for clients with vehicles at high risk of theft. Impacted clients will receive a letter about these changes. To install Tag at the Jevco rate, contact the Speedy Glass service center and book an appointment. If you wish to add another anti-theft system besides Tag, please consult with your insurance broker for Jevco’s approval beforehand. If you opt not to install anti-theft devices, a premium surcharge of $500 will be applied to your policy upon renewal from October 13th.
If these surcharges impact your existing policy, your insurance company will send you a letter with full details. Each insurance company has different criteria to handle the situation. If your vehicle falls among the most stolen ones, it is advisable to contact your insurance broker for insights into how these industry changes may impact your coverage. A PrimeService broker can offer guidance during this challenging time.
It is best to be proactive and take preventive measures to avoid being a victim of car theft. Check out our last blog, where we share valuable tips to protect your vehicle against theft.
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