TORONTO
Drivers of vehicles considered high-theft risks by insurers are often given an ultimatum to either install specific anti-theft devices or pay annual surcharges that can reach $1,500.
"If you really want the car, like, the No. 1 car on the top stolen list, and it's going to be a giant surcharge, definitely check into the anti-theft and see if it brings it into your budget," said Morgan Roberts, vice-president of Ratehub.ca's in-house property and casualty brokerage RH Insurance.
Experts say the economics of installing a device often makes sense, as the cost can be lower than the surcharge.
Tag Tracking and KYCS Locate systems, which many insurers insist on, can cost about $400, according to Debbie Arnold, a business development manager at Sound Insurance Services Inc.
Immobilizers, which prevent a vehicle from starting without the correct key, often range from $850 to $1,500, Arnold said.
Roberts said installing an anti-theft system is also important because some insurers will not offer a waiver of depreciation on a new car without one, meaning a payout after a theft would be for the depreciated value, not the purchase price.
She added the devices offer peace of mind by providing an extra tool to help recover a stolen vehicle.
However, Arnold noted some clients prefer to pay the surcharge.
"I have a client that refuses to have any anti-theft device installed because if his vehicle gets stolen, he doesn't want the vehicle back because he doesn't know what the thief has done in that vehicle or done to that vehicle," she said.
Roberts stressed that drivers must install a device approved by their specific insurer to avoid the fee.
"Don't just get any anti-theft device," she said. "Make sure it is the one that's approved by the insurance company that you're with."
How to check your vehicle's status
Arnold urges drivers to call their insurance company or broker for a quote before buying any vehicle, as classifications vary.
She said a car considered a high-theft vehicle at one company may not have that classification at another because each insurer relies on different data.
She said hybrid and electric vehicles are generally not considered high theft because they create more work for thieves and are not as coveted on criminal markets.
By comparison, SUVs and pickup trucks tend to be on most stolen lists and often generate higher insurance fees.
Some insurers will not offer collision or comprehensive insurance for vehicles they consider as having a high likelihood of being stolen, Arnold said.
To lower overall insurance costs, she recommended bundling home and auto insurance together and keeping all household vehicles with one carrier.
Enrolling in an insurer's telematics program, which monitors driving habits, can also lead to savings.
Arnold has seen drivers with safe habits shave up to 30 per cent off their insurance costs through such programs.
Auto theft rates might be on the decline in Canada, but high claims costs and the ongoing tariff dispute mean insurance rates have yet to drop. e2gold.ca reported in November that Ottawa extended and expanded a tariff relief program for firms importing U.S. goods.
This story was written by the e2gold.ca newsroom from reporting by BNN Bloomberg, CTV News and Yahoo News. Quotes are checked word for word against that reporting.