Ontario drivers facing high car insurance rates due to an increase in vehicle thefts can take certain measures to significantly reduce their premiums. According to Matt Hands, vice president of insurance at Ratehub.ca, the soaring number of car thefts has directly impacted insurance costs, particularly for the owners of the top three most stolen vehicles in 2022: the Honda CR-V, Dodge RAM 1500 series, and Ford F150s, as reported by the Équité Association.
Installing aftermarket tracking devices, known as tag systems, can play a dual role in both aiding vehicle recovery and reducing theft likelihood, explains Liam McGuinty, vice president of strategy at the Insurance Bureau of Canada. While a tag system installation may initially cost around $400, some insurance companies offer discounts or partial reimbursements to encourage its adoption, potentially lowering insurance premiums by 10% to 30%.
However, despite the potential for significant discounts, not all insurers automatically lower premiums for vehicles equipped with tracking systems, and some may still charge higher rates for more theft-prone models. It’s important for vehicle owners to communicate with their insurance brokers, like Steve Henderson of Youngs Insurance Brokers Inc., who assesses options across multiple insurers to find the most favorable terms.
Additional tips for reducing car theft and insurance costs include parking in a garage, using a steering wheel lock, and storing car keys in a Faraday pouch to block signal transmission from key fobs. Hands also advises prospective car buyers to consider models that are not frequently targeted for theft, which can help keep insurance costs lower over time.
While individual measures may offer some savings, the overall ability to reduce insurance premiums substantially is constrained by industry regulations that require rate changes to be approved by regulators. Nonetheless, taking proactive steps to secure vehicles can benefit drivers by maintaining a claims-free record, which is favorable for long-term insurance pricing.