Car theft is a huge problem in Canada right now, so it makes sense you’d want to take measures to be proactive about your car’s security. One of the best ways to do that is to invest in anti-theft devices.
Which anti-theft device is the best at deterring auto theft? Which is the best for getting you a discount on your car insurance? Let’s explore.
Auto theft is a growing issue in Ontario
A car is stolen every 14 minutes in Ontario, and this issue continues to escalate as thieves become more sophisticated in their efforts. Due to a high influx of insurance claims for stolen vehicles, insurers have had to take measures to offset these costs, including raising rates for cars that are considered high-theft or that are in “high-risk” areas. This being is done to ensure that they continue to maintain a sufficient pool of funds to pay out claims for their policyholders.
One of the ways insurers are trying to fight auto theft is by incentivizing their policyholders to better protect their vehicles. They do this by discounting their insurance when approved anti-theft car devices are installed. While plenty of tools exist, few qualify for insurance discounts. One of the main systems insurers approve and will discount is Tag.
What is Tag and why do I need it?
Tag is a theft recovery system used to prevent theft and support police efforts in recovering stolen vehicles. For most insurance providers, Tag has become the favoured system for combatting auto theft. Insurance companies all have their own lists of vehicles that are considered high theft, which are makes and models that they experience the most theft-related claims for. Depending on the insurer, vehicles on those lists may be subject to a surcharge, which can be removed if the policyholder elects to install Tag or another approved system.
Here are some of the insurance companies we work with that are surcharging high-theft vehicles along with their approved anti-theft devices and any discounts that may be provided for them.
Please note that the data in the chart is accurate as of the publication date but is subject to change. For the most up-to-date info, check with your broker or insurance carrier.
| Carrier | Approved Devices | Discount Details | Surcharge |
| Aviva | Tag offers preferred pricing for Aviva customers with high-theft vehicles. | Aviva offers a 20% discount on comprehensive coverage for vehicles with Tag installed. The discount is available for three policy terms and proof of installation is required. | $500 surcharge for vehicles for vehicles in Ontario where owners haven’t installed Tag |
| CAA Insurance | Doesn’t participate in Tag, but offers high-theft risk premium surcharge removal if client installs eligible anti-theft aftermarket devices on a tiered system. | Removal or partial removal of high-theft surcharge on a tiered system. – After-market engine immobilizer for 100% surcharge removal – Other eligible preventative anti-theft device removes 50% of surcharge – Eligible preventative anti-theft accessories qualify for $500 reduction of surcharge | $1,500 surcharge to comprehensive or all perils coverage on impacted vehicles that do not have approved anti-theft devices installed |
| Chubb | Offers a discounted purchase of Tag at $249.95 + tax. Includes all associated fees for a five-year period. | Vehicles with Tag qualify for a 20% “superior” anti-theft credit to comprehensive/all perils premiums. Other approved anti-theft devices besides Tag qualify for a 10% standard anti-theft credit. | $500 surcharge is applied to comprehensive or comprehensive portion of all-perils premium for vehicles that are considered high-risk for theft. High-theft vehicles with superior anti-theft credit will not be subject to surcharge and may qualify for a discount. |
| Economical | Offers $100 off Tag installation or may be completely free of charge depending on the type of vehicle. | Anti-theft discount applies if a vehicle tracking and recovery system is installed and can be applied to any vehicle, whether identified as high-theft or not | $500 surcharge for vehicles on Economical’s high-theft list that is removed if Tag is installed. |
| Intact | Offers Tag installation at a discounted price of $249.95 | Tag, KYCS Locate, and Domino are all acceptable anti-theft devices eligible for 20% discount. Other professionally installed after-market anti-theft devices may qualify for a 10% discount. Factory installed disabling devices are not eligible for the discount. | $500 surcharge applies to all perils (comprehensive portion only), comprehensive or specified perils premium if vehicle is determined to be at-high risk of theft. Surcharge is removed once approved anti-theft system is installed. |
| Jevco | Offers a discounted Tag installation cost of $249.95. | KYCS Locate is also considered superior anti-theft tech alongside Tag and will qualify to remove surcharge. | Surcharge of $500 applies to all perils (comprehensive portion) or specified perils for high-theft vehicles. Surcharge is removed once Tag or similar system is installed. |
| Northbridge | Eligible insureds who own a high-theft vehicle in vulnerable areas will get a complimentary Tag installation or a preferred rate of $299.95 plus tax. | Private passenger vehicles equipped with approved anti-theft devices are eligible for a discount of 30%. Tag and KYCS Locate both qualify. | Surcharge of $500 on high-theft vehicles, which is removed upon installation of an approved anti-theft device. |
| Pembridge | Offering free Tag installation for the most stolen vehicles identified by Pembridge for existing clients. New clients receive $100 discount on Tag installation. Surcharge applies on renewal if not installed. | 10% discount on comprehensive coverage for vehicles with Tag. | High-theft vehicles without Tag will be subject to a high-theft surcharge. |
| Travelers | Tag installation is optional and the cost of installation is on the policyholder | Customers who install Tag will have a lower rate increase. Rates may still increase but will be approximately 20% lower on comprehensive/specified perils coverage when Tag is installed on high-theft vehicles. Individual rate increases vary by territory and vehicle. | No surcharge |
| Wawanesa | Tag and Domino are approved anti-theft devices. | A discount is available on the comprehensive or specified perils coverage premiums when Tag or Domino are installed. | A $500 surcharge is applied on a pro-rated basis for vehicles identified as high-risk. Comprehensive, all perils, or specified perils must be present for the surcharge to apply. Tag or Domino must be installed to waive the surcharge. |
How does Tag work?
Tag has three layers for how it works.
First, there is a physical etch on the front driver and passenger side windows that features the company logo. This acts as a visual deterrent for potential thieves, showing that the car is protected.
Second, the vehicle is electronically etched with “nanotags.” These are as small as a grain of rice and usually placed on parts of the car that are typically dismantled and then sold for parts by thieves. Each of these nanotags is encrypted and has its own unique Tag number.
Third, there are multiple water-proof tracking units that are designed with anti-jamming tech. These are installed on both the interior and exterior of the vehicle.
Tag’s installation takes around an hour and while the cost is around $400, some insurance carriers are offering it for free or at a discount. Even at its full value, the installation of Tag pays for itself in high-theft vehicles by removing the surcharge that many carriers have.
Are there other anti-theft devices that will qualify me for an insurance discount?
It depends on the insurance company. While Tag is the most widely approved and accepted means of theft deterrence, Domino and KYCS Locate are also commonly approved. Some companies will also offer smaller discounts (usually between 10-15%) for other approved aftermarket theft deterrence devices, like alarm systems.
From an insurance perspective, most carriers would consider the best device for anti-theft as one that can help track and recover stolen vehicles – namely Tag or its equivalents. This is because systems like Tag greatly increase the odds that police will recover a stolen vehicle, plus the visual identifiers can be a significant deterrent to prospective thieves. If theft is a concern of yours, consider investing in a system like Tag – or ask an insurance broker which devices they’d recommend.
How do I get cheap auto insurance even if I have a vehicle that is considered high-theft risk?
Work with an insurance broker, like the ones from Mitch. A broker can recommend all the best ways to save on your insurance, even if your vehicle make/model is on the high-theft list. They can compare quotes from different insurers to find you the best rate, plus suggest aftermarket anti-theft devices that can help you save (and deter thieves). Give us a call today for a free quote.
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