Is auto theft a problem for insurance companies? You might not think so, but stats (2 thefts for every 100 cars) show it has a big price tag and that means higher premiums for you.
Knowing a little more about the problem might be the first step in lowering your car insurance rates.
In Ontario, every year, there are 27,000 vehicles stolen, 40 people killed and 65 people injured due to auto theft. The cost is hundreds of millions of dollars directly and then more in police and court costs.
And it’s not just kids going for a joyride. It requires some sophistication and organization to successfully steal a car or truck and avoid getting caught. In a Global news report, Rick Dubin, vice-president of Investigative Services at the Insurance Bureau of Canada (IBC), said “In many cases, organized crime has a shocking list of the specific vehicles they want to acquire and they will target those specific vehicles and at the appropriate time, steal them.”
The rate of theft is declining, however the recovery rate of stolen vehicles is said to be declining also. Overall it might be more difficult to steal a vehicle, but thieves are targeting particular vehicles and being more effective at dealing with antitheft alarms and systems.
Any measures car owners can take to keep their cars safe and secure is welcome. Antitheft devices come in two forms: mechanical and electronic. Mechanical devices can’t be disabled through digital code manipulation or hacking, and electronic devices deter theft after the fact to make the car traceable.
If you use a mechanical aid along with your electronic alarm system, it should be enough to get a discount on your policy. And there are other things you can do to avoid having your car and its parts stolen such as by not parking in unlit areas with low traffic. That’s particularly so with Toyotas or Hondas which are frequent targets of thieves. Thieves are also looking for 4×4 trucks which are in demand in other countries.
Which cars the cheapest and most expensive to insure in 2014? Find out.