Drivers facing $1,500 insurers’ surcharge if they don’t take 3 actions now – see if you have one of the affected models

DRIVERS are forced to pay more for insurance depending on the model they drive, and a decline in theft likely won’t decrease rates.

However, there are things you can do to increase your chances of a lower rate if you drive any of the hot models .

Getty

Getty

Getty

Canadian drivers have been paying more for insurance per month, with Quebec’s rate increasing the most after theft rates spiked in 2023.

Insurance companies collectively paid out $1.5 billion in auto theft claims, making up for a quarter of all claims made in the country.

In Ontario, thefts between 2018 and 2023 jumped up by 561%, with payouts to policyholders totaling over $371 million from $56 million.

Eight months into 2024, police departments in those provinces have reported a decline of around 17%, and Quebec’s rates by 36%, making them “cautiously optimistic,” according to Driving .

The outlet says that it means great strides are being taken in vehicle security and anti-theft measures, but it doesn’t mean insurance companies are ready to loosen their grip.

Debbie Arnold, a broker with Sound Insurance, said a lengthy process has to take place first.

“Rates have to be put before FSRA [Financial Services Regulatory Authority of Ontario] board to be approved,” she told the outlet.

“It takes time to gather stats, and time for that approval process. Right now, we’re just starting to pay for the 2022 – 2023 period where theft is concerned.”

Drivers of certain make and model vehicles were more prone to make theft claims over others.

Therefore, drivers with those models were charged with a $1,500 surcharge that other drivers didn’t have to pay.

The affected models from 2020 or newer were found to be:

• Chevrolet Tahoe
• Chevrolet Suburban
• GMC Yukon
• Land Rover Defender
• Land Rover Range Rover (Sport, Evoque, Velar)
• Lexus GX 460
• Lexus RX 350
• Toyota 4Runner
• Toyota Highlander
• Toyota Grand Highlander
• Acura RDX
• Ram 1500 Pickup
• Jeep Wrangler
• Vehicles with an MSRP of over $125,000, excluding EVs

To avoid paying the surcharge, Canadian companies want to see drivers taking action to prevent theft with three steps .

The three steps are:

1. Have a professional install an aftermarket immobilizer and provide proof of payment. Someone can install it themselves, though that would only remove half the surcharge.
2. Other systems can take the place of an immobilizer, like a battery kill switch, fuel cut-off, or a pin-to-start system. If an owner installs one of these systems, half of the surcharge will be removed.
3. A steering wheel lock, brake pedal lock, wheel, and tire lock, a keyfob signal blocker, or a retractable bollard can reduce the surcharge to $500.

The outlet continues to say that GPS devices on cars will not reduce the surcharge, as insurance companies would rather the vehicle not be stolen at all.

How to prevent vehicle theft

Here are 10 ways to avoid your car being stolen according to an auto insurance company:

1. Lock your doors. It makes it more difficult for thieves to access anything inside the vehicle.
2. Keep your keys on your person. With smart keys and fobs, a car can be unlocked if the key is close by. If the key is inside or on your person, it can’t be unlocked.
3. Don’t leave a spare key near the vehicle, as thieves know to look for them in common places like in a wheel well, under items in the driveway, or in the glovebox.
4. Keep windows closed. If a window is open, thieves can manually unlock the doors.
5. Park in well-lit areas, as it helps detour thieves if their actions are visible to passersby.
6. If your vehicle doesn’t have one, consider an anti-theft alarm system.
7. If you live in a high-crime area, consider an immobilizer device that utilizes a kill switch if the device doesn’t recognize an authorized key.
8. Consider a tracking device to be able to keep tabs on your vehicle’s location if it’s stolen.
9. Never leave valuables in the car, especially in a visible spot. Thieves know to look in the floor boards, passenger, or rear seats for valuables.
10. Double-check before leaving the vehicle that it’s secure.

Source: Allstate Auto Insurance

Not all insurance companies issue as high of a surcharge, though many charge drivers more if they opt out of anti-theft devices and systems.

One insurance tailored to high-end cars will give drivers a free TAG system, a GPS tracking device, if they insure an affected model.

However, if they choose not to have the device installed, they will implement a $500 charge.

As different insurance companies charge more for different models, it’s important to contact your broker about the model you drive and ask what measures can be taken to lower your rate.