Car protection, theft prevention, and reduced insurance premiums: Experts suggest installing tracking devices and parking garages
Seeking ways to reduce car insurance costs is often a key concern for drivers. In the current situation where theft is rampant and insurance costs are rising, it is particularly important to find ways to reduce costs.
According to the Canadian News Agency, experts have stated that installing tracking devices and parking in garages is one of the actions that can help reduce insurance costs.
Generally speaking, many factors determine insurance premiums - such as driving records, vehicle type, and location, "said Matt Hands, Vice President of Insurance at Ratehub.ca website. But as car theft cases increase, some car owners may face insurance surcharges.
As a consumer, when you see the price, you may be surprised to find, 'Wow, this is too expensive,' "he said An excellent agent will explain to you the reasons behind the price, which is largely beyond their control
The astonishingly high insurance costs are likely to occur on vehicles that are more prone to theft, as insurance companies need to pay more compensation. According to data from the Equite Association, an insurance fraud prevention organization, the three most frequently stolen cars in 2022 are the Honda CR-V, the latest Dodge RAM 1500 series, and the Ford F150.
In some cases, insurance companies refuse to provide insurance for these specific vehicles. Other companies may charge higher premiums, but there are still ways to lower some of the fees.
Car owners may consider installing a non original tracking device called a tag system.
This type of label can help retrieve stolen vehicles while reducing the risk of vehicle theft, "said Liam McGuinty, Vice President of Strategy at Insurance Canada.
It reduces the risk of claims because (the vehicle) can be retrieved, "McGuinty said In addition, some non original tracking devices are labeled on the car, so they can have a deterrent effect
However, the cost of such tracking devices is approximately CAD 400, which is an additional expense that car owners need to bear on their own, Hands also stated. However, some insurance companies are willing to offer discounts or reimburse part of the equipment costs to encourage faster adoption of this method.
Hands expects these discounts to be between 10% and 30%.
Some insurance companies may also lower your premiums when installing tracking tag systems. Other companies will charge additional fees to car owners who have not installed the device. He stated that this additional fee could be as high as CAD 500 per year.
But experts warn that even for the most frequently stolen vehicles, a tracking device may not necessarily lower insurance costs.
McGuinty said, "Every insurance company operates differently
The insurance industry does not have a fixed set of response standards for whether installing non original tracking equipment will receive special premium discounts
However, it may indeed prevent potential car theft - which could affect future insurance premiums as drivers who have had their vehicles stolen in the past may have to pay more over time.
Hands explained that even if insurance companies do not offer discounts or reimbursements, taking preventive measures is still beneficial for car owners.
The longer your records remain without claims, the better your insurance pricing will be, "he said.
In addition, searching for better insurance transactions is also a crucial cost saving step.
Some suggestions to prevent car theft and reduce insurance premiums also include parking the car in the garage as much as possible and locking the steering wheel with a device when parked outdoors; Store the car keys in a Faraday bag, which is an aluminum foil lined bag that can block wireless remote control signals.
Hands said that people considering buying a new car should look at the most frequently stolen models and check if the vehicles they may have purchased are on this list.
If you are looking for a practical vehicle, choosing a vehicle that is not on this list may be something you need to do, as it will help you save money in the long run, "Hands said.
Overall, it is quite difficult to significantly reduce premiums, mainly because the industry is regulated and any insurance company attempting to increase or decrease rates requires approval from rate regulatory agencies, "McGuinty said.
Source link:
https://www.ctvnews.ca/autos/insurance-is-high-on-frequently-stolen-vehicles-here-s-how-to-reduce-your-premiums-1.6847016