Impact of Anti-theft Device in Car Insurance

With the rising theft cases in India, installation of anti theft devices has become a must in many locations

Possessing a car is a dream come true for many. To safeguard this precious asset many vehicle owners are opting to install an anti-theft device which instantly alerts them in case of car theft. With the rising theft cases in India, installation of anti-theft devices has become a must in many locations, thus coming in handy in case of car theft. Moreover, the device also helps you avail discounts on car insurance premium. Read on to know all about the impact of anti-theft devices on car insurance.

Anti-theft device and Car Insurance

An anti theft device is an electronic device that keeps your car secured against any theft. With the use of technology, the vehicle owner is instantly notified. The device may come in the form of a lock or an alarm.

Relation between Car Insurance and Anti-theft Device

In case of car theft, as per the policy terms and conditions, the car owner gets the amount up to the insured declared value. In case nothing happens, the policyholder does not get any coverage for theft.

Hence, it is in the interest of the insurer that the vehicle owner insures the car to protect it against theft. With the installation of an anti theft device, the car’s security is enhanced, thereby making it easy for the vehicle owner to track the car.

Insurance companies encourage vehicle owners to install anti theft devices in their vehicles and also offer discounts for the same. Indian insurance companies only offer discounts on installation of devices certified by Automotive Research Association of India (ARAI).

Benefits of Installing Anti-theft Device in Cars

1).  Prevents Theft: 

Anti theft devices help in prevention of theft by instantly notifying the vehicle owner about the attempt to steal the vehicle. The device also helps in stopping the theft as the car alarms the people near the car who can catch hold of the thieves.

2).  Discount on car insurance: 

You can earn a discount on comprehensive car policy by installing anti theft devices. The discount is offered both on renewal as well as new purchase. However, If you plan to install the device then it is important to inform the insurance company about the security measure via email or call.

3).  Swift Claims Settlement Process: 

If you have actively taken the measure to safeguard your car by installing the device, but if despite that the car is stolen then the insurance company will offer you a swift claims settlement process. It can give the insurance company a sense of assurance and that you did the best to prevent the theft.

4).  Avoid Inconvenience: 

In case of car theft, visiting the police station, filing an FIR claim, submitting documents to the insurance company for claim, etc. can be a daunting process which can be avoided by installing an anti theft device which quickly raises alarm in case of a theft attempt.

5).  Financial Safety:

When you raise a claim in case of theft then you will be eligible to receive value up to insured declared value.

Different Types of Anti-theft Devices for Cars

Given below are different types of anti theft devices that are approved by ARAI.

1).  GPS Tracking: 

This type of device works based on Global Positioning System offering a real time location of the vehicle when it is active

2).  Car Alarm: 

This is a sound based device which instantly alerts the people around the car, notifying them about the tampering or potential theft.

3).  Electronic Immobilizer: 

Few advanced car keys come with a technology that sends signals to the car to start its engine. The car does not start without the signals.

4).  Kill Switch: 

This device switches off the engine of the car until you own it again. To prevent thieves from accessing the switch, such devices are usually installed in a hidden location.

Anti-theft Device and its Impact on Car Insurance Premium

Overall, installation of an anti theft device in your car can help you avail discount of up to 2.5% on the payable premium. The discount may vary from insurer to insurer.

It is important to know that installation of anti theft devices is not mandatory in the car. While it can help you get a discount, it can also prevent your car from thieves.


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