An increasing number of Ontario drivers are being urged by their auto insurance companies to install anti-theft tracking devices, but the burden of the cost varies among insurers.
Elaine Goldsmith from Newmarket, Ont., expressed frustration with the preferred system, Tag, used by most insurers, stating that she believes the cost should be covered by her insurer, Belairdirect. She recently received a letter notifying her of a $500 high theft risk premium for her 2021 Honda Accord, with the option to avoid the increase by paying $249.95 plus tax for the Tag system installation.
However, Goldsmith, who leases her car, is concerned about additional expenses upon returning the vehicle to the dealership, potentially costing her an extra $600 overall.
On the contrary, Arwinder Kalsi had the Tag anti-theft system installed on his truck last year, with his insurance company covering the cost.
Belairdirect defended their approach, stating that they recommend targeted installation for vehicles at risk of theft rather than distributing the costs among all customers.
According to the Insurance Bureau of Canada (IBC), auto theft has surged by over 329% in the past five years, resulting in $1 billion in losses in 2022 alone. Insurance companies aim to reduce theft through tracking devices, leading to increased vehicle recovery rates.
Amanda Dean, Vice-President of Ontario and Atlantic Canada at IBC, emphasized the importance of checking leasing contracts before installing tracking devices, as policies vary among leasing companies.
Despite having a clean driving record, Goldsmith feels unfairly penalized due to her vehicle being considered high risk, highlighting the need for consumers to research insurance premiums and potential additional expenses before purchasing a vehicle.
