How Do Anti-Theft Devices Work and How Does It Impact Car Insurance Premium

If you own a car, chances are, you have spent months planning the purchase and spent a fortune to buy it. Unfortunately, car thieves are not considerate while crashing into your vehicle and speeding off with it. The consistent rise in car theft in the country has posed a huge risk to your vehicle’s security. Resultantly, it is now a priority to safeguard your car from being stolen.

One of the best methods to ensure your car’s safety is installing an anti-theft device approved by India’s Automobile Research Association (ARAI). This device not only increases security but provides additional benefits in monetary terms as well. Indian car insurance companies provide a discount on the premium of cars that have an anti-theft device installed. This means you spend less money to get the same benefits that others do at a higher price. Talk about money well spent!

Let’s delve into the details of the anti-theft device and its relation with car insurance!

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Why are Discounts Offered for Anti-Theft Devices?

Anti-theft devices, as the name clearly suggests, prevent your car from getting stolen. For insurers, this factor leads to lesser total loss claims. This device is a win-win for both the car owner and the insurance company. Resultantly, insurance companies offer a discount on installing this device to encourage car owners to get one.

How Much Will You Save?

When the car is fitted with an anti-theft device, insurance companies usually provide a 2.5% discount on the premium to a maximum amount of Rs. 500. This discount can only be availed on the premium for self or self-property damage, not on the third-party cover.

If you get this device in the middle of the policy, you can avail of the discount on a pro-rata basis for the remaining policy tenure.

Pre-Installed Devices

With the steep rise in car-theft cases, automobile companies have made the commendable move of supplying cars with pre-installed anti-theft devices. Luxury, as well as economy segment manufacturers, have this device installed, helping people to keep their cars safe. Of course, these pre-installed devices also pass for availing discounts when you renew comprehensive car insurance premiums.

Choosing the Right Device

Several companies in India manufacture a high-quality anti-theft device with various features. Regardless of which company or feature you choose, it is mandatory to get approved by ARAI. Some popular ARAI-approved brands are AutoCop, Minda, Nippon, and Xenos.

Most companies provide features like alarm, keyless lock devices, electronic immobilizers, steering wheel locks, vehicle tracking, etc. Depending on the features, the installation can cost between Rs.3000 to Rs.17,000. The device you choose should fit your requirements along with the risk factor. If you live in an area that can potentially pose theft risks, get a comprehensive device that provides multiple features, while in less theft-prone areas, you might settle for a lesser number of features.

Anti-theft devices are vital for the safety of your car. Avail of the benefits provided by motor insurance companies while also protecting your car from potential risk. Get this device installed at the earliest, and have a safe drive wherever you go!