Anti-Theft Device And Its Impact On Car Insurance Premiums

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Buying a car is a major investment for everyone. It is important to protect the vehicle from any type of security issues caused by thieves. The number of car thefts happening in the country is only increasing with every passing day. The best and most safe way to follow is the addition of anti-theft devices to the vehicles. It is advisable to check the safety features of a car before making a purchase.

How do anti-theft devices help?

While it is almost impossible to prevent the car being stolen, you can always make use of the many warning systems that are available to reduce the probability of a vehicle being stolen. This is the main purpose of an anti-theft device used in a vehicle.

Ensure that the anti-theft device you are planning to install in the vehicle have been approved by the Automobile Research Association of India (ARAI). Getting this anti-theft device will not just improve the security features of the vehicle but will also lower the amount of premium you will have to pay for your car insurance.

Many of the cars that are being sold currently come with in-built anti-theft devices. Do not worry if the car did not come equipped with an anti-theft device. You can always install any anti-theft device you wish at a later stage. The cost of the anti-theft device will depend on the technology being used in the device.

What are the benefits of having an anti-theft device?

Insurers generally offer a discount on the amount you have to pay as premium. Check with the insurer to see the extent of discount they provide for installing the anti-theft device. The discount provided is, however, not applicable on the total premium amount. This discount is applicable only on the own damage part of the premium. Discounts will not be offered on the premium paid to cover third-party damage. A discount of up to 2.5% will be provided on the own damage premium if you have the suitable safety features installed in your vehicle.

What if the car I buy is equipped with anti-theft devices?

Most of the cars that are being sold now come equipped with anti-theft devices. Many of the high-end vehicles come with an anti-theft system. Nowadays, even the budget models that are being sold by different manufacturers come equipped with at least a basic anti-theft device.

Insurers generally prefer to provide insurance to car owners who own vehicles that are equipped with safety features. This is because these anti-theft devices greatly reduce the chances of the vehicle being stolen. This will have an impact on the number of own-damage claims the insurer will have to settle.

Many of the older vehicle models will not have this feature. You can install this device separately to enhance the safety of the vehicle which in turn reduces the premium to be paid for the insurance policy. Make sure to check with the insurer if the device is approved by the ARAI before installing the device.

Many of the car manufacturers who are producing mid-range vehicles have now started to include anti-theft devices as part of the vehicle. It is expected that the rules might soon be changed making it compulsory to have anti-theft devices in cars. The move might be done to help both the insured and the insurer. These devices will reduce the amount to be paid as premium and will also bring down the number of claims made due to theft.

What are some of the popular anti-theft devices?

There are many safety devices available in the market ranging from ignition cut-off to satellite tracking system. You can choose the anti-theft device based on your requirements and the risks you wish to protect your vehicle from.

You should install better safety equipment in your vehicle if you are staying in an area that is prone to thefts. There are different types of safety devices available. Listed below are some of the popular anti-theft devices:

• Electronic Immobilisers

  Many of the cars that are being sold come with standard keys that make use of electronic immobilisers. The microchips present in the keys will send the required signals to the fuel pump system and the ignition. The ignition will function only if the correct signals are received.

• Mechanical Immobilisers

  This is the most common and least expensive safety device that is available in the market. It is recommended that you make use of these mechanical immbolisers in combination with the other anti-theft devices that are available. The different type of mechanical immobilisers that are available include hood lock, steering wheel lock, tire lock, crook locks, gearshift lock and many more.

• Vehicle Alarm

  This is also a common safety feature that is available in most of the cars that are launched by car manufacturers. In case the vehicle is being tampered with, the car will sound an alarm to notify the tampering to the car owner. This will alert everyone who is in the nearby vicinity of the vehicle.

• Satellite Vehicle Tracking Systems

  This system will provide the owner of the vehicle with the real time location of the vehicle by making use of Global Positioning System (GPS). Vehicle Tracking Systems are generally very effective and can manage to recover the vehicle within an hour from the time the vehicle was stolen.

You can choose any one of these safety features based on your requirement. The cost of these anti-theft devices will depend on the amount of technology that is being used in these devices. Try to choose a technology enabled system as this will be the most effective to detect any tampering with your vehicle.