All About Anti-Theft Device And Its Impact On Car Insurance
Car theft is a major concern for vehicle owners in India. For this reason, installing anRead more
What is an Anti-Theft Device in Car Insurance?
In terms of car insurance, an anti-theft device is a security system designed to prevent unauthorised access, movement, or theft of your car. Having an anti-theft device approved by ARAI (Automotive Research Association of India) in your vehicle indicates to insurance companies that you have taken proactive measures to minimise the risk of theft. As a result, insurers consider your car a lower risk to insure and thus offer you discounted premium rates.
How Does an Anti-Theft Device Work in a Car?
An anti-theft device in a car utilises various technologies to prevent vehicle theft. It may include an engine immobiliser, a car alarm, and a GPS tracking system. While car alarms alert the vehicle owner or trigger an alarm in the event of unauthorised access, engine immobilisers prevent the vehicle from starting without the correct key. GPS tracking systems allow real-time monitoring of the vehicle's location.
While most car makers furnish new cars with several safety devices, you can always be more careful and increase the security of your car by opting for additional safety devices. However, you should inform your insurer when installing these devices so they can adjust your policy coverage and the car insurance premium.
Benefits of Installing Anti-Theft Devices
Anti-theft devices for cars come with a range of benefits that include:
- Enhanced Vehicle Security: Anti-theft devices act as powerful deterrents to potential thieves. Steering wheel locks, car alarms, and immobilisers make it challenging for thieves to gain access to the vehicle or drive it away unnoticed.
- Reduced Risk of Car Theft: The presence of an anti-theft device in your car significantly decreases the likelihood of theft. Thieves are more likely to avoid vehicles with visible security features and prefer easier targets instead.
- Lower Insurance Premium: Insurance companies recognise the significance of anti-theft devices in reducing the risk of car theft. As a result, policyholders who install these devices are eligible for rebates on their car insurance premium.
Types of ARAI-Approved Anti-Theft Devices for Cars
A wide range of anti-theft devices are available to suit different vehicle types and budgets. You can choose a device depending on your requirements and the risks you are exposed to. Note that irrespective of the anti-theft device you choose, it must be approved by ARAI.
Some of the ARAI-approved anti-theft devices in India include AutoCop, Nippon, Reliance, Pricol, and Unidad Techno, among others. Here are the popular types:
- Car Alarms: Car alarms produce loud, attention-grabbing sounds when triggered by a break-in attempt. They alert nearby individuals and may scare off potential thieves.
- Immobilisers: Immobilisers are electronic security systems that require the correct key or code to start the vehicle. Without the proper authentication, the engine remains immobilised.
- GPS Tracking Devices: GPS tracking devices use satellite technology to monitor a vehicle's location. In the event of theft, owners and law enforcement can track the stolen vehicle's movements.
- Kill Switches: Kill switches are either manual or electronic switches that disrupt the flow of electricity to the engine. This prevents the car from starting, even if the thief has access to the keys.
Impact of Anti-Theft Devices on Car Insurance Premiums
The installation of anti-theft devices has a significant impact on car insurance premiums. Insurance providers view these devices as valuable risk-reducing tools, which can lead to the following effects:
- Lower Premium Rates: Car insurance companies offer a lower premium price for vehicles equipped with an anti-theft device in car insurance to encourage vehicle owners to take proactive measures against theft. By installing an ARAI-approved anti-theft device in your car, you become eligible for a reduced car insurance premium.
- Peace of Mind: In addition to potential cost savings, anti-theft devices provide car owners with peace of mind. Knowing that your vehicle is better protected can alleviate worries about theft or unauthorised access.
- Hassle-Free Claim Settlement: Fitting an anti-theft device in your car assures insurers that you have taken active measures to protect your vehicle. In the event of a vehicle theft claim, it will help insurers understand that you did what you could to safeguard your car, facilitating a smooth claim settlement.
You May Also Read: How To Reduce Car Insurance Premium
How Much is the Anti-Theft Discount on Car Insurance?
Usually, car insurers give a 2.5% discount on the premium to a maximum of Rs. 500 if the vehicle is fitted with an anti-theft device.
However, the discount is available only for the damage caused to your vehicle during an accident and does not include the premium of the third-party cover. (Refer to the example below).
| Condition |
Premium Price |
| Own-Damage Premium |
Rs. 12, 000 |
| Anti-theft device discount (2.5% or Rs. 500, whichever is less) |
Rs. 300 |
| Final Car Insurance Premium |
Rs. 11, 700 |
What is the Cost of Anti-Theft Devices?
The cost of anti-theft devices differs as per the features and technology enabled in the device. For instance, a basic alarm device will cost you between Rs 3,000 and Rs 4,000, whereas for a GPS or Intelligent Computerised Anti-Theft (ICAT) system, you will have to spend between Rs 6000 and Rs 17,000.
Things to Consider While Choosing Anti-Theft Devices
Selecting a suitable anti-theft device for your vehicle is crucial to ensure adequate security. Here are some important tips you should consider when choosing an anti-theft device for your car:
- Research and Compare: Conduct thorough research on the various types of anti-theft devices available. Compare their features, pros, and cons to find the one that best suits your needs.
- Check Insurance Requirements: If you're installing an anti-theft device to reduce insurance premiums, ensure it is approved by the Automobile Research Association of India.
- Combine Multiple Devices: For added security, consider using a combination of anti-theft devices. Layering security measures will make it difficult for potential thieves to unlock your vehicle.
Wrapping Up!
Ananti-theft device for cars offers multiple benefits to vehicle owners. These devices not only enhance vehicle security and reduce the risk of car theft but can also lead to potential discounts on your car insurance. By taking steps to protect your vehicle, you not only save on vehicle insurance costs but also gain invaluable peace of mind.
