Some insurance companies are raising rates if your car is at higher risk of being stolen
The insurance coverage business misplaced one billion {dollars} to auto theft final 12 months, with $700 million in losses in Ontario alone.
With no indicators of theft slowing down, some insurance coverage firms are including surcharges should you drive a automobile prone to being stolen.
According to RatesDotca, some insurance coverage firms are elevating premiums in case your automobile is taken into account the next threat of being taken by thieves, partly attributable to masking huge insurance coverage losses.
“In some cases, we are seeing as much as $500 if your vehicle is on their list of being most stolen,” stated Daniel Ivans, an insurance coverage professional with RatesDotca.
“I’m angry, I’m frustrated, and these car thieves seem fearless when they are taking your vehicle,” stated Sunil Patel of Scarborough, who had his Lexus SUV stolen from his driveway earlier this month.
Patel had a video safety system with an audio characteristic that alerted the thieves they have been being recorded and to depart his residence. Still, it did not appear to part them as they stole his automotive, despite the fact that Patel stated they needed to minimize by means of his steering wheel to take away a steering wheel lock.
Patel stated his stolen automobile has nonetheless not been changed, and he has been instructed his insurance coverage premiums will probably be going up $2,300 a 12 months when he will get a brand new automotive.
“We have a family, and we need a car. There is a vehicle shortage, prices are high, and interest rates are high, so everything right now is a mess,” stated Patel.
According to RatesDotca, in some circumstances, a 35-year-old male driver in Toronto with no prior convictions driving a Honda CR-V 2020 has seen a 26 per cent improve of their complete insurance coverage over final 12 months.
CTV News Toronto interviewed Arwinder Kalsi of Mississauga final month when he obtained a letter saying he should have a monitoring gadget put in or his premiums would improve.
“It’s like if you don’t do this, we will increase your premium,” stated Kalsi.
Now greater than ever, when shopping for a automobile, you must examine how a lot your insurance coverage will probably be beforehand and contemplate automobiles which may be cheaper to insure.
“Speak to an insurance broker or agent before you sign those papers because you have to factor in the cost of insurance into the whole cost of vehicle ownership,” stated Anne Marie Thomas with the Insurance Bureau of Canada.
It could also be a great time to buy round should you get hit with a surcharge in your premiums.
“As a consumer, if you get a renewal in the mail and you get a $500 surcharge or any type of surcharge because you have a high-risk vehicle, it’s definitely a good time to check your options. Because there will be other options out there for you with other companies not surcharging as heavily,” Ivans stated.
