Auto insurance

Can vehicle theft affect your car insurance premium?

In order for your insurance company to cover the cost of replacing your vehicle after a theft or attempted theft, you need comprehensive coverage.

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Each year, the Insurance Bureau of Canada (IBC) provides data to the Equity Association, which publishes the List of the 10 most stolen vehicles in Canada.

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This is not a list you really want your vehicle on. Fortunately, there is auto insurance coverage to protect against vehicle theft or attempted theft.

If your vehicle is at a higher risk of being stolen, there are some things you need to know about what coverage you need and how your auto insurance rate may be affected.

Basic car insurance coverage is not enough to protect against theft

The mandatory minimum insurance cover (liability cover) that drivers must carry will unfortunately not cover replacement costs if your vehicle has been stolen.

In order to your insurance company to cover the cost of replacing your vehicle after a theft or attempted theft, you will need to add an option comprehensive car insuranceall perils or perils specified in your policy. These blankets will pay for specific losses beyond those covered by collision coverage. Keep in mind that a deductible may apply to these coverages when making a claim.

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How does auto theft affect my auto insurance premium?

Your vehicle model is assessed annually according to its risk of theft and damage by the Canadian claims assessment (WIPE OFF). A high-risk model of theft may play a role in a higher premium. You may also face a higher rate if the area you live in has a lot of vehicle theft claims.

If you choose to add comprehensive coverage to your policy, or face a rate increase after purchasing a high-theft-risk vehicle, comparing car insurance rates and coverage options is the best way to find an affordable premium.

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If your vehicle is stolen, your insurance premium should not increase dramatically just because you made a claim. However, do repeated complaints in a short period of time can result in a rate increase or, worse, the removal of theft coverage from your policy.

How to Report a Stolen Vehicle and File an Insurance Claim

If your vehicle has been stolen, you will need to report it immediately to the police. When filing a claim, provide tThe police report number to your insurance provider along with your policy number.

Your insurer will also want to know where the vehicle was stolen. From there, your claims advisor will determine if you have the right coverage and guide you through the claims process.

If your vehicle is stolen and you have filed a report and a claim, it may take a few days for the process to begin. Time is allocated to determine if the vehicle can be found first. Thus, insurance payments may take time to complete after the claim begins. During this process, you will probably also have to pay your deductible. However, the amount of the deductible will vary with each individual policy.

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Prevent car theft

If you are driving a vehicle at high risk of theft, there are steps you can take to prevent it from being stolen.

Use anti-theft devices, park your vehicle in well-lit places, install an ignition interlock to preventing hot-wiring and installing a location tracker are all very effective precautions you can take.

And of course, locking your windows and doors every time you get out of your vehicle is always a great first defense against theft.

LowestRates.ca is a free, independent rate comparison website that allows Canadians to compare rates for various financial products, such as home and auto insurance, mortgages and credit cards.

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