Drivers face $1,500 insurer surcharge if they don’t take three actions now – see if you have one of the affected models

DRIVERS are forced to pay more for insurance depending on the model they drive, and a decrease in theft is unlikely to lower rates.

However, there are things you can do to increase your chances of getting a lower rate if you drive one of the more popular models.

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Canadian drivers have been seeking more insurance per month, with Quebec’s rate rising the most after theft rates soared in 2023.

Insurance companies have collectively paid out $1.5 billion in auto theft claims, representing a quarter of all claims made in the country.

In Ontario, thefts between 2018 and 2023 increased 561 per cent, with payouts totaling policyholders more than $371 million, up from $56 million.

Eight months into 2024, police departments in those provinces have reported a decline of about 17 percent, and Quebec’s rates of 36 percent, making them “cautiously optimistic,” according to the Driving.

The outlet claims this means major advances are being made in vehicle security and anti-theft measures, but it doesn’t mean insurers are ready to loosen their grip.

Debbie Arnold, a broker with Sound Insurance, said a long process is needed first.

“Fees must be placed before FSRA [Financial Services Regulatory Authority of Ontario] board is approved,” she told the outlet.

“It takes time to collect statistics and time for this approval process. We are currently just starting to pay for the 2022-2023 period as it relates to theft.”

Drivers of certain makes and models of vehicles were more likely to make theft claims than others.

Therefore, drivers with these models were charged a $1,500 surcharge that other drivers did not have to pay.

Affected models from 2020 or newer were:

• Chevrolet Tahoe
• Suburban Chevrolet
• GMC Yukon
• Land Rover Defender
• Land Rover Range Rover (Sport, Evoque, Velar)
• Lexus GX 460
• Lexus RX 350
• Toyota 4Runner
• Toyota Highlander
• Toyota Grand Highlander
• Acura MDX
• Ram 1500 pickup
• Jeep Wrangler
• Vehicles with MSRP greater than $125,000, excluding EVs

To avoid paying the surcharge, Canadian companies want drivers to take steps to prevent theft in three steps.

The three steps are:

1. Have a professional install a replacement immobilizer and provide proof of payment. Someone could install it themselves, although that would only remove half the surcharge.
2. Other systems can replace an immobilizer, such as a battery kill switch, fuel cutoff, or a pin-to-start system. If a homeowner installs one of these systems, half of the surcharge will be removed.
3. A steering wheel lock, brake pedal lock, wheel and tire lock, key fob signal blocker, or retractable bollard can reduce the surcharge to $500.

The outlet continues to state that GPS devices in cars will not reduce the surcharge, as insurers prefer the vehicle not to be stolen.

Not all insurers charge such a high surcharge, although many charge drivers more if they choose not to use anti-theft devices and systems.

Tailor-made insurance for high-end cars will give drivers a free TAG system, a GPS tracking device, if they insure an affected model.

However, if they choose not to have the device installed, they will implement a $500 charge.

Because different insurance companies charge more for different models, it’s important to contact your broker about the model you drive and ask what steps can be taken to lower your rate.