All About Anti-Theft Device and Its Impact on Car Insurance

*Please note that the quotes shown will be from

The number of car thefts in the country has been on a steady rise. Take for instance, the capital of India, Delhi. The city has recorded a 38% increase in motor vehicle thefts. Simply put, every day, 84 vehicles are stolen in the city. Consequently, protecting your vehicle from being stolen becomes all the more important.

One of the safest ways to do this is to install an anti-theft device approved by ARAI (Automobile Research Association of India) . The installation of an anti-theft device not only enhances the security of your vehicle, it also lowers your insurance premium. Let’s go in details to understand how anti-theft device impacts your car insurance.

Insurance companies consider those car owners responsible who have anti-theft device installed in their vehicles. It is believed that the number of stolen cars is bound to drop due to the installation of this device and it is in favor of car insurers as there are fewer cases of claim. Hence, insurers encourage car owners to install anti-theft devices in their vehicle by offering lucrative discounts on insurance premiums.

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 below table).

*The above calculation is done for Maruti Swift Dzire Vxi, 2015 Registered, Petrol Variant and North Delhi Registration.

Nowadays, many cars come fitted with anti-theft devices. Most luxury car manufacturers such as Toyota, Ford Motors and Mahindra have an inbuilt anti-theft system in their high-end models. Even mid-segment players such as Maruti Suzuki have introduced anti-theft devices in many car models. Insurers want to make anti-theft devices mandatory in two-wheelers and commercial vehicles also as it would help reduce the cost of honoring insurance claims.

Numerous car security options are available in the market, such as mechanical device and ignition cut off device, intelligent computerized anti-theft, satellite tracking system and engine control module. 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 from the Automobile Research Association of India (ARAI). Some of the approved anti-theft brands by ARAI in India are AutoCop, Minda, Nippon and Xenos.

You should install a good anti-theft device in your car if the area you stay or drive-in is unsafe and theft-prone. These safety devices come in different variants. Before picking one for yourself, consider which features are useful for you:-

Read Also-: 2 Scenarios When Not To Claim Car Insurance

If you install the safety device after you have bought the policy, the insurer will calculate the discount on a pro-rata basis for the remaining policy tenure as per tariff provision.

The cost of anti-theft devices depends on how technology-enabled they are. A basic alarm device will cost you between Rs 3,000 and Rs 4,000, whereas, for a GPS or Intelligent Computerized Anti-Theft (ICAT) system, you will have to spend between Rs 6000 and Rs 17,000.  

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