Waterloo man issued anti-theft surcharge for Jeep Gladiator

A Waterloo, Ont. man is facing a $500 surcharge if he doesn’t put a tracker in his Jeep. CTV’s Colton Wiens explains why.

A Waterloo man is upset about having to pay to install a tracker in his jeep, as his insurance company is concerned about its chance of being stolen.

Aaron Leamon owns a 2020 Jeep Gladiator. He received a letter from his insurer this month informing him that his vehicle is at high-risk of theft and is now subject to an annual $500 surcharge. However, he can avoid the surcharge by installing a tracking system. Leamon said it’s $400 for the device, his insurance will cover $100 of it, but he’s not sure of installation costs and expects to pay $500 either way.

“Very disappointing. Knowing that I am a target. And I feel for all the other people that are targets of this as well. But the auto industry, the auto makers should actually already know all this information, and they should be making it better for the consumer not to have to spend out of pocket after you buy the vehicle,” Leamon said.

According to the Insurance Bureau of Canada, rates of auto theft claims in Canada were 538 percent higher last year compared to 2017. As well, insurers are still paying a lot out in claims as people continue to be victimized.

“With all of that we are working with government, we are working with law enforcement, we are trying to find solutions. But in the meantime, the claims need to be paid, and the money needs to come from somewhere,” said Amanda Dean, vice-president of Ontario and Atlantic, Insurance Bureau of Canada.

Dean said people with vehicles at a high risk of being stolen, or that live in a high risk area, will start to see insurers starting to implement some things.

“The levers that they can pull in order to be able to pay claims but also to incentivize folks to install tracking devices, install anti-theft devices,” Dean said.

Leamon said he understands the insurers need make money, but he feels the manufacturer should be doing more to help.

“I understand where they’re coming from because it is a target. So they’re going to end up having to pay more money over time. So that’s the insurance paying out money where the automaker can stop this and probably be better for the consumers all the way around,” Leamon said.

According to Dean, a lot of work has been done to combat auto theft, with new resources from governments for prosecution and for police, insurance companies are making these surcharges, and clients are installing anti-theft tools.

“If there’s something they can do to help prevent this as well, it really sends a strong message. But of course, as you mentioned, manufacturers have a role to play in combatting auto theft as well,” Dean said.

“Everyone who has a problem, contact your dealership and send them a message and say, why? ask why this is not being done to all cars?” Leamon said.

Stellantis said it’s Jeep Connect service includes both vehicle theft alert and stolen vehicle assistance.

“Stellantis vehicles meet or exceed all applicable federal standards for safety and security. While such events are rare, they are not exclusive to any make or model of vehicle. Stellantis uses industry-standard vehicle-security technology. And as with other vehicle features, we are engaged in continuous product improvement. Notwithstanding, we urge all motorists to take due care in securing their vehicles. The security and protection of our customers are unsurpassed priorities at Stellantis.” Stellantis said, in an email to CTV News.