Auto insurers telling drivers to install anti-theft measures or pay higher premium

Auto insurance rates rising amid thefts Owners of some cars are being told to install anti-theft protections or face steep insurance rate hikes. CTV's Dylan Dyson reports.

As automotive thefts continue to run rampant across Canada, auto insurers are forcing drivers to choose between installing costly anti-theft measures or paying higher premiums.

It's the exact scenario North Algona Wilberforce resident Kimberley Ashick was faced with after purchasing a new 2022 Dodge Ram 1500.

"I got a letter about putting an immobilizer in it, and if I didn't, my insurance was going up another $1,500 on top of what I'm paying," she told CTV News.

"And I went, oh my God, are you kidding me?"

On her previous vehicle, a 2015 Toyota RAV-4, Ashick says her yearly insurance premium with CAA Insurance was about $540.

After installing the immobilizer in her new RAM pickup truck, her insurance is now over $1,100 yearly. She says the anti-theft device cost her nearly $700 itself.

In a statement to CTV News, CAA Insurance said, "Everyone has a role in combatting auto theft, including policyholders who have vehicles highly sought out by thieves. […] policyholders with vehicles identified as having a high theft risk are now subject to a High Theft Risk Premium Surcharge."

Ashick said living in rural eastern Ontario didn't appear to make a difference.

"I live in rural Renfrew County. I don't think the thefts are really happening around here. It's the bigger cities like Ottawa, Toronto," Ashick said. "I tried to explain to them, that we're out so far I don't think it's happening in this area. And I was between a rock and a hard place. They gave pretty much gave me no choice."

In 2023, the Insurance Bureau of Canada said insurers paid out more than $1.5-billion in claims to replace stolen vehicles, a record high.

It's a reality that has Ashick now worried to take her new vehicle into larger cities.

"Even going to a concert in Ottawa, I was really nervous to leave my vehicle there. I know people's Dodges have got stolen from there while they're in the concert. I'm very nervous to take it to the city," she said.

"Had I known beforehand, I probably wouldn't have bought the Dodge."