Effect of Anti-Theft Devices and Their Impact on Car Insurance

As the name suggests, car anti-theft devices add a protective layer to your car to keep it from getting stolen. However, while this benefits the vehicle owner, many wonder why insurance providers include an anti-theft device in car insurance.

This is because, in essence, the purpose of four-wheeler insurance is to safeguard the insured asset – which in this case is the car – against any unfortunate eventuality, such as accidental damage or theft. However, if the vehicle is not subjected to any of the unpleasant situations mentioned in the car insurance coverage, the insurance company can protect itself from paying for the damages.

If the insured vehicle is stolen, ARAI-approved anti-theft devices can track the vehicle, which deters thieves. Therefore, an anti-theft discount on car insurance is a way to encourage car owners by passing on the part of the benefit. However, one can only avail of the anti-theft discount on car insurance if the device is certified by ARAI.

Vehicle owners install an anti-theft device for the same reason they invest in a car insurance policy: to protect their vehicle. However, there are several benefits of ARAI-approved anti-theft devices:

• Theft Prevention

Car anti-theft devices are the determining line between whether or not your car is an easy target for thieves. Naturally, if a vehicle is going to be locked and tracked when stolen, it will deter thieves from messing around with your vehicle.

• Discouraging Theft

ADTs are the perfect solution to keep car thieves away and may even assist in catching the perpetrator red-handed in the act. To
illustrate with an example, imagine someone approaches your car with the intention to steal it without being aware that it is protected by an ATD. If they try and break into your ATD-protected car, the alarm system will go off, which will not only panic the thieves but also intimate the security guards who can catch the perpetrators.

• Anti-Theft Device Discount in Car Insurance

Car insurance is your best friend in any unpleasant scenario you may encounter on the road. To encourage the purchase of four-wheeler insurance, insurance companies offer several discounts. The anti-theft device in car insurance is another way to reduce the premium payable on your car insurance policy. After the installation of ATDs, car thefts are bound to reduce, and so insurance companies offer lucrative discounts to insurance seekers.

• Hassle-Free Claim Settlement

When you install an ATD, it displays a sense of responsibility on the part of the vehicle owner. Moreover, if you raise a car insurance claim for theft of an ATD-protected vehicle, the insurance company will be able to clear your claim sooner.

• Affords Peace

There is no doubt that when your vehicle is stolen, you will be greatly distressed. To add to the trauma, you will have to take care of some legal responsibilities, such as filing an FIR with the police and informing your insurance provider. By simply installing an ATD, you can avoid all these inconveniences and sleep peacefully, knowing that your car is protected.

• Financial Protection

If your car is stolen and you raise a claim against your car insurance, you will only be compensated with the Insured Declared Value (IDV) and not the purchase price. This means that you will have to incur the losses over and above unless you have added an invoice-protection cover to your four-wheeler insurance.

Now that we have established the importance of an ATD, let’s explore the different kinds that you can get installed in your car to protect it from being stolen:

• GPS Tracking: If you have installed an anti-theft device that uses GPS, then you can track your stolen vehicle. The GPS-enabled system offers real-time updates of the location of the vehicle.

• Alarm: This sound-based system alerts when your vehicle is tampered with. This keeps the perpetrator from continuing and also alerts those who are near your vehicle. This is one of the more reasonably priced ATDs available today.

• Electronic Immobiliser: These are built-in transponders fitted in the car keys that signal the ignition and the fuel pump system to start the engine. The car does not start unless the keys are in close proximity.

• Mechanical Immobilisers: Mechanical immobilisers come in several options, and because they are not very technology-centric, they are also relatively cheaper. They incorporate mechanical devices to freeze the car by employing techniques such as tyre locks, steering locks, and gear locks.

• Kill Switch: The kill switch renders a part of the engine immobile until it has been turned on. This has to be installed in a place where it will not be very easy for the thieves to locate.

Both an anti-theft device and four-wheeler insurance are a way of protecting your vehicle against unpleasant scenarios. With both these purchases, it is important to look for a reliable provider. The four-wheeler insurance by Tata AIG provides wholesome protection to your car right from unpleasant scenarios such as theft and accidental damages to natural calamities.

Here are some common questions that individuals may have before purchasing an anti-theft device:

Do new cars have in-built ATDs?

Understanding the importance of car protection, several car manufacturers in India are making cars with one or a combination of pre-installed ATDs. Buyers can get detailed information about ATDs from car dealers. However, if your model does not come equipped with an ATD, you can always have one installed yourself.

How much do ATDs cost?

This largely depends on the kind of ATD you purchase. Technology-enabled devices cost higher than the non-technology variants. Some simple mechanical immobilisers, such as the tyre lock, can cost as little as ₹1000.

Can you avail of the anti-theft discount on car insurance in the middle of the policy term?

If you install an ATD in your car after the purchase of car insurance, your insurance provider will typically calculate the discount on a pro-rata basis for the duration of the policy term.