How Does Installing Anti-Theft Device Impact Your Car Insurance Premium

A car is like a companion, and purchasing one brings certain responsibilities with itself. The sharp increase in the number of car theft and carjacking incidents across the country has prompted owners to resort to anti-theft devices. In addition to acting as a warning system, these devices help you save an amount on your car insurance premium.

While a car insurance policy shields you against unforeseen circumstances, the insurance providers also appreciate your responsible actions towards your vehicle. The installation of anti-theft device is one such activity which lets the insurer presume that the probability of the vehicle being stolen reduces after such devices are put in place. This reduction, in turn, lowers the chances of claims and the lower the claims, the more it is beneficial for the insurance providers.Therefore, to persuade more people to secure their car with Anti-theft devices, insurance companies provide a certain benefit of a discount on insurance premiums.

A comprehensive car Insurance premium includes a premium for the following components;

1. Third-Party Cover
2. Own Damage Cover
3. Personal Accident Cover

Covers against theft, road accidents, natural calamities etc. fall under Own damage. Therefore, the discount offered on account of the installation of anti-theft devices is given on the "Own Damage" component of the premium and not on the entire amount of premium.The value of the discount is up to 2.5% on the own-damage premium or Rs 500, whichever is lower.

There are many types of anti-theft devices that you can install in your car;

• Car Alarms: These raise a loud alarm if it senses forceful entry into the car
• Steering Lock: It locks the steering wheel of the car, which makes it impossible to manoeuvre without removing the lock.
• Gear Lock: It locks the gear of the car in one position (usually reverse).
• Electronic Lock: This lock doesn’t let you switch on the car unless turned on.
• GPS tracker: This lets you or the authorities know the real-time location of the car, in case it is stolen.

While some of these devices come fitted from the showroom, you can get others fitted from an authorised garage.

Anti-theft devices for cars are important in today's scenario. They not only deter criminals from stealing your vehicle but also give you a sense of security coupled with monetary benefits. However, do note that to be eligible to claim the discount, the anti-theft device(s) installed should be approved by ARAI.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.