What to know about insurance before buying a high-theft vehicle

Detailed summary

Auto theft rates might be on the decline in Canada, but high claims costs and the tariff dispute mean insurance rates have yet to drop.

TORONTO — Auto theft rates might be on the decline in Canada, but high claims costs and the tariff dispute mean insurance rates have yet to drop.

While drivers of some of the most stolen cars often face the heftiest insurance bills, experts say there are a few things they can do to tamp down on their premiums.

Debbie Arnold, a business development manager of personal lines at Sound Insurance Services Inc., urges drivers to call their insurance company or broker for a quote before buying any vehicle.

Because every insurer relies on a different pool of data from their customer base, Arnold said a car that is considered a high-theft vehicle at one company may not have that classification at another.

A call to an insurer can identify where your vehicle falls on its spectrum and give you a hint of what you may pay, if you purchase that car.

Generally, hybrid and electric vehicles aren’t considered high theft because they create more grunt work for thieves and aren’t as coveted on criminal markets, Arnold said.

By comparison, she has found SUVs and pickup trucks tend to be on most stolen lists and thus, they often generate higher insurance fees.

Morgan Roberts, vice-president of Ratehub.ca’s in-house property and casualty brokerage RH Insurance, said many drivers of high-theft vehicles are typically presented with an ultimatum as soon as they insure their car.

The drivers either have to install specific anti-theft devices or pay surcharges, which she said can total up to $1,500 annually in some cases.

Opening of the article, excerpted from BNN Bloomberg. To read the rest, open the article on the publisher's site.