WHAT IS ANTI THEFT DEVICE AND ITS IMPACT ON CAR INSURANCE PREMIUM

When you spend so much money on the car, it becomes crucial to protect it from thieves and burglaries. Numerous car thefts happen every day and it becomes essential to secure your vehicle with the help of technology. One of the best and safest ways to ensure the safety of your vehicle is to install an anti-theft device.

What is an Anti-theft device?

An anti-theft device is a type of gadget that uses automatic or manual techniques to help you keep your car secure from theft. It can use various technologies to achieve the desired purpose. Different anti-theft devices are available in the market, from locks to alarms and more. These devices limit the possibility of your car getting stolen by enhancing the security system of the vehicle.

Most car manufacturers today furnish new cars with a host of safety devices. However, you can always choose to be more careful and raise the level of security by opting for additional safety devices for your car. It is important to notify your car insurance company about the installation of these devices so that they can make necessary changes in your policy coverage and amount of premium.

What are the types of Anti-Theft Devices in India?

Check out the various types of anti-theft devices popular in India approved by the Automotive Research Association of India (ARAI).

• Car Alarm:

Car alarms are sound-based anti-theft devices (ATD). If anyone attempts to tamper with the car by any means, the system will alert people nearby the car by sounding an alarm. Alarm based anti-theft devices are usually easily affordable.

• GPS Tracking:

Global Positioning System (GPS) device works on the technology that tells you the real-time location of the vehicle when the system is active. Along with the utility to navigate it can also come in handy to track the stolen vehicle.

• Mechanical Immobilisers:

Mechanical immobilisers are a type of mechanical device that stops the car from moving. Tyre Lock, Gear Lock and Steering Lock are some of the notable examples of mechanical immobilisers.

• Kill Switch:

Kills switch is a type of ATD that contains a switch you can install in any hidden location in the car, when you turn on the switch, it switches off a part of the car's engine, making the car immobile till the switch is on.

What is the impact of anti-theft devices on the car insurance premium?

Car insurance is a contract between the insurance company and the policyholder, where the insurer promises to cover the vehicle of the policyholder financially as per the policy terms of the policy, from any damage caused due to an accident, theft, fire, natural and man-made disasters. The amount of car insurance premium you have to pay changes significantly after installing an anti-theft device.

The insurer does not have to pay any compensation when no claims are raised by the policyholder in a policy year. Hence, it is in the interest of the insurance company to make sure the car of the policyholder is equipped with an anti-theft device, as it ensures the safety of the vehicle, which is just as significant for the insurer as it is for the car owner/policyholder. Therefore, insurers encourage car owners to invest in anti-theft devices and install them in their vehicles. In order to urge car owners to install anti-theft devices in their cars, insurance companies offer discounts on the amount of car insurance premiums.

If you install an ARAI-certified ATD in your car, you can get a discount of upto 2.5% on the payable premium from your motor insurance company, while buying/renewing car insurance online/offline.

Thus, anti-theft devices offer a dual advantage. Along with preventing car theft they also help to reduce your car insurance premium. You can install any safety feature on your vehicle based on your requirement. It is advisable to get a technology-enabled system to effectively detect any tampering with your vehicle.

Kotak General Insurance offers you various car insurance products and services to protect yourself and your car from the burden of financial loss and damages and fulfil all your car insurance needs.

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