Revealed – insurers adding auto insurance surcharges

Canadian insurers are adding surcharges to auto insurance policies amid the country’s vehicle theft crisis.

In her Driving.ca column, Lorraine Sommerfeld listed CAA, Aviva, Pafco, Economical/Definity, and Chubb as carriers that have passed on the costs of auto theft to consumers.

Here’s how much insurers are adding to auto insurance policies on certain vehicles:

• CAA – a surcharge of $1,500 unless car owners take recommended actions
• Aviva – a $500 surcharge on high-target cars if a TAG or KYCS system (not subsidized) is not installed
• Pafco – a $1,500 surcharge that can be removed by having a TAG system (subsidized)
• Economical/Definity – a $500 surcharge if policyholders opt out; TAG system free or subsidized
• Chubb – a $500 surcharge, with TAG systems either free or subsidized depending on the vehicle

Sommerfeld also noted that Intact has taken action beyond the common surcharge.

“They go one step past the $500 surcharge,” she wrote. “If you don’t have one of their recognized systems as of this week for new business and a month from now for renewals, you will no longer be able to get OPCF 43/43A coverage.”

Sommerfeld had this to say about the actions listed by CAA: “To remove the entire surcharge, the owner must install an aftermarket immobilizer – either CAN-Phantom or Autowatch Ghost II – professionally installed with proof of payment.

“To remove half of the surcharge, the owner must install other aftermarket immobilizers, or cut-off systems including engine wire kill switch, fuse box kill switch, remote or car battery kill switch, fuel cut-off, or any two-factor authentication system (needs a PIN to start), proof of purchase and installation to be provided.

“To reduce the surcharge to $500, the owner can opt for a steering wheel lock, a brake pedal lock, a wheel and tire lock, keyfob signal blocking (excluding Farady devices), or retractable bollards.”

A recent report by Équité Association showed that in the first half of 2024, auto theft crimes decreased 17% nationally compared to the same period last year.

What do you think about this story? Share your thoughts in the comments below.