Using Technology and Insurance to Help Prevent Car Theft
Your car, unfortunately, has been stolen and it’s often difficult for police to ever recover it. What can you do to help prevent your vehicle from being stolen?
You can use a vehicle tracking system and get comprehensive car insurance coverage to help prevent car theft.
How vehicle tracking systems help when your car is stolen
Real-time location tracking
If your car is stolen, the real-time location data provided by the tracking system can help police quickly locate and recover it. This immediate response often increases the chances of recovering the vehicle intact.
Reduced recovery time
With precise location information, recovery times can be significantly reduced. The faster the authorities can find your vehicle, the less likely it is to suffer damage, be stripped for parts, or sold illegally.
Deterrent effect
The presence of a visible tracking system or badge can deter thieves from targeting your vehicle in the first place. Car thieves know that a vehicle equipped with a tracking device is much more likely to be recovered on the same day, making it a less attractive target.
Insurance discounts
Many insurers offer discounts on premiums if your car is equipped with a tracking system, because they know it reduces the chance that your car will be stolen in the first place and that it’ll result in a car missing or car damaged claim. These discounts mean more cost savings over time.
How comprehensive insurance covers car theft
Comprehensive insurance is an optional coverage for your car. This type of insurance provides financial protection against car theft. This means that if your vehicle is stolen, your car insurance policy typically covers the replacement cost or the actual cash value of the car, minus your deductible. Even if your car is stolen, you are not left to bear the financial burden alone.
Comprehensive insurance also covers damage to your vehicle from other incidents like vandalism, natural disasters, and fire. This broad protection should be considered essential, especially if your car is stolen and later found damaged. Knowing that you have comprehensive coverage offers peace of mind.
Many comprehensive insurance policies even offer rental car reimbursement, which covers the cost of renting a vehicle while your claim is processed, if your car is not recovered quickly.
How a vehicle tracking system can help with insurance claims
Faster and more accurate claim processing
Having a vehicle tracking system installed can expedite the claims process by providing concrete proof that your vehicle was stolen. The system provides detailed data, such as the last known location of the vehicle and the time it was stolen, and even evidence of tampering, which can be valuable information for the insurance company when verifying the details of your claim.
If your car is recovered quickly due to the tracking system, the extent of damage is usually less severe, which will reduce the overall cost of the claim, potentially keeping your insurance premiums lower in the future.
Increased trust with insurers/h3>
Insurance companies generally view policyholders with tracking systems as lower-risk clients since these devices demonstrate a proactive approach to vehicle security. Not only will having a tracking system make it easier to file your claim with the maximum information available, but it could also mean gaining premium discounts on your car insurance from the start.
Vehicle tracking 101: What is a telematics device?
A telematics device is a small piece of tech installed in a vehicle that collects and transmits data about its location, speed, driving behavior, and engine diagnostics.
Telematics devices use a combination of GPS and onboard diagnostics to monitor the vehicle's movements and performance. In the event of a car theft, a telematics device can provide real-time tracking information to help locate and recover the vehicle quickly.
Hot tip for business owners: Telematic devices are often used in commercial fleet management to improve safety, reduce fuel consumption, and optimize routes. Even if you only use a few vehicles for your business, it’s well worth having a vehicle tracking system installed on them.
What’s the difference between GPS navigation systems vs GPS tracking systems?
While tracking devices are similar to in-car navigation systems, there are a few key differences:
- GPS navigation systems: These systems show drivers their location on a digital map and provide driving instructions to get to a designated point. They are only designed for navigation purposes and finding the best route to your destination.
- GPS tracking systems: These devices use GPS technology to track a vehicle’s current location and trip history. The GPS data is then broadcasted to your computer, smartphone, or tablet. Unlike navigation systems, tracking systems are primarily used to monitor and report the vehicle's location, which is particularly valuable when a car is stolen.
Some products offer both systems in one, but your GPS Navigation System may not automatically include a tracking service, so double check!
Is my data safe when using a vehicle tracking system?
While it’s clear that vehicle tracking systems provide numerous benefits, it’s normal to be concerned about data privacy and security. If your location data isn’t handled correctly, there’s a risk of it being accessed by hackers, leading to unauthorized access to your location and personal information. The good news is that these tracking systems are locked down with strong security measures.
For your personal safety and security, here’s what you need to know about this tech:
Reputable vehicle tracking systems use encryption and other security measures to protect your data.
This includes securing the communication between the device and the server, as well as protecting stored data from unauthorized access.
To minimize risks, choose a trusted tracking system provider that complies with data protection regulations and has a strong reputation for security. Look for providers that offer clear privacy policies, regular software updates, and robust security protocols. It’s always a good idea to check their reviews online before purchasing a device.
Take a moment to read the fine print during set up and installation to understand how your data will be used and who will have access to it. Some providers may use your data for analytics, marketing, or other purposes. Always read the privacy policy and opt out of any data-sharing practices with which you are uncomfortable.
Rising incidents and costs of vehicle theft
In 2023, the number of motor vehicle theft incidents in Canada increased by 8,940 cases (or 8.44%) compared to the previous year, totaling 114,863 incidents. Alongside this surge, the cost of insurance claims for replacing stolen vehicles skyrocketed to a record-breaking $1.5 billion, marking the second consecutive year that auto theft claims costs have exceeded $1 billion.
For perspective, between 2018 and 2021, auto theft claims costs averaged $556 million annually. Ontario drivers have been the most affected, where auto theft claims costs increased by 524% between 2018 and 2023, reaching over $1 billion for the first time just last year.
As vehicle theft continues upwards, having protective measures like vehicle tracking systems and comprehensive insurance is more important than ever. Here’s what you need to know:
Vehicle tracking systems and comprehensive insurance work hand-in-hand to protect you in the event of car theft. Tracking systems can help recover a stolen vehicle or speed up the claims process and enhance trust with insurers, while still protecting your location data. Meanwhile, comprehensive car insurance gives peace of mind that your finances or ability to get to work won’t be too drastically affected by car theft.
With rising vehicle theft incidents and the skyrocketing costs of insurance claims — such as the 524% increase in auto theft claims costs in Ontario from 2018 to 2023 — it’s worth thinking about putting these extra protective measures in place.
