InvestorQ : Is it true that installing an anti-theft device can lower my car insurance premiums?
Sadaf Khan made post

Is it true that installing an anti-theft device can lower my car insurance premiums?

nishi Shah answered.
3 years ago

Yes. It is true that by installing an anti-theft device, you can lower your car insurance premium significantly.

First up, let’s understand what an anti-theft device is- an anti-theft device is an instrument that is fitted in a car to boost its security. This device protects the car from being stolen and also brings down the car insurance premium significantly.

While it might seem like an unnecessary cost to the car owner, fact is installing this device will help reduce your insurance premium. This is because from the point of view of the insurance company, a policyholder who has installed an anti-theft device is a responsible owner. Additionally, the vehicle gets an added cloak of security, thereby protecting it from man-made threats such as vandalism as well as thefts.

Considering this added security feature and the policyholder’s responsible behaviour, the insurance company rewards the customer with a discount on his/her car insurance premium discount.

Car insurance providers give about 2.5% discount in car insurance premium, up to a maximum of Rs. 500. Do note, this does not correspond to the entire premium for the policy and is only on the own-damage part of the annual premium.

If you are planning to install an anti-theft device, then purchase one that’s approved by the Automobile Research Association of India (ARAI). Experts advise installing an anti-theft system at the very beginning of one’s policy coverage. However, if you are installing an anti-theft instrument in the middle of a policy year, then the premium discount will be applicable for the remaining policy period on a pro-rata basis.

When you renew your insurance policy, do produce the details of the premium discount you availed previously, if any, so that you can get a discount on renewal premium as well.