With the rising theft cases in India, installation of anti theft devices has become a must in many locations
For many, owning a car is a dream come true. To safeguard this precious asset, many vehicle owners are opting to install an anti-theft device which instantly alerts them in case of car theft. Car thefts in India surged by 2.5 times in 2023 compared to 2022, with Delhi being a major hotspot, while Chennai and Bengaluru saw significant increases. About 36,000 vehicles are stolen annually in India. The installation of anti-theft devices has become a must in many locations, thus coming in handy in case of car theft. Moreover, the device also helps you avail discounts on car insurance premiums. Read on to know all about the impact of anti-theft devices on car insurance.
Anti-theft device and Car Insurance
An anti theft device is an electronic device that keeps your car secured against any theft. With the use of technology, the vehicle owner is instantly notified. The device may come in the form of a lock or an alarm.
Relation between Car Insurance and Anti-theft Devices
In case of car theft, as per the policy terms and conditions, the car owner gets the amount up to the insured declared value. In case nothing happens, the policyholder does not get any coverage for theft.
Hence, it is in the interest of the insurer that the vehicle owner insures the car to protect it against theft. With the installation of an anti theft device, the car's security is enhanced, thereby making it easy for the vehicle owner to track the car.
Insurance companies encourage vehicle owners to install anti theft devices in their vehicles and also offer discounts for the same. Indian insurance companies only offer discounts on installation of devices certified by Automotive Research Association of India (ARAI).
Benefits of Installing Anti-theft Device in Cars
While Anti-theft devices are a security add-on to your car, it has more benefits than you think and are not limited to safeguarding your vehicle. Here are all the benefits that come with anti-theft devices in a car:
Prevents Theft
Discount on car insurance
Swift Claims Settlement Process
Avoid Inconvenience
Financial Safety
Anti theft devices help in prevention of theft by instantly notifying the vehicle owner about the attempt to steal the vehicle. The device also helps in stopping the theft as the car alarms the people near the car who can catch hold of the thieves.
You can earn a discount on comprehensive car policy by installing anti theft devices. The discount is offered both on renewal and on a new purchase. However, If you plan to install the device then it is important to inform the insurance company about the security measure via email or call.
If you have actively taken measures to safeguard your car by installing the device, but despite that, the car is stolen, then the insurance company will offer you a swift claims settlement process. It can give the insurance company a sense of assurance that you did the best to prevent the theft.
In case of car theft, visiting the police station, filing an FIR claim, submitting documents to the insurance company for claim, etc. can be a daunting process which can be avoided by installing an anti theft device which quickly raises alarm in case of a theft attempt.
when you raise a claim in case of theft then you will be eligible to receive value up to insured declared value.
Different Types of Anti-theft Devices for Cars
Given below are different types of anti theft devices that are approved by ARAI.
1. GPS Tracking
This type of device works based on Global Positioning System offering a real time location of the vehicle when it is active
2. Car Alarm
This is a sound based device which instantly alerts the people around the car, notifying them about tampering or potential theft.
3. Electronic Immobilizer
Few advanced car keys come with a technology that sends signals to the car to start its engine. The car does not start without the signals.
4. Kill Switch
This device switches off the engine of the car until you own it again. To prevent thieves from accessing the switch, such devices are usually installed in a hidden location.
5. Dashcam
A dashcam records video footage of your car’s surroundings while driving or parked, helping provide evidence in case of accidents or attempted theft.
Cost of Anti-Theft Devices
Here are the estimated costs of anti-theft devices that you can put up in your car:
| Anti-Theft Device | Approximate Cost (INR) | Notes |
|---|---|---|
| GPS Tracker (real-time) | ₹5,000 – ₹20,000 + ₹500–₹2,000/month subscription | Provides real-time tracking of the vehicle |
| Steering-Wheel Lock | ₹800 – ₹2,500 | Mechanical lock to prevent steering movement |
| Engine Immobiliser | ₹3,000 – ₹10,000 | Disables engine ignition when unauthorised |
| Car Alarm & Central Locking | ₹400 – ₹5,000 | Alerts during break-in and controls locks |
| Kill Switch / Battery Cut-off | ₹300 – ₹2,000 | Cuts power to prevent starting the car |
| Dashcam | ₹3,000 – ₹15,000+ | Records incidents and acts as a deterrent |
Note: These are estimates based on market prices, for accurate prices, visit a garage.While these devices are moderately cheap, they can help you secure your prized possession that costs lakhs. Also, anti-theft devices ensure discounts on car insurance as well – so it's a win-win!
Things to Consider While Choosing Anti-Theft Devices
Choosing the right anti-theft device ensures better security and peace of mind for your vehicle.
Type of Device
Installation Requirements
Budget
Maintenance & Subscription
Reliability & Brand
Ease of Use
Select a device based on your car model, usage, and risk level—mechanical locks, electronic immobilisers, or GPS trackers.
Consider whether professional installation is needed and if it may affect your car warranty.
Balance cost with effectiveness; some high-end devices offer more features but may be expensive.
Check for recurring costs like GPS tracking subscriptions or battery replacements.
Choose reputed brands with proven performance and positive user reviews.
Ensure the device is simple to operate daily without causing inconvenience.
Anti-theft Device and its Impact on Car Insurance Premium
Installing anti-theft devices can positively impact your car insurance premium by reducing the risk of theft. Insurers often offer discounts ranging from 2% to 5% for vehicles equipped with approved security systems like immobilisers, GPS trackers, or steering-wheel locks. The exact reduction depends on the type of device, its effectiveness, and the insurer’s policy. This not only enhances vehicle security but can also lead to long-term savings on your insurance costs.
It is important to know that installation of anti theft devices is not mandatory in the car. While it can help you get a discount, it can also prevent your car from being stolen.
Summing Up
Investing in an anti-theft device enhances your car’s security by preventing unauthorised access and reducing the risk of theft. At the same time, it can lower your car insurance premium, as insurers often offer discounts for vehicles equipped with approved security systems. This dual benefit ensures peace of mind while also providing potential long-term savings on insurance costs. Overall, a small investment in the right device can protect both your vehicle and your finances.
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Frequently Asked Questions
Is it mandatory to install an anti-theft device in my car?
It is not mandatory for all cars, but some insurers may require certain devices for specific policies or higher-value vehicles.
Do new car models come with built-in anti-theft devices?
Yes, many modern cars come equipped with factory-fitted anti-theft features such as immobilisers, alarms, or GPS tracking.
What is the anti-theft device discount in car insurance?
Insurers typically offer a discount of 2% to 5% on premiums for vehicles with approved anti-theft devices installed.
Can I transfer my anti-theft device to a new vehicle if I decide to change my car?
In most cases, yes—especially for portable devices like steering locks or GPS trackers—but some electronic systems may require reinstallation or re-registration with your insurer.
What if my car gets stolen despite having an anti-theft device?
The device reduces risk but does not guarantee prevention. Your insurance claim can still be processed if the vehicle is stolen, provided all policy conditions are met.
