Insurance Anti Theft Device – Do You Really Need One for Coverage?

Vehicle theft rates are rising across Canada, and insurers are taking notice. Drivers are now receiving letters from their providers requesting the installation of an insurance-approved anti theft device or facing increased premiums. But what exactly qualifies? And why is this happening now?

This guide explains why insurance companies are making these requests, what kind of anti theft devices are accepted, and how to respond quickly and effectively—with the help of certified professionals.

Why Are Insurance Companies Requiring Anti Theft Devices?

Auto theft is no longer a rare risk—it’s an ongoing and expensive problem. In regions like Toronto and the Greater Toronto Area (GTA), high-tech car theft techniques like key cloning, relay attacks, and signal boosting have caused insurance losses to skyrocket.

As a result, providers are:

Sending letters to owners of high-risk vehicles
Requiring aftermarket anti theft immobilizers or certified GPS systems
Charging surcharges if proof of installation isn’t provided

Did You Know?

In some cases, adding a certified insurance anti theft device for car may reduce your premium or completely waive the surcharge, depending on your provider.

Which Devices Qualify as Insurance Anti Theft Devices?

Insurance companies recognize only specific types of devices that meet safety, installation, and certification standards. Here’s a breakdown of the most commonly accepted options:

1. Aftermarket Anti-Theft Immobilizers

These are electronic devices installed in your vehicle that prevent the engine from starting unless a unique PIN sequence or paired device is detected.

Key Features:

Cannot be bypassed using cloned keys
Hidden within the vehicle
Often TASSA-verified or FCC-certified
Do not rely on factory alarm systems

Example: Ghost II Immobilizer (recognized by insurers due to TASSA verification)

2. GPS Tracking Devices

These trackers allow your vehicle to be located if stolen. Some, like KYCS Locate, are self-powered and activate real-time tracking mode if theft is detected.

Why They Qualify:

Long battery life (5–7 years or more)
Cannot be easily detected or tampered with
Send tracking signals to assist law enforcement
FCC-certified or otherwise recognized

3. Kill Switch Anti-Theft Systems

A kill switch is a basic yet effective anti-theft device that interrupts a specific part of your vehicle’s electrical or fuel system—typically the ignition, starter, or fuel pump. Unless the switch is disengaged manually or via a hidden input, the vehicle won’t start.

Unlike advanced aftermarket anti-theft immobilizers—which are digitally programmed to require PIN codes or encrypted signals—kill switches rely on physical interruption. They don’t interact with your car’s CAN bus or require electronic programming.

Why Insurance Companies May Accept Them:

They provide a physical barrier to theft by disabling engine start-up.
When professionally installed, they’re considered a valid theft deterrent.
They’re low-cost and discreet, but less sophisticated than modern immobilizers.

Important: A kill switch doesn’t provide the same layered, programmable security as immobilizers like the Ghost II. However, for basic protection, it remains an accepted solution by some insurers—particularly when supported by documentation.

What Vehicles Are Considered High Risk?

Insurance companies tend to target models that are:

Frequently stolen in your area
Equipped with keyless entry systems
Lacking factory immobilizer protection
Luxury or high-end vehicles with high resale value

If you’ve received a letter, your vehicle likely fits one or more of these criteria.

What Happens If You Don’t Install an Anti-Theft Device?

Failing to comply with your insurance provider’s request could result in:

Higher premiums or surcharges
Loss of theft protection coverage
Ineligibility for comprehensive coverage

Important: These changes may apply even if your car has a factory-installed alarm. Insurance companies increasingly require aftermarket verification.

Types of Anti Theft Devices That Insurers Accept

Not all anti-theft systems meet insurance standards. Many factory alarms and GPS apps don’t qualify. Here’s a breakdown:

Device Type	Description	Insurance Approval
Aftermarket Immobilizer (Ghost II)	Prevents the vehicle from starting without a secret PIN or fob	✅ TASSA-approved (Ghost II)
GPS Tracker (KYCS Locate)	Locates vehicle; activates real-time mode in theft situations	✅ Often accepted (FCC-certified)
Steering Wheel Locks	Physical deterrent, visible to thieves	❌ Not always accepted
Factory Alarm Systems	Built-in alarms that sound when tampered with	❌ Usually not sufficient
OBD Port Locks	Prevents signal relay or CAN injection attacks via the diagnostic port	⚠️ Sometimes accepted

How to Respond If You Receive a Letter – insurance anti theft device

Step 1: Read the Letter Carefully

Check what type of insurance anti theft device is being requested. It may specify an immobilizer, GPS, or allow a range of options.

Step 2: Choose a Certified Installer

Make sure the installer you choose is:

Certified or approved by the device manufacturer
Able to issue an installation certificate
Familiar with insurance documentation requirements

Step 3: Book the Installation

In many cases, same-day service is available. Be sure to confirm that you’ll receive an insurance-approved certificate after the installation.

Frequently Asked Questions (Q&A)

Q1: Will my factory alarm qualify as an insurance anti theft device?

In most cases, no. Factory alarms often fail to meet insurer requirements. Insurance companies prefer aftermarket devices with independent certification.

Q2: How do I prove I installed an insurance anti theft device?

You’ll receive an installation certificate & proof of purchase from a certified installer, which can be submitted to your insurance provider.

Q3: Can I avoid the surcharge completely?

Yes, if you install a qualified device and submit proof in time, many insurers will waive the theft-related surcharge.

Q4: What if I no longer have the letter?

Contact your provider. If your vehicle is on their high-risk list, they’ll confirm what’s required.

Essential Overview about insurance anti theft device

Insurance companies may require an anti theft device for car if your vehicle is deemed high risk. Accepted options include aftermarket immobilizers, GPS trackers, and vehicle marking systems. Devices must be certified and professionally installed to qualify for a certificate, which is submitted to your insurer. Factory alarms alone often do not meet these requirements. Adding an insurance-approved device may reduce or remove surcharges.

Car theft isn’t what it used to be. Today’s thieves don’t need crowbars or hot-wiring—they rely on wireless hacks, relay attacks, and key cloning to drive off with high-value vehicles in seconds. Many drivers still believe that factory alarms and built-in security features offer full protection, but modern theft methods have outpaced factory systems. If you want real security, it’s time to look at the benefits of an anti theft immobilizer—and why devices like the Ghost II Immobilizer are quickly becoming the go-to solution for serious vehicle protection.

Monty’s Locksmith: A Leader in Vehicle Security

Entrusting your vehicle’s security to Monty’s Locksmith means choosing a company that is not only a leader in automotive locksmith services but also deeply committed to customer satisfaction, as evidenced by our extensive positive reviews and CAA affiliation.

Monty’s Locksmith, in partnership with CAA, offers you not just a product but a solution to elevate your vehicle’s safety. Don’t miss out on the advantages of an Ghost2 anti-theft device—make the smart choice today and enjoy the added security in every journey you take. Your car deserves it, and so do you!