Car alarm insurance discount
7 minute read Published on Nov 17, 2025 by BrokerLink Communications
Car theft remains a growing issue across Canada. According to the Ins urance Bureau of Canada, over 105,000 vehicle thefts occurred in 2022, with Ontario, Alberta, and Quebec being the provinces most affected. Surprisingly, it's not older vehicles that are the prime target for auto theft, it's high-end SUVs, pickup trucks, and push-to-start models.
To put this into perspective, in Ontario, car theft claims surged by 561% between 2018 and 2023, costing insurance companies over $371 million in 2023 alone. The result? Insurance premiums are becoming more expensive, especially for those driving the most commonly stolen vehicles.
But don't worry, there is some light at the end of the tunnel: anti-theft prevention discounts for car owners. If you’ve installed a car alarm or another approved anti-theft device in your vehicle, your insurance company may offer you a discount of 5% to 15% on your premium. It’s a simple way to keep more money in your pocket and avoid becoming a statistic.
What counts as an anti-theft system?
Anti-theft devices are intended to do exactly what they say they do: to deter thieves and prevent car theft. While thieves are becoming more technologically sophisticated, so are these devices. So, what exactly qualifies as an anti-theft device? Here are the most common types of anti-theft systems that could qualify you for a discount:
Alarm systems
All modern vehicles come equipped with standard car alarms that sound when someone is trying to break into your car. Car alarms are intended to notify people in the area that someone is trying to break into the vehicle and can act as a strong theft deterrent, especially in busy locations with numerous witnesses.
GPS tracking systems
GPS trackers track your vehicle's whereabouts in real-time. While tracking systems may not directly prevent car theft, they can help in vehicle recovery efforts to ensure your car is returned to you. Common vehicle recovery systems such as OnStar and LoJack are more sophisticated in nature, while something as simple as a hidden Apple AirTag can work just as well.
Steering wheel locks
Steering wheel locks are as old school as they come. Fitting directly on your steering column, these prevent vehicle theft by locking your steering wheel in place, so potential thieves are unable to move your car from where it's parked.
Engine immobilizers
Engine immobilizers are a type of theft prevention device that prevents your vehicle's engine from starting unless the right key or key fob is used.
360 dash cameras
360 dash cameras record your surroundings while behind the wheel and parked. This footage is directly saved onto your phone and is often accessed using a mobile app that you can view and share at any time.
Ultimately the more layers of protection you have for your vehicle, the better. Not only does it make your car harder to steal, but it could also make your auto insurance premiums more affordable.
How auto insurance companies are dealing with auto theft
With auto theft on the rise across Canada, insurance companies have had no choice but to make changes. Here's what's happening:
Increased car insurance premiums
While car insurance rates for all Canadians have increased, if you drive a certain make and model of vehicle that is prone to auto theft, you can expect to pay even more for your auto insurance policies. As of 2023, the top 5 vehicles prone to theft according to Equité Association include:
Vehicle Type | Model Year | Total Number of Vehicles Insured | Theft Frequency |
|---|---|---|---|
Toyota Highlander | 2021 | 123,532 | 2.76% |
Dodge Ram 1500 Series | 2022 | 524,837 | 0.59% |
Lexus RX Series | 2022 | 96,400 | 3.15% |
Honda CR-V | 2021 | 487,962 | 0.61% |
Toyota RAV4 | 2021 | 507,451 | 0.53% |
Mandatory anti-heft device requirements
Some insurance companies like TD Insurance and Intact now require anti-theft devices for high-risk vehicles. If you don’t instal one, these insurance companies may refuse to provide you coverage.
Anti-Theft discounts
On the positive side of things, insurance providers across Canada are now introducing anti-theft device discounts to vehicle owners who have vehicles with factory and aftermarket anti-theft devices, which can help drivers save up to 15% on their insurance premiums. Read on for a breakdown of anti-theft device discount options:
Types of anti-theft device discounts
Depending on what province you live in, you may qualify for specific anti-theft discounts. Here's a breakdown of the different types of anti-theft discounts:
1. Factory-Installed systems
In British Columbia, ICBC states that drivers with vehicles that have electronic immobilizers may be eligible for savings on their comprehensive coverage or specified perils coverage.
2. Aftermarket anti-theft devices
Aftermarket anti-theft devices like alarms, GPS trackers, and dash cameras can also qualify drivers for car insurance discounts between 5% and 15%. These devices can be especially important for those with older vehicles that are not already equipped with anti-theft measures.
3. Vehicle recovery systems
Equipping your vehicle with a recovery system, such as a TAG system and KYCS Locate install tag, can also lead to additional savings on insurance rates. For example, TD Insurance offers anti-theft discounts on comprehensive coverage, specified perils, or all perils coverage premiums when customers have these devices installed.
4. Deductible rebates
In some cases, insurance providers may also offer deductible rebates when an anti-theft device successfully prevents a theft or aids in the recovery of a stolen vehicle. For example, ICBC provides a $100 deductible rebate if you install an anti-theft device that prevents thieves from stealing your vehicle or helps in the recovery of your stolen vehicle.
It's important to remember that auto insurance discounts vary by province and insurance company. It's recommended that you speak with your insurance provider to determine whether you're eligible to save money on your insurance policy.
HowAlarm discounts work with Canadian insurers
As we mentioned, anti-theft car insurance discounts will vary between car insurance companies. Here's a closer look at how some of Canada’s top auto insurance providers deal with car alarm and anti-theft discounts:
Desjardins
Desjardins offers customers a car insurance discount on their comprehensive policy if their vehicle has a before-market or aftermarket anti-theft system. Before installing your anti-theft system, ensure it's been approved by Equité Association
TD insurance
TD Insurance encourages customers to invest in TAG installations to prevent theft and help recover stolen vehicles. If you have a high-theft vehicle, TD insurance may require that you have a TAG system installed, along with other anti-theft devices. Note that aftermarket devices may need to be verified by TD insurance before you qualify for lower insurance rates.
Intact insurance
Intact Insurance provides a 20% discount on comprehensive premiums for vehicles that have approved anti-theft devices like TAG, KYCS Locate, or Domino. Other aftermarket anti-theft devices may be eligible for a 10% discount.
Another thing to note is that as of July 2024, Intact Insurance has imposed a $500 surcharge on customers who drive vehicles designated high-risk. To have the surcharge removed, customers need to install an approved anti-theft device. Once installed, the surcharge is removed, and a 20% discount on their car insurance premiums is applied.
Aviva
Aviva Canada provides insurance savings to customers who install certified vehicle anti-theft recovery devices. If the car's VIN indicates the existence of integrated anti-theft devices, such as immobilizers or alarm systems, these features can help bring your premiums down, making your coverage more affordable.
How to apply for an anti-theft auto insurance discount
If you're up for an insurance renewal and want to save money on your auto insurance costs, here's what you need to do to apply for an anti-theft auto insurance discount with your insurance company:
1. Install an approved Anti-Theft Device
If your vehicle is not already equipped with an anti-theft device or system, you'll need to install a recognized anti-theft system. Common devices approved by many insurance companies in Canada include:
Aftermarket car alarms and immobilizers
Vehicle tracking systems like TAG or KYCS Locate
Because not all devices qualify for auto insurance discounts, make sure to speak with your insurer beforehand to confirm that the device you're installing has been pre-approved.
2. Keep proof of your installation
Most insurers will want proof that you've installed your approved anti-theft device on your car. Make sure to keep:
An installation receipt
A certificate from the alarm or tracking company
3. Contact your insurer
Reach out to your insurer or broker directly. Ask them about available anti-theft auto insurance discounts, let them know what system you've installed, and submit any required documents they may require.
4. Review your policy annually
Things are constantly evolving within the insurance industry, which is why it's important that you double-check that your discounts still apply. You may qualify for new savings on your car insurance policies.
Other ways to save on your car insurance
With rising premiums across the country, more and more Canadians are looking for ways to keep more money in their pockets without sacrificing the level of protection they receive from their auto insurance. Luckily, there are other ways to save on your premiums beyond installing an anti-theft device in your vehicle. Here's what you need to do:
Bundle your auto and home insurance
Have more than one insurance policy? Consider bundling your insurance plans with the same insurer to receive a discount of up to 20% on each policy!
Opt for higher deductibles
Generally speaking, opting for a higher deductible can help lower your insurance rates. Remember, a deductible is the amount of money you pay out-of-pocket when filing insurance claims before your provider will cover any remaining expenses. By taking on more financial responsibility, insurers offer customers savings.
Ask about other insurance discounts
There are numerous other discounts you may qualify for with your insurance company, including:
Installing winter tires on your vehicle can save you 15% on your coverage.
Never been in an at-fault accident? You may qualify for a discount for remaining claim-free!
Maintaining a clean driving record can also help drivers save up to 15% with the safe driver discount.
Pay your premiums upfront
Many insurance companies add 3 to 5% surcharges on customer accounts who pay monthly, as it costs them money to process their payments. To avoid these surcharges and save on your car coverage, consider paying for your insurance upfront.
Drive a vehicle with highly rated safety features
In the market for a new car? Consider buying one with highly-rated safety features like electronic stability control, anti-lock brakes, and other systems to lower your risk of being involved in a collision.
Shop around
If you live in a province with a private insurance system, you can shop around with different insurance agents to compare rates and coverage options. Doing so can help you save hundreds of dollars on your coverage.
The bottom line
Car theft is a real problem in Canada that affects thousands of Canadians annually. But that doesn't mean you can lower your risk of falling victim to car thieves while saving money on your insurance.
If you need car insurance and are looking for ways to save, the experienced brokers from BrokerLink can help. We've got access to numerous policies from top providers, allowing us to provide you with full coverage customized to your needs and budget. If you're looking for:
Or other types of auto insurance, contact BrokerLink over the phone or by email to speak with someone directly. You can also get a free quote using our online quote tool at any time!
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