Is there any discount available in Car Insurance Policy if I install an Anti-theft alarm and Locking system?

Generally, car insurers give a 2.5% discount on the premium rates for a maximum of Rs. 500 if the vehicle is installed with an anti-theft device. However, note that the discount is usually available only for the insurance cover offered for damages caused to your vehicle during an accident, and does not include discounts on the premium for third-party cover.

Insurance companies consider those car owners responsible who have anti-theft devices installed in their vehicles. Due to the installation of such devices, the number of stolen cars are bound to drop and it is in favour of the insurers as there are fewer cases of claim. Therefore, insurance companies encourage car owners to install anti-theft devices in their cars by offering lucrative discounts on insurance premiums.

If the installation of the anti-theft device is done after you have bought the policy, the insurance company will calculate the discount on a pro-rata basis for the remaining policy tenure as per the tariff provision.

However these days many cars come fitted with anti-theft devices. Many car manufacturers such as Ford Motors, Toyota, Maruti Suzuki and Mahindra have inbuilt anti-theft systems in their high-end models. Not just cars, insurance companies also want to make anti-theft devices mandatory in two-wheelers and other vehicles also as it would help reduce the cost of filling in the motor vehicle insurance claims.