It’s no secret. There is an auto theft epidemic across the country and Ontario is at the center of it.

This news comes as no surprise to anyone who has recently looked at his or her auto insurance bill. Insurance companies have begun to introduce additional surcharges for some of the most stolen vehicles across the country.

CAA, for example, recently announced that it would be requiring a $1,500 surcharge on a list of vehicles, see below, (2020 or newer):

• Chevrolet Suburban and Tahoe;
• GMC Yukon;
• Land Rover Defender;
• Range Rover (including Sport, Evoque, Velar);
• Lexus GX 460, RX 450, RX 350;
• Toyota 4Runner;
• Highlander (including Grand Highlander);
• Acura RDX;
• Dodge RAM 1500;
• Jeep Wrangler; or
• Any vehicle with MSRP of $125,000 or higher (excluding electric vehicles).

CAA will reduce or eliminate this surcharge if owners take certain safety precautions with their vehicle:

• To have the entire surcharge removed, owners must install an aftermarket immobilizer
• Owners who install other aftermarket immobilizers, or cut-off systems such as engine wire kill switch, fuse box kill switch, remote or car battery kill switch, fuel cut-off or any two factor authentication system (needs a PIN to start), will be eligible for a removal of the charge upon providing proof of purchase and installation
• In order to reduce the surcharge to $500, owners can use a steering wheel lock, a brake pedal lock, a wheel and tire lock, keyfob signal blocking (excluding Farady devices) or retractable bollards

CAA is not alone in its introduction of this surcharge. Insurers such as Economical/Definity, Chubb Insurance, and Aviva have introduced similar systems.

This insurance surcharge also has implications for dealers when they are selling vehicles. As UCDA members are well aware, dealers are required to disclose all material facts regarding a vehicle to their customers.

A material fact is any information that may affect the customer’s decision to purchase or lease a vehicle. Whether a vehicle is a high-target for theft, that carries an insurance surcharge, is arguably a material fact requiring disclosure. Disclose this in writing on your bill of sale to avoid controversy in future.

While dealers may be required to disclose whether a vehicle is on the list of most stolen vehicles, dealers should not allow this to cost them sales. Instead, dealers and salespeople may want to use this conversation surrounding auto theft as an opportunity.

If your dealership works with an anti-theft device company or an insurance company that provides a discount for car owners who install anti-theft devices, this may be the perfect opportunity for the dealership to try to sell the customer on these products.

Dealers should keep in mind that while they can provide the customer the choice to purchase these products, they should not force customers to purchase an insurance policy or anti-theft device as part of the sale of a vehicle. That is tied selling and is illegal.

Consumers are not the only ones who can enjoy insurance savings for the use of anti-theft protection. Dealers who are on Baird MacGregor’s UCDA Insurance program already enjoy a 5% discount on their insurance premium if they are set up with KYCS ‘Locate Lot Protection & Vehicle Recovery Plan’ or the Silent Sentinel Vehicle Anti-Theft Protection Plan—for a total savings of 10% if they use both products!

Members interested in applying for Baird MacGregor’s UCDA Insurance program can inquire about the application process by calling the main telephone line at (416) 231-2600.