Ontario man to pay $1,500 surcharge after insurer says his SUV is at higher risk of theft

An Ontario man says it is "unfair" to pay a $1,500 insurance surcharge because his four-year-old SUV is at a higher risk of being stolen.

"I find it excessive, and I find it unfair," Cliff Whiting of Ancaster, Ont. told CTV News Toronto.

Whiting has a 2020 Toyota Highlander with just under 100,000 kilometres on the odometer. He said he has had no accidents, claims or tickets.

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Still, his insurance company, CAA Insurance, told him he must either install an anti-theft system, which will cost him $1,000 to $1,500, or pay an annual $1,500 surcharge.

"I have been driving since 1975 without an incident so I have a hard time with a 144 per cent increase when nothing has happened," said Whiting.

A spokesperson for CAA Insurance told CTV News Toronto that many insurers have introduced these surcharges for vehicles at the most risk of theft.

"We have adopted a targeted approach, focusing only on the highest-risk vehicles so that most drivers don't experience higher premiums due to theft," the spokesperson said.

"Impacted CAA Insurance policyholders have options to reduce or eliminate the surcharge by implementing additional layers of protection, such as the professional installation of an after-market immobilizer or installing and using a steering wheel lock like the club."

The insurer adds that it continues to call on the federal government and auto manufacturers to mitigate thefts, as vehicle immobilizer standards have not been updated since 2007.

"These updates, including incorporating multi-factor authentication, will help protect drivers and establish long-term solutions to this growing challenge," CAA said.

The insurance industry had to pay out more than $1.5 billion due to auto theft in 2023 and it's driving up costs for everyone. According to RATESDOTCA, many insurance companies are adding surcharges to vehicles at higher risk of theft.

"They are introducing them on vehicles that are newer, so on a 2019 to 2024 Toyota Highlander, you may have to pay the surcharge, but if he had a 2017 model, he wouldn't be subject to the surcharge," said Daniel Ivans, an insurance expert, with RATESDOTCA.

Ivans said one way to save money on insurance is to drive an older vehicle.

The 2024 Dodge Ram is 61 per cent more expensive to insure than the 2018 model. You can also save money on insurance by choosing a vehicle not considered at high risk for theft, like the 2024 Volkswagen Jetta, for example, which is six per cent more expensive to insure than its 2018 model.

"There are a lot of insurance companies that are not surcharging these models that might require a mobilizer or whatever the case may be so it's a good idea to see what other companies are offering," said Ivans.

In Whiting's case, he can reduce the surcharge by $500 by using a steering wheel lock, but he said he hasn't decided yet if he will spend up to $1,500 on an anti-theft system to try and avoid the surcharge completely.