A TAG recovery system may help you find your vehicle if it is stolen. Keep in mind that not all vehicle thefts can be avoided.
Before committing to a TAG system, you should learn more about the product, warranty, cost, insurance savings, and privacy.
To weigh cost, recovery value and privacy, our content team reviewed FSRA’s current auto-theft pricing guidance, Insurance Bureau of Canada’s auto-theft prevention guide, the Office of the Privacy Commissioner of Canada’s connected-car research summary, and FSRA’s guide to saving on auto insurance.
Is TAG Tracking Worth It?
TAG tracking can be worth it if your insurer requires vehicle tracking, helps pay for an approved system, removes a high-theft surcharge, or reduces premiums enough to justify the cost of TAG.
It could be worth it if faster recovery of your vehicle is important to you.
TAG isn’t necessarily the best option for every vehicle or policy.
| Your situation | How to decide |
|---|---|
| Insurer requires an approved device | Find out more about who pays for it, which devices qualify, how long this condition lasts and what happens if the service expires. |
| Insurer confirms a discount or removes a surcharge | Using the written annual difference you recorded, is TAG Tracking worth the total cost, considering installation and renewal cost? |
| No confirmed insurance benefit | TAG tracking’s value lies primarily in whether you think its vehicle recovery service is worthwhile, considered separately, then compared with other approved vehicle security measures, including immobilizers and physical locks. |
| Vehicle is leased, financed or under warranty | Get written permission or warranty confirmation before having TAG tracking installed. |
How To Calculate Whether TAG Pays For Itself
Break-even years = (installed cost + any confirmed renewal fees − confirmed rebate) ÷ confirmed annual premium reduction.
Say it will cost $600 to have TAG installed in your car. You receive a confirmed $100 rebate, bringing the actual cost down. If the decrease in insurance is $125/year, TAG will have paid for itself in four years.
Use your own figures. Get quotes. If the decrease in insurance is zero, TAG will not pay for itself through insurance. In that case, its value depends on the chance of recovering the vehicle and any policy requirements.
Discounts and avoided surcharges affect the price differently. Ask the insurer to show the full policy cost with and without the approved tracking system, using the same coverage and deductibles.
How Does TAG Tracking Work?
TAG says its system uses a secure wireless network rather than conventional GPS or cellular networks. Confirm the geographic coverage, operational area and term of service with your TAG provider.
TAG is considered a recovery tool. Immobilizers can prevent or interrupt unauthorized engine starts. Examples of theft-prevention tools include steering wheel locks, OBD port covers, secure parking, and key fob safety. The Insurance Bureau of Canada encourages multiple layers of protection rather than relying on a single anti-theft device.
Read More: Compare TAG With Other Car Anti-Theft Devices
What Happens When A TAG-Tracked Car Is Stolen?
First, make sure your TAG-tracked vehicle is in fact missing. Move to a safe area. Do not attempt to locate or intervene. Your safety is more important. Call the police and report the theft.
Next, call your tracking provider using its current theft-reporting process. Let them know your vehicle has been stolen. Give them the police information. The TAG-tracker may be able to help the police with location information. Keep in mind, there is no guarantee of vehicle recovery, nor can its timing be guaranteed.
TAG’s terms say you must report the theft to law enforcement and TAG within four hours of learning of it. You will need proof of ownership and the police event number.
Finally, contact your insurer as soon as possible to begin the stolen-vehicle claims process. Include spare key/paperwork info, proof-of-loss requirements, rental or substitute-vehicle coverage (depending on your policy/endorsements), and inspection of the vehicle if it is recovered.
Read More: See What Happens When a Stolen Car Is Recovered
How Does TAG Tracking Affect Insurance?
The FSRA noted that some insurers encourage effective anti-theft devices, but insurer responses vary and some use surcharges for high-risk vehicles. No TAG discount or percentage reduction is agreed to by all insurers. Contact your insurer or broker for more information. Be sure to get the following information in writing:
- Whether an effective anti-theft device is mandatory or optional to insure your vehicle identified by VIN, or plays no role in their underwriting of your vehicle
- What anti-theft devices they consider effective (make, installer, etc.) and acceptable proof of installation
- If they offer a financial benefit and what it includes, such as premium reduction, deductible reduction, theft surcharge elimination, or rebate
- The difference in total annual premium with identical coverage with and without the device
- Whether they require an anti-theft device with active service at each policy renewal and how they confirm active service.
Read More: See How Comprehensive Car Insurance Covers Theft
Questions To Ask The Provider Before Paying
| Topic | Question |
|---|---|
| Price | What is the all-in installed price, tax, renewal fee and replacement cost after a collision or repair? |
| Service | Before you make payment to the provider, it’s always a good idea to find out how long will I receive active service? Where will the vehicle be able to be detected? What happens after service ends? |
| Theft response | Who am I supposed to call when something happens? What kind of police report do you need? Who provides the police with a location? |
| Limits | Before making payment, look through the written terms of agreement to see if there are any holes in service areas or limitations / exclusions in the contract. |
| Vehicle sale | Can service be transferred, cancelled or removed, and what does that cost? |
| Warranty | Has the dealer or manufacturer confirmed the installation will not affect warranty coverage? |
| Privacy | What location/account information is gathered, who it’s shared with, how long it’s retained, and how to ask for its deletion? Find out all you can before you part with your cash. |
The Privacy Commissioner also points out that location data about your vehicle may be considered more sensitive than other vehicle-health data.
Check the provider’s current privacy terms before paying for a vehicle tracking and theft recovery service. Some providers may collect more information than is required to handle a one-off vehicle theft. Ask before you buy.
Use TAG As Part Of A Layered Theft-Prevention Plan
Check with your insurer and recovery system provider(s) for their requirements and terms, including coverage, subscription, vehicle eligibility, privacy, service, warranty, theft recovery time, deterrence effectiveness, geographical limits, length of service contract, vehicle transfer fees, vehicle models and insurance savings. Some insurers offer savings, and some do not. Get their response(s) in writing before purchasing.
Use common-sense measures, including steering-wheel locks/pedal locks, and park in a well-lit/observable area or a locked garage if possible. Always lock your vehicle, close the windows, and keep keys away from windows and away from doors.
Ask your insurer if they recommend OBD-port protection or an immobilizer to prevent a specific type of theft, as insurers can tell you what products they approve.