Insurance Companies Now Require Aftermarket Immobilizers

For years, vehicle security was optional. You could add aftermarket systems, or rely on factory equipment. Insurance companies priced policies accordingly, factoring in vehicle value, location, and theft statistics.

That model is breaking down. In the UK, where Range Rover and BMW theft reached crisis levels, insurers have begun requiring aftermarket immobilizers as a condition of coverage for high-risk vehicles.

What's Happening in the UK

Several major UK insurers now require Thatcham Category S5 approved immobilizers (IGLA is one) for certain vehicles:

Range Rover (all models)
Range Rover Sport
BMW M3, M4, M5
Mercedes AMG models
High-value keyless vehicles in certain postcodes

Without approved security, these vehicles are either uninsurable or priced prohibitively. Some owners report premium increases of £3,000-£5,000 annually without an immobilizer—far more than the cost of installing one.

The Economics Make Sense

From an insurer's perspective, this is straightforward risk management. A Range Rover without an immobilizer has a significant probability of theft. With an immobilizer, that probability drops dramatically.

The £1,000-£1,500 cost of installation is far less than the £80,000+ payout for a stolen vehicle. Requiring the device transfers some security responsibility to the owner while reducing claim frequency.

Will This Come to the US?

US insurers haven't made aftermarket immobilizers mandatory—yet. But the same pressures exist:

Hellcat/Charger theft claims are surging
Kia/Hyundai theft (different method, same problem) has cost insurers billions
Recovery rates for keyless theft are low

Some US insurers already offer discounts for aftermarket security devices, though this is inconsistent and often requires documentation. The leap from "discount for having it" to "required for coverage" isn't large.

What To Do Now

If you own a high-theft vehicle, consider installing an immobilizer before it becomes mandatory. You'll be ahead of requirements, potentially qualify for discounts, and—most importantly—actually protected.

Check installer availability

The Broader Trend

Insurance requirements are a lagging indicator. They reflect what's already happening in the theft landscape. By the time insurers mandate solutions, the problem has been severe for years.

Vehicle owners who proactively address security—rather than waiting for external requirements—are better protected throughout.