How Vehicle Theft Rates Affect Your Car Insurance Rates | Insure.com

Imagine this: you wake up one morning and head to your car, only to find an empty spot where you parked it last night. You feel a surge of panic and disbelief as you realize that your car has been stolen. You call the police and your insurance company, hoping to get some help and compensation. But then you learn that your car insurance rates will go up because of the theft. How is that fair?

Vehicle theft is a serious problem that affects millions of drivers every year. According to the FBI, there were an estimated 721,885 motor vehicle thefts in the United States in 2019, resulting in a loss of $6.4 billion. That means that one vehicle was stolen every 43.8 seconds on average.

But vehicle theft is not just a loss of property and convenience. It can also have a significant impact on your car insurance rates. In this article, we will explain how vehicle theft affects car insurance premiums, what factors influence vehicle theft rates, and what can be done to prevent vehicle theft and lower car insurance costs.

How Vehicle Theft Affects Car Insurance Premiums

Car insurance is based on the concept of risk. Insurance companies use various factors to assess the likelihood of a driver filing a claim and the amount of money they would have to pay out. The higher the risk, the higher the premium.

Vehicle theft is one of the factors that increases the risk for both drivers and insurers. If your car is stolen, you may file a claim to get reimbursed for the value of your car or the cost of replacing it. Depending on your coverage and deductible, this can be a substantial amount of money for the insurance company.

But vehicle theft also has indirect costs for drivers. If your car is stolen, you may have to pay for repairs, replacements, rental fees, and other expenses out of your own pocket. You may also face increased premiums in the future, as insurance companies may consider you a higher risk driver.

How much vehicle theft can raise your car insurance rates depends on several factors, such as your location, your coverage, your deductible, and your vehicle type. According to a study by Insure.com, the average annual car insurance premium in the United States was $1,674 in 2020. However, this varied widely by state and region. For example, Michigan had the highest average premium at $2,878, while Maine had the lowest at $965.

The study also found that vehicle theft rates had a strong correlation with car insurance premiums. States and regions with higher vehicle theft rates tended to have higher car insurance premiums as well. For example, California had the highest vehicle theft rate in 2019 with 423.1 thefts per 100,000 people, and also had the third-highest average premium at $2,065. On the other hand, Vermont had the lowest vehicle theft rate with 58.3 thefts per 100,000 people, and also had the fifth-lowest average premium at $1,063.

What Factors Influence Vehicle Theft Rates

Vehicle theft rates are not random or uniform across the country. They are influenced by various factors that affect the likelihood and ease of stealing a car. Some of these factors are:

• Location: Vehicle theft rates vary by state, city, neighborhood, and even street. Generally speaking, urban areas have higher vehicle theft rates than rural areas, as they have more cars and more opportunities for thieves. However, some rural areas may also have high vehicle theft rates if they are close to major highways or borders that facilitate transportation and disposal of stolen cars.
• Population density: Vehicle theft rates tend to increase with population density, as more people means more cars and more potential targets for thieves. However, population density can also have a negative effect on vehicle theft rates if it leads to more traffic congestion and less parking availability, which can deter thieves from stealing cars.
• Crime rate: Vehicle theft rates are often correlated with other types of crime rates, such as burglary, robbery, and vandalism. Areas with high crime rates may have more criminals who are willing and able to steal cars or who use cars as tools or targets for other crimes.
• Vehicle type: Vehicle theft rates vary by vehicle type, make, model, year, color, and features. Some vehicles are more attractive to thieves than others because they are more valuable, more popular, more easy to sell or strip for parts, more easy to break into or start without keys, or more suitable for specific purposes or preferences.
• Security features: Vehicle theft rates are affected by the presence and quality of security features on vehicles and in parking areas. Security features can deter thieves from stealing cars or make it more difficult or risky for them to do so. Some examples of security features are alarms, locks, immobilizers, tracking devices, steering wheel locks, tire locks, VIN etching, and CCTV cameras.
• Parking habits: Vehicle theft rates are influenced by how and where drivers park their cars. Parking habits can increase or decrease the exposure and vulnerability of cars to thieves. Some examples of parking habits are parking in well-lit and secure areas, parking in garages or driveways instead of streets or lots, parking near other cars or people, locking doors and windows, and keeping valuables out of sight.

These factors are not independent of each other. They can interact and influence each other in complex and dynamic ways. For example, vehicle type can affect location and parking habits, as drivers may choose different places to park depending on the value and visibility of their cars. Likewise, location and parking habits can affect vehicle type, as drivers may choose different cars depending on the safety and availability of parking spaces.

What Can Be Done to Prevent Vehicle Theft and Lower Car Insurance Costs

Vehicle theft is not inevitable or unavoidable. There are many things that drivers can do to reduce the risk of vehicle theft and lower their car insurance costs. Here are some practical tips and advice on how to prevent vehicle theft:

• Install anti-theft devices on your car. Anti-theft devices can make your car less attractive or accessible to thieves or help you recover your car if it is stolen. Some examples of anti-theft devices are alarms, locks, immobilizers, tracking devices, steering wheel locks, tire locks, VIN etching, and LoJack.
• Park in well-lit and secure areas. Parking in dark and isolated areas can make your car more exposed and vulnerable to thieves. Parking in well-lit and secure areas can deter thieves from stealing your car or make it more difficult or risky for them to do so. Some examples of well-lit and secure areas are garages, driveways, lots with attendants or guards, lots with CCTV cameras or gates, and lots near other cars or people.
• Lock your doors and windows. Locking your doors and windows can prevent thieves from breaking into your car or starting it without keys. It can also prevent thieves from stealing valuables from inside your car. You should lock your doors and windows every time you leave your car, even if it is for a short time or in a safe area.
• Keep valuables out of sight. Keeping valuables out of sight can prevent thieves from targeting your car or breaking into it. Valuables can include anything that may attract thieves, such as money, electronics, jewelry, documents, bags, clothes, tools, or equipment. You should keep valuables out of sight by storing them in the trunk, glove box, console, or under the seat. You should also avoid leaving signs of valuables in your car, such as cords, chargers, holders, boxes, or wrappers.

Taking preventive measures can have many benefits for drivers. It can save them money on car insurance premiums by reducing their risk of vehicle theft and filing a claim. It can also save them money on other expenses related to vehicle theft, such as deductibles, repairs, replacements, rental fees, and increased premiums. It can also save them hassle and stress by avoiding the inconvenience and trauma of losing their car and dealing with the aftermath.

There are also some resources and programs that can help drivers prevent vehicle theft and recover stolen vehicles. Some examples are:

• VIN etching: VIN etching is a process of engraving the vehicle identification number (VIN) on the windows and other parts of the car. It can deter thieves from stealing the car or make it more difficult for them to sell or strip it for parts. It can also help law enforcement identify and recover the car if it is stolen.
• LoJack: LoJack is a tracking device that is installed in the car and activated by the police when the car is reported stolen. It can help law enforcement locate and recover the car within hours of the theft.
• OnStar: OnStar is a subscription-based service that provides various features for drivers, such as emergency assistance, roadside assistance, navigation, and diagnostics. It also provides a stolen vehicle assistance feature that can help drivers locate and recover their car if it is stolen.
• National Insurance Crime Bureau (NICB): NICB is a nonprofit organization that works with law enforcement, insurance companies, and other partners to prevent, detect, and prosecute insurance fraud and vehicle theft. It also provides various services for drivers, such as a free VIN check tool that can help them verify the history of a used car before buying it, a free VINCheck tool that can help them check if a car has been reported stolen or salvaged, and a free Theft Prevention Tips brochure that can help them protect their car from theft.

Conclusion

Vehicle theft rates have a significant impact on car insurance rates. Various factors influence vehicle theft rates, such as location, population density, crime rate, vehicle type, security features and parking habits. Preventive measures can help reduce vehicle theft risk and car insurance costs, such as installing anti-theft devices, parking in well-lit and secure areas, locking doors and windows, and keeping valuables out of sight. There are also some resources and programs that can help drivers prevent vehicle theft and recover stolen vehicles, such as VIN etching, LoJack, OnStar, and the National Insurance Crime Bureau (NICB).

Vehicle theft is a serious problem that affects millions of drivers every year. It can also have a significant impact on your car insurance rates. By understanding how vehicle theft affects car insurance premiums, what factors influence vehicle theft rates, and what can be done to prevent vehicle theft and lower car insurance costs, you can protect your car and your wallet from thieves. Don’t let vehicle theft ruin your day or your budget. Take action today and secure your car from theft.