Auto thefts increased in frequency rather dramatically during the COVID-19 pandemic, jumping by almost 20% in 2020 and 2021. The National Insurance Crime Bureau (or NICB) has released statistics showing that these numbers are beginning to drop once more, but in certain areas of the country, they’re still rather inflated, causing serious ramifications to policyholder’s car insurance.
The current rate of auto theft in the U.S. amounts to two stolen every minute. While it has dropped in some states, such as Kansas, South Carolina, Arkansas, Oklahoma, Indiana, etc., rates for theft have increased in California, Texas, Washington, Florida, and Colorado. Here’s what’s going on.
Which states are considered designed hot spots for theft?
Regardless of where you live, taking precautionary measures to protect your car (such as not leaving it running, concealing your keys and not leaving them in your car, parking in well-lit areas, etc) is crucial. However, some areas have been identified as being more at risk than others. The list below (from Forbes) is comprised of different states in descending order with their theft rates per 100,000 residents:
- Colorado (731)
- District of Columbia (700)
- Washington (603)
- Oregon (541)
- New Mexico (540)
- California (520)
- Missouri (483)
- Nevada (481)
- Texas (350)
- Tennessee (337)
- Minnesota (312)
- Illinois (308)
- Oklahoma (299)
- Louisiana (297)
- Arizona (295)
Which states are considered designed hot spots for theft?
Numerous factors contribute to why certain states may put you at higher risk of auto theft than others. For one, population density. Several of the states as designated on this list have some of the highest populations in the U.S. (California, Texas, Ilinois, etc.) and densely populated cities, which provide more opportunities for thieves to operate quickly and anonymously.
Another reason why these states may be considered hot spots for theft is economic conditions. Economic disparities can influence crime rates, including car theft. States with higher unemployment rates and economic instability often see a rise in criminal activity as individuals may turn to theft out of financial desperation.
Border proximity, law enforcement resources (or lack thereof), socio-political factor, and the availability of high-value vehicles all tend to factor into why certain states may see more auto theft than others. Usually, a combination of these factors may contribute to a state landing itself on the “hot spot” list. However, no state’s citizens are immune to auto theft.
Which cars are most at risk for auto theft?
It varies by state, city, and insurance company, however generally older “high-volume” (aka number of insureds on the road) are taken more often than your luxury/new vehicles since they’re most often taken to be sold individually as parts. They’re usually driven away or towed where they can be stripped down into components and then sold off to repair shops and over the Internet. Sometimes even overseas!
Electric cars tend not to be the target of theft for one reason: a lacking of charging infrastructure in overseas countries. There isn’t much demand for their parts as there aren’t many electric-powered vehicles in the countries these parts are being sold to, so as a result they can be less at-risk for theft. Still, they’re not entirely immune, and vehicles can still be stolen for any number of purposes!
Why your rates could be impacted if you live in theft hot spots
Living in a high-risk area for car theft can significantly impact your auto insurance rates, even if you haven’t personally experienced theft. Insurance companies base their premiums on the likelihood of claims being filed, and residing in a theft hot spot increases this risk. Your rates could be higher for any of the following reasons:
- You’re now an increased risk for insurers. Living in a neighborhood with a high incidence of car theft puts you at an increased risk of your insurer having to pay out for stolen vehicles. This increased risk is reflected in higher premiums to offset potential future losses.
- Historical data and trends show a higher incidence of future losses. Areas with a history of high car theft rates are considered more dangerous, and this statistical analysis influences the calculation of your insurance rates. Even if your car has never been stolen, the past data from your area plays a significant role in determining your premiums.
- The cost of claims is higher in your area. Insurers factor in not just the value of the stolen vehicle but also administrative costs, investigations, and potential legal fees. Higher claims frequency in theft hot spots drives up these costs, leading insurers to charge more to cover these expenses.
- You may be asked to invest in security measures. Insurers might require or recommend additional security measures for your vehicle, such as alarms, GPS tracking, or immobilizers. These added precautions can reduce the risk but also increase the overall cost of insuring your car, as its total replacement value has now increased. However, some insurers will discount your insurance for these devices, which can combat the overall increase.
In essence, living in these “hot spots” can result in higher insurance premiums – even if you yourself have not made an insurance claim! Having a better grasp on these factors may permit you to navigate your insurance options better so you can find ways to lower your rates.
Have additional questions? Our agents at AHI Group will be more than happy to help out. Request a quote or, better yet, give us a call and ask us directly.
