Car Theft Payouts At Seven Year High

Mon 27th May 2019

The Association of British Insurers has revealed that car insurance payouts for theft are up by almost a quarter in the space of a year.

The ABI’s figures show that claims between January and March 2019 are 22 per cent higher than the same period in 2018, as insurers are paying out at a rate of £1.2m a day, the highest rate since 2012.

The rise in keyless car theft is behind the spike in figures according to the ABI, with newer models being targeted by criminals. Research by Thatcham Research has also found that newer models launched in 2019 have a poor security rating. They keyless technology is making it easier for cars to be stolen, with some models accessed in less than 20 seconds via a relay box.

“The continued growth in car crime must be reversed,” said Laurenz Gerger, policy adviser for motor insurance at the ABI. “Car security has come on leaps and bounds but needs to keep pace with the ingenuity of car criminals. The rising number of theft claims being paid by insurers in part reflects the vulnerability of some cars to keyless relay theft. Action by motor manufacturers to tackle this high-tech vulnerability, allied with owners taking some simple, inexpensive precautions will help put the brakes on this unwelcome trend.”

The ABI’s figures appear to be backed up by the Government’s own studies, with the Home Office saying that car theft has risen by 50 per cent in the last five years.