The Federal Bureau of Investigation Uniform Crime Reports disclosed that in 2006, a vehicle was stolen every 26.4 seconds in the United States (based on the data for the 1,192,809 stolen vehicles reported). How much did that total in losses to the insurance companies and the vehicle owners? Estimates exceed $7.9 billion. That’s Billion with a “B”.
Besides the emotional feeling of violation, anger, frustration, the total inconvenience and time loss of filing reports with police and insurance agencies, arranging for a temporary rental and the likelihood of having to purchase another vehicle, there is sometimes the surprise that the insurance coverage was not appropriate for the value of the vehicle or the event. Now you are looking at a large, unplanned cash outlay.
First, take a look at your current vehicle insurance policy. Does it cover the cost of a rental car until your vehicle is either found or the insurance check is issued to purchase another vehicle? This coverage is included in the comprehensive section of your policy, but is not automatic. Often it is an option that usually costs a few dollars per month. The total annual cost of this coverage is about the same as a one or two day rental cost.
If you have dropped comprehensive coverage to save money you are likely not covered for theft. Many owners of older cars believe that they will not be target for theft as their older vehicles are not as desirable to thieves. Think again. In 2006, the top five model years stolen were 1995, 1991, 1989, 1997 and 2005 respectively, according to the National Crime Information Center. Many older vehicles are stolen for parts which are no longer available and are too difficult or expensive to obtain. Many go to “chop shops” and the parts are sent overseas to countries with large populations of older vehicles in service. Almost one-half of stolen vehicles were not recovered at all and only 12.6% of thefts were cleared by arrests in 2006. Those that are recovered usually have significant damage or are completely totaled. Weigh the replacement cost of a vehicle with both the deductible you have chosen and the annual cost of the comprehensive coverage.
New cars with limited production and several months’ waiting list for delivery are also high on the vehicle theft list for their limited availability.
So what can you do to reduce the chances of being a victim?
1) The obvious first step is roll up the windows, lock the doors, and don’t leave anything of value in plain view through the window. This means purses, cell phones, laptops, IPODs, mail, bank statements, tools, etc. This not only prevents the car theft, but unnecessary break-ins which result in other uninsured losses and the inconvenience of repairs and replacements. Sounds ridiculously simple, but surprisingly not a sound practice widely followed. A recent rash of vehicle break-ins in South Florida revealed that valuable personal and electronic items were taken from vehicles parked in driveways and residential streets, during evening hours, from unlocked cars! How much effort does it take to push the lock button vs the potential loss of your personal items, data, and even the entire vehicle? Only 79% of people surveyed said that they lock their vehicles(!) Oh – and don’t leave your car running while you dash up to the ATM.
2) Use a visible theft deterrent such as a steering wheel locking device or alarm (usually flashing red light in view). While these types of devices are not fool proof, they will certainly discourage the thief looking for a “fast” target. Steering wheel locks also deter Airbag theft, a prolific crime which costs the owner about $1,000 to replace the airbag. If you are driving a car on the “hot” list for stolen cars, and you are targeted by a professional, these devices will naturally be less effective. But by consistently using them, you have already decreased your likelihood of becoming a victim.
3) Anti-theft devices are complicated mainly due to the complexity of today’s computerized vehicles. Don’t look to save pennies and ignore the big costs of car theft. Go to a professional for installation, and look for certified technicians (Mobile Electronics Certification Program). Make sure that you will receive a written warranty and ask for training on how your system works to use it effectively. Many after-market systems are usually more sophisticated than the manufacturer-installed system, making them less vulnerable. Ask your insurance agent about discounts for having various anti-theft and tracking/recovery devices installed. That discount may offset part of the cost of the system.
4) Park in well-lit areas, and give preference to shopping centers and parking garages with security cameras installed on light poles and building exteriors. While it may seem more convenient to you to park closer to the exit of a lot or garage, these are higher-targeted theft areas for the same reason you parked there – ease of exiting quickly. Is being first into traffic at rush hour more important than knowing your vehicle will still be there at the end of the day?
5) Don’t leave your registration and insurance information in the glove-box – keep it in your wallet (make photocopies for other drivers in your house). It is essential to notify police immediately with as much information as possible, including license plate number and Vehicle Identification Number (VIN). This extra step helps you to assist in your vehicle recovery.
6) Roadside assistance – if your vehicle is broken into, how much will it cost you to get a tow truck to a repair shop? Again, check your insurance policy and shop the other vendors’ services available for roadside assistance, including AAA.
General safety tips for walking to your vehicle:
- Put away the cell phone/IPOD and pay attention to your surroundings – is anyone loitering near your car? Is the same car “cruising” around the lot? If so, walk back to the store or office fast. Ask security to escort you.
- Have your key and alarm button in your hand – don’t fumble around in your purse or pockets searching while you are standing at the car door.
- Moms (and Dads, too) – children are distracting. Hold their hand in the parking lot but still be aware of your surroundings. Keep lookout while strapping the child in the car seat or loading packages in the trunk.
- Don’t get out of your car and THEN put your purse or laptop in the trunk (a typical move at the gym) – put it there before you leave the house or office. Thieves just saw that action and you created a reason for the theft.
- Give up the keys or purse if confronted – it is NOT worth your life.
