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Why do auto insurance rates seem just to keep going up? If you’ve started to get a queasy feeling in the pit of your stomach every time you open a renewal notice from your insurer, you’re in good company. Busy car thieves are part of the reason your new quote can seem like highway robbery.
Law enforcement agencies and insurance companies nationwide are struggling with record and near-record levels of auto theft, and Texas is one of the states with the highest percentage of theft increase. Even if you are a safe driver and don’t drive a car that’s expensive to fix or replace, it’s probably hitting your wallet harder than it used to.
Nobody wants to spend more money on auto insurance than necessary. Spending it on a vehicle only to have it stolen is even worse. Let’s look at how to protect yourself from rising insurance rates and car thieves.
Rising vehicle theft and your auto insurance rate
Why does the fact more bad guys are engaging in sneaky car-snatching shenanigans affect your rates even if you never report a stolen vehicle? Here’s what insurance agencies look at when they give you a quote:
- How you drive – If you have a clean driving record, you’ll pay less than someone with a history of speeding tickets and fender benders.
- How much you drive – People who drive more are more likely to get in an accident.
- Your age and gender – If you’re very young, you’re inexperienced. On average, insurance providers also tend to view male drivers as riskier than female drivers.
- Where you drive – If you live or work in high-risk areas, your vehicle might be at higher risk of being hit, vandalized, or stolen.
- What you drive – A heavy-duty truck can do more damage than a lightweight sedan. A luxury vehicle costs more to replace than a budget model. Insurance companies charge based on what they must shell out if something goes wrong.
- Your coverage preferences – Drivers typically have choices regarding limits and deductibles, which affect the cost of coverage.
Minimizing premium pain
A Council on Criminal Justice report published halfway through 2023 points out U.S. crime rates are down or showed little change…except for motor vehicle theft. Violent crimes, drug offenses, and burglaries have all stabilized or decreased, but motor vehicle thefts went up 33.5% compared to the same time frame last year.
If the upward theft rates continue, so will rising insurance premiums. As insurers see their profit margins dwindle with every theft, they start getting edgy about protecting the money left.
You can reassure your anxious agent by protecting your asset and their potential liability. To keep renewal costs down, ask your representative if the company offers discounts for the following:
- Anti-theft devices: Insurers are all about extra security. Installing alarms, steering wheel locks, or tracking systems might earn you a discount.
- Safe vehicle features: If your car has top-notch safety features like an immobilizer system, built-in transponders that prevent theft, a passive disabling device, or other theft-prevention equipment, insurers might tip their hats to your choice and lower your rates.
- Vin etching: Some insurers provide discounts for cars with the vehicle identification number (VIN) etched on windows and windshields since that makes it harder to sell once stolen.
- Low mileage: Insurers might lower your rates if you're not logging a ton of miles on the road. Your car is less likely to be stolen if it spends most of its time parked in your garage.
Protecting your vehicle from theft – 15 tips
Are thieves getting smarter? Probably not, but they do have access to more information. Social media has made it easy to distribute information on how to steal different makes and models and, in some cases, glamorize the joy ride.
Human nature has also made it easier on the bad guys. Since the mid-1990s, vehicles have increasingly switched to keyless entry and ignition. We don’t have to constantly dig our keys out of pockets and purses, so some drivers don’t think twice about leaving them in cupholders and consoles during quick stops. When they run in to grab their takeout order or take a bathroom break, their vehicle becomes an irresistible temptation to car thieves who only have to hop in and drive away.
Vehicle theft can happen to anyone. Protect yourself by taking the following steps:
- Don’t leave your key fob in your vehicle. Don’t store the spare or valet key in your glove box either.
- Install an anti-theft device like a steering wheel lock, alarm system, or GPS tracker.
- Park in well-lit areas, secure garages, or monitored parking lots.
- Keep valuable items out of sight to deter potential thieves.
- Store your keys in a safe, hidden place away from your home’s front door.
- Consider getting your VIN etched on your car windows to make it less attractive to thieves.
- Use wheel locks to prevent your tires from being easily stolen.
- Upgrade your home garage security with extra locks, lights, or security cameras.
- Invest in a kill switch that prevents your car from starting without input.
- Lock your car doors and windows every time you leave your vehicle.
- Avoid leaving spare keys inside your car or in easily accessible places.
- Be cautious about sharing your vehicle information or location on social media.
- Don't leave your car running and unattended, even for a short time.
- Consider getting tinted windows to make it harder for thieves to see inside.
- Be mindful of your surroundings and trust your instincts when parking in unfamiliar areas.
By following these practical steps, you'll give potential thieves a run for their money and ensure your vehicle stays right where it belongs – with you!
More consumer resources
What are other ways to manage and save your money? Are there scams to avoid when you shop for the best insurance rates? What if you have a dispute regarding your vehicle warranty or if you end up buying a lemon? BBB has resources to help with all of the above. Check out our Consumer Headquarters. Visit BBB's auto HQ for more auto resources and tips.