Vehicle theft increased dramatically in recent years which led to more insurance claims. To offset increased payouts, insurers have had to adjust premiums which resulted in higher rates. So, yes, auto theft does affect insurance rates.
But what if you live in an area that doesn’t see many vehicle thefts? Or what if you can’t afford to pay high premiums? We’ve covered everything you need to know about how to navigate auto insurance amid increased auto thefts. So keep reading!
(If you’re worried about how auto theft might be impacting your insurance, you can always call Insure on the Spot at 773-202-5060 for personalized guidance and a free quote.)
Why Does Auto Theft Influence Car Insurance Premiums?
When cars are stolen, insurers often have to pay out claims under comprehensive coverage (the part of an auto policy that covers theft). A rise in theft incidents means a rise in claim payouts, and insurance companies typically respond by raising premiums overall to balance these losses.
This effect can be better understood with statistics. The FBI reported that motor vehicle thefts jumped by 10.9% from 2021 to 2022, with nearly one million vehicles stolen in 2022. This surge, part of a multi-year increase in auto thefts, has been identified as one factor behind the sharp rise in auto insurance rates nationwide. More thefts lead to more claims, and insurers spread those costs across policyholders. In one dramatic example, soaring car theft rates in Colorado over the past decade added about $277 million in insurance costs, averaging $239 extra per household in 2022 alone.
Insurers also consider trends and technology when pricing for theft risk. Sophisticated theft techniques (like keyless entry hacks or relay attacks on key fobs) have made certain vehicles easier targets. If criminals find new ways to steal cars, and theft losses mount, insurers will adjust their rates upward to account for the heightened risk.
Do High-Theft Areas Have Higher Car Insurance Rates?
Insurers track local crime statistics, including vehicle theft rates, by ZIP code. If you live in a region with frequent car thefts, the risk of your vehicle being stolen (and the insurer having to pay out) is greater, so you’ll likely be charged more for coverage.
Urban centers and theft “hotspots” usually bear the brunt of these higher premiums. For instance, Nevada is among the more expensive states for car insurance partly due to its high vehicle theft rate, especially around Las Vegas. Similarly, Texas drivers face costly insurance in cities like Houston and Dallas, where vehicle thefts (and related claims) are high because insurers acknowledge that finding cheap coverage in such areas is challenging. On the other hand, in states or neighborhoods with relatively low car theft rates, insurance prices for comprehensive coverage tend to be lower. So, the safer your area is from auto theft, the less you might pay for that portion of your insurance.
It’s important to note that even if you personally have never had a car stolen, living in a high-theft area can still raise your rates. Insurance is pooled risk, which is the overall frequency of theft in your city or ZIP code affects what everyone is charged. Large cities with the highest theft rates (for example, the District of Columbia, which had the nation’s highest vehicle theft rate in 2023) often have insurers setting higher base premiums. The increased likelihood of theft claims in those places forces premiums upward across the board. This is why two drivers with identical cars and driving records may pay different rates if one lives in a city neighborhood with lots of car thefts while the other lives in a low-crime rural area.
Will My Insurance Go Up If My Car Is Stolen (After Filing a Theft Claim)?
While it may seem unfair since theft isn’t the owner’s fault, the fact is that any claim payout can mark you as a higher-risk customer in the insurer’s eyes. Insurance companies review your claims history, and a theft claim indicates you cost them money, which can result in a premium increase.
That said, the premium hike from a theft claim might not be as steep as an at-fault accident claim, but you should still prepare for a possible uptick. Some anecdotal reports have shown significant increases. For example, one driver saw a 33% rate increase after a single theft claim (though individual experiences vary). Generally, if your car is stolen and you make an insurance claim to be compensated, you can expect your insurer to reassess your risk profile. In some cases (especially if you’ve had multiple theft or comprehensive claims in a short period), an insurer might even consider non-renewing your policy or excluding comprehensive coverage in the future. While that’s an extreme scenario, the safest assumption is that a theft claim will have at least a mild impact on your premiums.
Edge case: What if your car is stolen but you don’t have comprehensive coverage (only liability)? In that case, you unfortunately can’t file a theft claim at all. Your insurance won’t pay for the loss. Since no claim is filed, your insurer wouldn’t raise your rate due to the theft incident itself. However, you’d be on the hook for the entire loss of the vehicle, which is a strong reason to carry comprehensive coverage if theft is a concern.
What Insurance Coverage Will Pay for Car Theft?
To have protection against car theft, you need to carry comprehensive auto insurance coverage. It (often part of a “full coverage” policy) pays for damage or loss to your vehicle caused by events other than a collision, including theft, vandalism, fire, and weather damage. If your car is stolen, comprehensive insurance will cover the value of the vehicle (up to its actual cash value, minus your deductible) if it’s not recovered, or cover repair costs if it is recovered with damage. By contrast, liability-only insurance covers you only for damage or injuries you cause to others, not for theft or damage to your own vehicle.
Because comprehensive coverage is optional (except when required by a car loan or lease), drivers who skip it to save money on premiums are essentially not insured for theft losses. In a high-theft area, that’s a big risk to take. It’s also worth noting that the cost of comprehensive coverage itself is influenced by theft risk. If you do add comprehensive, your insurer will consider how likely theft is for your car and location when pricing that part of your policy. Drivers in theft-prone regions or owners of commonly stolen models will pay more for comp coverage than drivers in low-risk scenarios. In some cities with extreme theft waves, comprehensive coverage on certain cars can become very expensive or even hard to obtain (as we’ll discuss below). But generally, if you want your insurance to pay for auto theft, comprehensive coverage is the way to go, and its cost will reflect the level of theft risk involved.
Which Cars Are Stolen Most Often (and Will Owning One Raise My Rates)?
Insurance companies keep detailed data on which vehicles are stolen most often. If statistics show that your car’s make and model is popular among car thieves, the insurer knows there’s a greater chance they might have to pay out a theft claim for you. As a result, they may charge a higher premium to offset that risk.
For example, recent theft trends have shifted toward certain Hyundai and Kia models. A well-publicized security flaw (lack of engine immobilizers in many 2011-2021 Hyundai and Kia cars) made them extremely easy to steal with simple tools. Consequently, Hyundai and Kia sedans dominated the list of most-stolen vehicles in 2023, overtaking the usual favorites like pickup trucks. According to the National Insurance Crime Bureau, the top three most frequently stolen vehicle models in 2023 were the Hyundai Elantra, Hyundai Sonata, and Kia Optima, each with tens of thousands of thefts nationwide. In fact, here are the top five stolen vehicles in the U.S. for 2023 and the number of thefts reported for each:
- Hyundai Elantra – 48,445 thefts
- Hyundai Sonata – 42,813 thefts
- Kia Optima – 30,204 thefts
- Chevrolet Silverado (1500 series pickup) – 23,721 thefts
- Kia Soul – 21,001 thefts
If you drive one of these high-theft models (or others known to be theft-prone, like older Honda Civics or Accords historically), you’ll likely see a higher rate for comprehensive coverage compared to an otherwise similar vehicle that isn’t stolen as often. In extreme cases, some insurance companies might even limit coverage availability for certain models. During the peak of the Kia/Hyundai theft crime spree, several major insurers (including Allstate, Progressive, and State Farm) stopped issuing new policies for those vulnerable models in some states because the theft losses were so frequent.
How Can I Lower My Car Insurance Costs Amid High Auto Theft Rates?
If you’re concerned about rising premiums due to auto theft (whether because your area’s theft rate jumped or you drive a commonly stolen car), there are steps you can take to mitigate the costs:
Install Anti-Theft Devices
Many insurers offer discounts for approved anti-theft devices like alarms, ignition kill switches, steering wheel locks, or GPS trackers. In fact, some companies provide substantial savings on the comprehensive portion of your premium. For example, GEICO advertises up to a 23% discount for cars with built-in anti-theft systems. Check with your insurer which devices qualify; something as simple as a factory alarm or VIN etching could shave a few percent off your rate.
Park Securely
Parking in a locked garage or other secure location can reduce theft risk, potentially leading to lower rates (or at least preventing surcharges). Even if you don’t have a garage, try to park in well-lit, surveilled areas. Some insurers will consider giving a discount or lower rate class if your primary parking situation is relatively safe from theft.
Choose Your Vehicle Wisely
You can research theft statistics (the NICB publishes annual “Hot Wheels” reports of top stolen cars) and opt for a model with a better record. Vehicles equipped with modern anti-theft technology (like engine immobilizers, GPS recovery systems, etc.) are less attractive to thieves and may come with lower insurance risk. In contrast, if you own an older model known to be frequently stolen, consider aftermarket upgrades like a steering lock or alarm to lower its target appeal.
Raise Your Comprehensive Deductible
Choosing a higher deductible on comprehensive coverage can lower your premium. If theft is driving your comp premiums up, accepting a larger out-of-pocket cost in the rare event of a theft could save you money each month. For example, moving from a $250 to $500 or $1000 deductible often cuts the comprehensive portion of your rate.
Shop Around and Ask About Discounts
In high-crime areas, different insurers may assess theft risk differently. So it pays to compare quotes from multiple companies. Also inquire about any specific discounts. Aside from anti-theft devices, there are often discounts for bundling home and auto, safe driving, low annual mileage, and more that can offset a rate increase due to external factors like theft. An independent agent or broker (like Insure on the Spot) can help identify carriers that are more forgiving on theft-related rating or that provide extra credits to counterbalance.
Frequently Asked Questions
Does liability car insurance cover theft?
No, a liability-only auto insurance policy will not cover theft of your vehicle. Liability insurance only pays for damage or injuries you cause to other people. Theft of your own car is covered under comprehensive coverage, which is optional insurance that you must carry to be protected from vehicle theft. If your car gets stolen and you only have liability coverage, your insurer won’t reimburse you for the loss.
Is theft covered under comprehensive or collision coverage?
Car theft is covered under comprehensive coverage, not collision. Comprehensive insurance pays for losses from non-collision events like theft, vandalism, fire, or natural disasters. Collision coverage, on the other hand, only covers damage from accidents (crashes). So if you’re concerned about theft, make sure you have comprehensive coverage on your policy; collision alone won’t help in a theft scenario.
Will my premium increase if I file an auto theft claim?
In most cases, yes, your insurance premium is likely to go up after a theft claim. Insurance companies often raise rates after any claim payout, because they now consider you a higher risk. Even though a stolen car isn’t your fault, the claim still costs the insurer money. Many drivers see their next renewal rate increase due to a theft claim, perhaps not as drastically as after an at-fault accident, but it can be a noticeable bump. The exact increase depends on your insurer’s policies and your overall claim history.
Are car insurance rates higher in places with more car thefts?
Absolutely. Insurers factor in the local crime rate when setting premiums, so areas with higher vehicle theft rates tend to have more expensive car insurance on average. For example, dense urban areas or regions known as theft hotbeds will see higher comprehensive coverage costs than areas with minimal car theft. This is because the likelihood of claims (and payouts) is higher where more cars are being stolen. Your ZIP code’s theft statistics directly affect what you pay.
What are the most stolen car models recently?
As of the latest data, Hyundai and Kia models have topped the list of most stolen cars in the U.S. due to a widely known security weakness. In 2023, the Hyundai Elantra and Sonata and the Kia Optima were the top three most frequently stolen vehicles nationwide. They even surpassed popular targets like full-size pickup trucks that had dominated theft rankings in prior years. Other consistently stolen models include the Honda Accord and Honda Civic, among others. If you drive one of these commonly stolen cars, be aware that your insurance may cost more and it’s wise to take extra theft-prevention measures.
Do anti-theft devices really lower insurance rates?
Yes, installing anti-theft devices can help lower your insurance premium, especially the portion for comprehensive coverage. Many insurers offer an anti-theft discount if your car has eligible security features. These discounts can range from a few percent up to around 15-20% off that part of your premium, depending on the device and insurer. For instance, GEICO offers up to a 23% discount on the comprehensive premium for vehicles equipped with certain anti-theft systems. Even simple measures (factory alarm, steering wheel lock, VIN etching) might earn a small discount. More importantly, a visible anti-theft device can deter thieves.