How Does Car Theft Exactly Affect Your Insurance Premiums?
Most Americans are becoming aware of the increasing problem of auto theft. Every 27 seconds, a vehicle is stolen. The average loss per theft is just over USD 9,166, but collectively, it adds to around USD 7.4 billion annually. Car insurance companies are shelling out millions to settle car theft claims. However, you may wonder how auto theft rates affect insurance premiums.
Auto theft can shoot up the premium so much that there are many instances where individuals living in specific locations cannot purchase a regular auto insurance policy because of the risk associated with vehicle theft. Whether you just bought a car or are planning to buy car insurance, learn how your location and auto theft rates impact the premium you will be paying to the company.
Do High Car Theft Rates Increase Insurance Rates?
First, you must understand that every insurance company bases its calculations on risk. The higher the risk of theft, the higher the insurance premium the customer will pay. Thus, if you live in an area where auto theft rates are high and quite common, then be ready to shell out more than the usual amount on your car insurance premium.
The top cities where the chances of your car getting stolen are the highest are Albuquerque, Anchorage, Pueblo, Redding, and St. Joseph.
Does Car Insurance Cover Theft?
It ultimately boils down to the coverage you have. A car insurance company will only cover your stolen car provided you have bought comprehensive coverage. You could not file a claim if you opted out of collision and comprehensive coverage to save a few dollars while purchasing car insurance.
Another essential thing to know is that the car insurance company covers the actual cash value of your car, not the total replacement value. If your vehicle is recovered later and you discover it’s been damaged, your insurance company will also cover it.
What’s the Best Car Theft Protection?
In the last decade, car manufacturing companies have installed an advanced theft system in cars. Due to the access to the internet, auto thieves have also become more advanced and use a program that allows vehicles to accept a substitute key. This raises a pertinent question: What to do to defend our car?
- Wrap your keys in foil when you are not using them
- Do not park your car running in the driveway to warm up during the winter months.
- Add an anti-theft device to your car.
Cover Your Car with Little & Sons Insurance Services
If you live in an area where car theft rates are high, or you own a car that mostly gets stolen, be ready to spend more money on your car insurance premium. Nevertheless, you could buy the right insurance policy.
Contact us today if you want to drive your car with peace of mind. At Little & Sons Insurance Services, we will create customized comprehensive auto insurance to cover your expense if your car gets stolen.