Going, Going . . .GONE!

Because ours is such a deeply ingrained, “four-wheel culture”, we have become easy pickings for the auto thieves among us. Vehicle theft is increasingly becoming a major problem throughout North America.

The bad guys have devised dozens of methods for stealing vehicles. Some work alone using the simplest of tools. Others band together and rely on high tech gadgets that would impress the creators of “James Bond”. But, both types of criminal – the sophisticated and non-sophisticated – have achieved excellent success rates in snaring their prey, which translates into a significant economic loss for society.

Insurance companies are now realizing just how pervasive the auto theft problem has become. Vehicle theft now accounts for more than 12% of all property crime in Canada. That is a high percentage, costing Canadians close to $1 billion every year. Notably, insurers incur about $600 million in the replacement or repair of stolen vehicles each year, with a further $250 million for police, healthcare and court costs, and another $150 million for correctional services expenses.

COMMON SENSE

How many vehicles are stolen annually? More than 170,000 vehicles were reported stolen in Canada last year, of which approximately 32,000 vehicles were never recovered. Whether they were resold in other provinces, shipped across the border, exported overseas or stripped for parts, the fact remains that these vehicles just vanished – much to the dismay of insurers.

There are many things vehicle owners can do to prevent theft. The most obvious, and least costly, are what might be called the “common sense” strategies. These include:

Keeping the vehicle locked at all times, even while driving;

Never leaving the keys in the ignition;

When parked, always locking the doors and closing the windows;

Never hide keys under the front-seat or floor mat, sun visor or glove compartment;

Never leaving valuables exposed on the front or back-seats;

Never getting out from behind the wheel when the engine is running;

Park in well-lit areas where there are many people about;

Never giving the keys to parking lot attendants and other strangers; and

Never keeping the keys on a ring with a vehicle description, license number or other personal information.

Why do people overlook these simple strategies? Do they believe they will never be victimized? Do they feel that their environment – their driveway, office parking lot, underground parking garage, local mall, etc. – is of no interest to vehicle thieves? Whatever the answer, it is incumbent upon the insurance industry to inform its policyholders of the common sense, no-cost steps drivers can and should take to protect themselves from vehicle theft.

PROFESSIONAL PERSPECTIVE

The Insurance Bureau of Canada (IBC) and the National Insurance Crime Bureau (NICB) in the U.S. agree that “common-sense strategies” should be adopted by drivers at all times. However, both organizations advise drivers to go further by embracing such devices as audible alarms, steering column collars (a.k.a., clubs), steering wheel locks, brake pedal locks, wheel locks, and tire deflators – all of which make stealing a vehicle more difficult and time consuming.

The IBC and NICB also approve of “low tech strategies” designed to give even seasoned pros pause – for instance, theft-deterrent decals, identification markers in or on the vehicle, window etching and laminated glass. According to the IBC, the ultimate in protection against vehicle theft is a state-of-the-art immobilizing device that prevents a thief who has broken into a vehicle from starting the engine. And while it is true that smart keys, fuse cut-offs, kill switches, and starter, ignition and fuel disablers will stop many of the bad guys, such devices are not infallible. Serious professionals who steal vehicles for a living know what car immobilizer systems are about, and are equipped to deal with them. In addition, few people know that remote car starters, so popular in Canada, actually bypass the safety features of the immobilizer system, making it even easier for thieves.

LAYERED PROTECTION

The NICB goes one step further by advocating a 4-step approach against car theft; advising drivers to use an additional “layer” of protection in the form of a vehicle tracking device. Relying on today’s most advanced technology, these devices help locate and recover a vehicle quickly, before it can be stripped for parts or shipped to another province or country. Tracking devices fall into one of the following two categories: GPS systems and cellular systems.

Short for “global positioning satellite,” GPS systems require three or more satellites to receive a clear signal from the vehicle, and need an unobstructed path, with no skyscrapers in the way. Bad weather can negatively affect the signal too, and if the vehicle is underground or in a shipping container, GPS systems will not work at all. Consumers should also remember regarding GPS tracking systems is that many professional thieves are able to disturb and/or interfere with the signal. Moreover, the wiring is complex, the equipment is bulky and difficult to hide, and the antenna is readily visible, alerting thieves to what they are dealing with. In addition, the signal can only determine an approximate location, not pinpoint where a vehicle is exactly. And finally, suppliers of GPS systems do not have their own tracking teams in the field, instead, they rely on police forces to recover stolen vehicles. Faced with declining human resources, vehicle theft is not a top priority for police forces.

The state of the art in vehicle tracking technology is a system that relies on the cellular network to track the stolen vehicle. Cellular tracking is able to pinpoint a vehicle’s exact location, even if it is underground or in a shipping container. This technology is usually supported by inhouse tracking teams dedicated 24/7 to track stolen vehicles. And, the technology does not require bulky equipment to install, with the wiring simple and easy to hide.

FINAL FRONTIER

The bottom-line of today’s climate is that drivers need to know more, and ultimately do more, of the right things to protect their vehicle. Car theft is big business, and the thieves running the “chop shops” and auto theft rings are incredibly sophisticated professionals.

The insurance industry plays a pivotal role in helping consumers understand the severity of today’s auto theft problem and to learn what it takes to properly safeguard their vehicles. They are therefore key to openly promoting the idea of layered protection, as advocated by many experts in the field – the no-cost strategies like never parking and leaving the keys in the ignition, and supporting devices like alarms and collars, etc.

But, vehicle tracking technology is the last line of defense. This proactive approach to risk management equates in the long run to maximum protection and provides real peace of mind for the consumer. Ultimately, the technology will reduce the cost of climbing auto theft, and therefore the claims cost incurred by insurers.