UK Keyless Car Theft Insurance

As an FCA-authorised expert broker that has arranged over 800,000 policies, WeCovr provides this essential guide to the complex world of UK motor insurance in the face of rising keyless car theft. Our mission is to demystify the market and help you secure the best possible protection for your vehicle.

The Silent Threat: How Rising Keyless Car Theft is Driving Up UK Motor Insurance Premiums and What You Must Do to Protect Your Vehicle and Your Finances

The convenience of keyless entry has become a standard feature on most new vehicles in the UK. Yet, this modern luxury has a dark side: it has opened the door to a sophisticated and rampant form of crime known as 'relay theft'. Organised criminal gangs are exploiting this technology at an alarming rate, leading to a surge in vehicle thefts that is having a profound impact on every driver's motor insurance premium.

This guide will explore the mechanics of keyless car theft, its direct influence on insurance costs, the legal obligations of UK drivers, and, most importantly, the practical steps you can take to safeguard your vehicle and mitigate the financial fallout.

The Scale of the Keyless Theft Epidemic in the UK

The numbers paint a stark picture. According to the latest data from the Office for National Statistics (ONS), vehicle theft has seen a significant year-on-year increase, with police-recorded crime data showing tens of thousands of vehicles stolen annually. The Association of British Insurers (ABI) reports that a car is stolen every few minutes in the UK, with payouts for theft claims reaching record highs.

In 2023, the ABI recorded its highest-ever payout for theft claims, totalling £669 million, a substantial increase on the previous year. This surge is overwhelmingly attributed to the rise in keyless theft.

What is Keyless Car Theft (Relay Attack)?

A relay attack is a shockingly simple and silent method of stealing a modern car. It requires no forced entry, no smashed windows, and no loud alarms. Here’s how it works:

1. The Team: Criminals typically work in pairs.
2. The Relay Box: One criminal stands near your house holding a 'relay box' or 'amplifier'. This device scans for the signal from your car key, which may be on a hallway table, in a jacket pocket, or on a kitchen counter.
3. Signal Amplification: The box captures the key's signal, even from a distance, and amplifies it.
4. The Transmitter: The amplified signal is transmitted to a second device, a 'transmitter', held by the accomplice standing next to your car.
5. The Deception: The transmitter tricks your car's security system into believing the key is present. The doors unlock, the ignition is enabled, and the thieves can simply drive away.

The entire process can take less than 60 seconds. The car is then often driven to a 'chop shop' to be dismantled for parts or given a new identity and sold on, sometimes overseas.

Which Vehicles are Most at Risk?

While any car with a keyless entry system is potentially vulnerable, organised gangs tend to target high-value and popular models where demand for parts is strong. Recent data from the DVLA and police forces consistently shows that models from brands like Range Rover, Land Rover, Ford, Mercedes-Benz, and BMW are among the most stolen vehicles in the UK.

However, it's not just premium cars. Mass-market models like the Ford Fiesta and Ford Focus remain popular targets due to the sheer volume of them on the road and the subsequent high demand for spare parts.

How Keyless Theft Directly Inflates Your Motor Insurance Premium

The connection between rising vehicle thefts and the cost of your motor policy is direct and unavoidable. Insurers base their premiums on risk, calculated using vast amounts of data. When the risk of a specific event, like theft, increases, the cost of insuring against it goes up for everyone.

Here’s a breakdown of how the keyless theft epidemic hits your wallet:

• Increased Claim Payouts: As noted by the ABI, insurers are paying out hundreds of millions of pounds more in theft claims. To remain solvent and able to pay future claims, they must replenish these funds by increasing the premiums they charge all customers.
• Postcode Rating: Insurers analyse claim data by postcode. If you live in an area with a high rate of vehicle theft, you will be considered higher risk, and your premium will be higher, regardless of your personal driving history.
• Vehicle-Specific Risk: Insurers rate every make and model of car based on its theft risk, repair costs, and performance data. If your vehicle is one of the models frequently targeted by thieves, its 'theft-risk rating' will be high, leading to a significantly more expensive premium. In some extreme cases, insurers may decline to offer cover at all for certain high-risk models in high-risk areas.
• Fraud Costs: The organised nature of keyless theft is also linked to wider insurance fraud, which adds another layer of cost that is ultimately passed on to honest policyholders.

Essentially, every car stolen via a relay attack contributes to a larger pool of losses that the entire UK driving population must cover through their insurance premiums.

Understanding Your Motor Insurance Policy: A Legal Requirement

In the United Kingdom, it is a legal requirement under the Road Traffic Act 1988 to have at least third-party motor insurance for any vehicle that is used or kept on public roads. Driving without valid insurance is a serious offence that can lead to unlimited fines, penalty points, and even disqualification from driving.

Understanding the different levels of cover is crucial, especially when considering the risk of theft.

The Main Levels of UK Motor Insurance Cover

• Third-Party Only (TPO): This is the minimum level of cover required by law. It covers liability for injury to others (including your passengers) and damage to third-party property. It does not cover any damage to your own vehicle or its loss through fire or theft.
• Third-Party, Fire and Theft (TPFT): This includes all the cover of TPO, but adds protection for your own vehicle if it is stolen or damaged by fire. This is the minimum level of cover you should consider if you are concerned about theft.
• Comprehensive: This is the highest level of cover. It includes everything from TPFT but also covers damage to your own vehicle in an accident, even if the accident was your fault. Often, Comprehensive policies can be cheaper than TPFT, as they tend to be bought by more risk-averse drivers.

Business and Fleet Insurance Obligations

The legal requirement for motor insurance extends to all vehicles used for business purposes.

• Business Car Insurance: If you use your personal car for work (beyond commuting to a single place of work), you need to have the correct class of use on your policy.
• Van Insurance: Whether you're a sole trader or a larger business, your commercial vans must be insured.
• Fleet Insurance: Businesses operating multiple vehicles (typically three or more) can benefit from a fleet insurance policy. This simplifies administration and can be more cost-effective. A fleet policy still needs to provide at least third-party cover for all vehicles.

WeCovr specialises in helping businesses of all sizes, from sole traders to large corporations, find the most suitable and cost-effective motor insurance UK solutions, ensuring full legal compliance and robust protection.

Making a Claim for a Stolen Vehicle: What You Need to Know

Discovering your car has been stolen is a distressing experience. Acting quickly and methodically is key to a successful insurance claim.

Step-by-Step Guide:

1. Report to the Police Immediately: Your first call should be to the police. You will need to provide your vehicle's registration number, make, model, and colour, plus details of where and when you last saw it. They will give you a Crime Reference Number (CRN). This is essential for your insurance claim.
2. Contact Your Insurer: Notify your insurance provider as soon as possible. They will open a claim file and guide you through their specific process.
3. Provide Documentation: Your insurer will ask for the Crime Reference Number and other documents, which typically include:
   • The V5C logbook (to prove ownership).
   • All sets of keys you have for the vehicle (to prove you didn't leave them in the car).
   • The vehicle's service history and current MOT certificate, if applicable.

How the Claim is Processed

Once you've filed the claim, the insurer will investigate. They will liaise with the police and may use their own investigators. There is usually a waiting period (e.g., 30 days) to see if the police can recover the vehicle.

If the vehicle is not recovered, the insurer will declare it a total loss and make a settlement offer. This offer will be for the market value of the vehicle at the time it was stolen – not the price you paid for it or the cost of a brand new replacement. The market value is what a similar car of the same age, mileage, and condition would have sold for just before the theft.

The Impact on Your No-Claims Bonus (NCB) and Excess

• Policy Excess: When you make a claim, you are required to pay the first portion of that claim yourself. This is known as the excess. The amount of your excess will be specified in your policy documents. For a theft claim, the insurer's settlement offer will have your excess deducted from it.
• No-Claims Bonus (NCB): A theft claim is considered a 'fault' claim (as no third party is at fault to claim from), so you will almost certainly lose some or all of your No-Claims Bonus unless you have paid extra to protect it. The loss of NCB will lead to higher premiums at your next renewal.

Protecting Your Vehicle: Practical Steps to Thwart Thieves

While insurers and manufacturers work on long-term solutions, the responsibility for protecting your vehicle falls largely on you. Taking a layered approach to security can dramatically reduce your risk and may even earn you a discount on your motor policy.

Essential Physical Security (Old-School Deterrents)

1. Faraday Pouch or Box: This is the single most important and affordable defence. When not in use, store your car keys (and the spare!) inside a signal-blocking Faraday pouch or metal box. This prevents criminals from capturing the key's signal. Test it regularly to ensure it still works.
2. Steering Wheel Lock: A highly visible and effective physical deterrent. A high-quality, brightly coloured steering wheel lock (like a Disklok) makes your car a much less attractive target. Thieves are looking for a quick, quiet getaway; a steering wheel lock forces them to spend time and make noise.
3. Driveway Security Posts / Bollards: If you park on a driveway, a retractable security post is an excellent physical barrier that stops thieves from simply driving your car away.
4. Gear Locks / Handbrake Locks: These devices physically lock the gearstick or handbrake in place, providing another layer of difficulty for any would-be thief.

Electronic & Advanced Security

1. Thatcham-Approved Tracker: A vehicle tracking device is one of the best ways to ensure your car is recovered if stolen. Insurers for high-value vehicles will often make fitting a professionally monitored, Thatcham-rated S5 or S7 tracker a mandatory condition of cover. While there is an upfront cost and often a subscription fee, it can significantly reduce your insurance premium and provides immense peace of mind.
2. Turn Off Your Fob's Wireless Signal: Some modern key fobs can be switched off. Check your car's manual or contact your dealership to see if this is an option for your model.
3. Reprogramming Keys: If you buy a used car, consider getting the keys reprogrammed by a main dealer. This ensures any old keys that were not handed over to you can no longer be used to access the vehicle.

Common Sense Precautions

• Secure Parking: If you have a garage, use it. If not, park in a well-lit, busy area, preferably covered by CCTV.
• Check for Signal Jammers: Before you walk away from your car, physically check that the doors have locked. Criminals sometimes use jamming devices to prevent your fob from locking the car.
• VIN Etching: Have your Vehicle Identification Number (VIN) etched onto the windows. This makes the car less valuable to thieves as the parts are harder to sell on.

How Insurers are Responding to the Keyless Theft Crisis

The insurance industry is not standing still. Insurers are actively adapting their strategies to manage the heightened risk posed by keyless theft.

• Premium Loading: The most direct response is to increase premiums for vehicles that are statistically more likely to be stolen. Owners of certain premium SUVs can now expect to pay thousands of pounds more for cover than they did a few years ago.
• Mandatory Security Requirements: For high-risk vehicles, many insurers now mandate the fitting of specific security devices as a prerequisite for cover. The most common requirement is a Thatcham-approved S5 tracker with 24/7 monitoring. Failure to comply can result in a refusal to offer cover or the rejection of a claim.
• Collaboration: Insurers work closely with bodies like Thatcham Research to test vehicle security systems and with police units like the National Vehicle Crime Intelligence Service (NAVCIS) to aid in the recovery of stolen vehicles and the dismantling of organised crime networks.

Choosing the Right Motor Insurance in a High-Risk World

In this challenging environment, simply opting for the cheapest quote is a risky strategy. The best car insurance provider for you will offer a policy that provides robust protection tailored to your specific needs. This is where an expert broker like WeCovr becomes invaluable.

WeCovr's FCA-authorised experts can help you navigate the complexities of the current market. We compare policies from a wide panel of the UK's leading insurers, helping you find the right balance between cost and comprehensive cover for your car, van, or business fleet.

Look Beyond the Price: Key Policy Features

When comparing policies, pay close attention to the details:

• Courtesy Car: Does the policy offer a courtesy car? Crucially, is it a 'guaranteed' courtesy car, and will it be provided in the event of theft? A standard courtesy car is often only available if your car is being repaired at an approved garage, which is no use if it has been stolen. Look for policies with enhanced courtesy car cover.
• Legal Expenses Cover: This optional extra covers your legal costs if you need to pursue uninsured losses, such as your policy excess or personal injury compensation, following an accident that wasn't your fault.
• Protected No-Claims Bonus: While it adds to your premium, protecting your NCB can save you a significant amount of money in the long run if you do need to make a theft claim.

At WeCovr, we have a strong track record of high customer satisfaction, built on providing clear, impartial advice. We can also arrange discounts on other insurance products, such as home or life insurance, when you purchase a motor policy with us.

The Future of Car Security and Insurance

The battle between car manufacturers and criminals is a constant game of cat and mouse. The industry is developing new technologies to combat relay theft:

• Ultra-Wideband (UWB) Fobs: This new generation of key fob technology can accurately sense the distance between the key and the car. It will not allow the car to be unlocked or started unless the key is genuinely within a few metres, rendering relay attacks ineffective.
• Motion Sensor Fobs: Many manufacturers are now including motion sensors in their keys. If the key is left stationary for a few minutes (e.g., on a table), it enters a 'sleep mode' and stops broadcasting a signal, preventing it from being relayed.
• Biometric Security: Fingerprint scanners or facial recognition technology, already common on smartphones, are beginning to appear in high-end vehicles as a secondary authorisation layer.

As these technologies become standard, we can expect insurers to reflect the lower risk in their premiums for cars equipped with them.

Frequently Asked Questions (FAQs)

1. Will my car insurance pay out if my car is stolen in a relay attack? Yes, provided you have a Third-Party, Fire and Theft (TPFT) or a Comprehensive policy, you are covered for theft. Your insurer will pay out the market value of your vehicle, minus your policy excess. They will expect you to have taken reasonable care, which includes having possession of all the car's keys.

2. Does using a steering wheel lock or Faraday pouch lower my insurance premium? While these devices don't typically lead to an automatic discount on your premium in the same way a tracker does, they are still highly recommended. They significantly reduce your risk of being targeted. Furthermore, if you live in a high-risk area or own a high-risk vehicle, some insurers may look more favourably on you or be more willing to offer a quote if you can demonstrate you are using multiple layers of security.

3. What happens to my No-Claims Bonus if my car is stolen and I make a claim? A theft claim is treated as a 'fault' claim by insurers because there is no third party from whom they can recover their costs. Therefore, making a claim for theft will result in the loss of some or all of your No-Claims Bonus (NCB), typically reducing it by two years. This will lead to higher premiums upon renewal. You can prevent this by purchasing 'NCB Protection' as an add-on to your policy.

4. Can an insurer refuse to cover my car due to keyless theft risk? Yes, unfortunately, this is becoming more common. Insurers are businesses that manage risk. If they assess that the risk of insuring a particular car model in a specific postcode is too high, they are within their rights to decline to offer a quotation or to impose very strict conditions, such as the mandatory fitting of an expensive S5 tracker. This is where a broker like WeCovr can help by searching a wider market for a specialist insurer who may be willing to provide cover.

Take Action Today: Get Your Expert Motor Insurance Quote

The threat of keyless car theft is real, but you are not powerless. By implementing robust security measures and securing the right level of insurance cover, you can protect your vehicle and your finances. Don't navigate the complex and rising costs of the UK motor insurance market alone.

Contact WeCovr today for a free, no-obligation quote. Our FCA-authorised experts will compare policies from a wide range of insurers to find the best car, van, or fleet insurance solution for you.