Keyless Car Theft Crisis

As an FCA-authorised expert broker in the UK with over 900,000 policies arranged, WeCovr is at the forefront of analysing the motor insurance market. This article explores the escalating keyless car theft crisis, detailing its impact on your motor insurance and how robust vehicle cover is your first line of defence against this rising threat to UK drivers.

Keyless Car Theft Crisis

The convenience of modern motoring has brought with it a sinister and silent threat. Across the United Kingdom, a vehicle crime epidemic is gathering pace, with sophisticated criminal gangs exploiting the vulnerabilities of keyless entry systems. Projections for 2025, based on data from the Office for National Statistics (ONS) and the ABI, reveal a deeply concerning trend: keyless car thefts are on track to have surged by over 50% since early 2023.

This explosion in high-tech vehicle crime is not just a statistic; it represents a tangible financial blow to the nation's drivers. The Association of British Insurers (ABI) reports that the cost of theft claims is now contributing to a claims burden well in excess of £500 million annually. Insurers paid out £1.5 billion in total motor claims in the first quarter of 2025 alone, with theft playing a significant and growing role.

For the average car owner, van driver, or fleet manager, this translates directly into higher motor insurance premiums. As insurers face mounting losses, the cost of cover is inevitably rising for everyone. This definitive guide will explain how these thefts happen, what they mean for your wallet, and crucially, how you can protect your vehicle and your finances.

The Anatomy of a Keyless Theft: How Your Car Can Vanish in Under 60 Seconds

The primary method used by criminals is the Relay Attack. This technique requires no physical damage to the vehicle and can be executed with frightening speed and silence. It exploits the very radio signal that makes your keyless system so convenient.

Here is the typical process, often carried out by a two-person team:

1. The Amplifier: One criminal, carrying a relay amplifier device, walks around the exterior of your property (house, flat, or office). The device is designed to detect the weak signal constantly being emitted by your key fob, even when it's sitting idle on your kitchen counter or in a coat pocket by the door.
2. Signal Capture: The device captures this signal and boosts it significantly.
3. The Relay: The amplified signal is then transmitted to a second device, a relay transmitter, held by an accomplice standing right next to your car.
4. The Deception: Your car's security system is tricked into believing that you are standing next to it with the key. The car receives the relayed signal, authenticates it, and unlocks the doors.
5. The Ignition: The thief gets inside. As the car still believes the key is present, they can simply press the engine start button and drive the vehicle away.

The engine will continue to run until it is manually switched off by the thief. By that point, your vehicle could be in a different county, hidden in a garage to be fitted with new plates, or already inside a metal shipping container, which blocks any GPS tracking signal.

2025's Most Targeted Vehicles: The UK's Keyless Theft Hotlist

While high-end luxury cars remain prime targets for export, the 2025 data shows a worrying diversification. Thieves are now heavily targeting popular, mid-range cars, vans, and SUVs due to the high demand for their parts on the black market. If your vehicle has a keyless entry and start system, it is on the criminals' radar.

Based on consolidated data from UK public and industry sources and the National Vehicle Crime Intelligence Service (NaVCIS), these are the models most frequently reported stolen via keyless methods in 2025.

This trend confirms that virtually any keyless vehicle is at risk, making proactive security essential for all owners.

The Financial Fallout: How Keyless Theft Directly Inflates Your Motor Insurance Premium

The link between rising theft rates and the cost of your car insurance is direct and unavoidable. Insurers base their pricing on risk and claims data. Here’s a breakdown of how the £500 million+ claims bill affects you. (illustrative estimate)

1. Across-the-Board Premium Increases

Insurance works by pooling the premiums of many to pay for the losses of a few. When theft claims increase in frequency and value, the total pool of money required by insurers to cover these losses goes up. This cost is spread across all policyholders, particularly those owning similar vehicles or living in postcodes with high theft rates. Even if you are a perfect driver with maximum no-claims, your premium will rise to reflect the increased background risk.

2. The Loss of Your No-Claims Bonus (NCB)

Your NCB or No-Claims Discount is the single biggest discount you can earn on your motor policy, with many insurers offering up to a 70% reduction for five or more claim-free years. A theft claim is almost always treated as a 'fault' claim because there is no third party from whom the insurer can recover their costs.

Making a theft claim will typically result in a significant reduction or complete loss of your NCB. For example, a driver with a 5-year NCB might see it reduced to 2 or 3 years, causing their premium to more than double at the next renewal.

3. The Double Impact of the Policy Excess

Every motor policy has an excess – the amount you must contribute towards a claim.

• Compulsory Excess (illustrative): This is set by the insurer and is non-negotiable. For vehicles on the "high-risk" list, insurers may set a compulsory theft excess of £500, £750, or even more.
• Voluntary Excess: This is an amount you can add to the compulsory excess to lower your premium.

If your car, valued at £25,000, is stolen, and your policy has a £350 compulsory excess and a £400 voluntary excess, the total excess is £750. The maximum payout you will receive from the insurer is £24,250. You are immediately out of pocket by £750. (illustrative estimate)

4. Soaring Costs for Fleet and Business Insurance

For businesses, the consequences of vehicle theft are severe. A stolen van means lost work, broken contracts, reputational damage, and the cost of replacing tools and equipment. For a fleet manager, multiple thefts can threaten the company's viability. Insurers are reacting to this heightened risk by imposing stricter terms on fleet insurance policies, including higher premiums, larger excesses for theft, and mandatory security requirements like trackers.

Your Insurance Explained: Are You Legally and Financially Protected?

In the UK, the law is clear: any vehicle used or kept on public roads must have at least Third-Party Only motor insurance. However, this legal minimum offers no protection against theft. Understanding your policy is the first step to ensuring you are not left financially exposed.

A Clear Comparison of UK Motor Insurance Levels

• Third-Party Only (TPO): Provides cover for any damage or injury you cause to another person, their vehicle, or their property. It is the absolute minimum required by law under the Road Traffic Act. If your car is stolen, you will receive nothing from your insurer and will bear the full loss yourself.
• Third-Party, Fire & Theft (TPFT): Includes all the cover of TPO, but crucially adds protection if your own car is stolen or damaged by fire. In the context of the keyless theft crisis, this is the minimum level of cover any car owner should consider.
• Comprehensive: This is the highest level of vehicle cover available. It includes everything from TPFT and also covers accidental damage to your own car, regardless of who was at fault. It may also include other benefits like windscreen cover as standard.

Understanding Optional Extras

When you buy a policy, you can add optional extras. Common ones include:

• Breakdown Cover: Assistance if your car breaks down.
• Motor Legal Protection: Covers legal costs to recover uninsured losses (like your excess) after a non-fault accident.
• Courtesy Car: Provides a replacement vehicle while yours is being repaired after an accident. Crucially, a standard courtesy car is often NOT provided for a theft claim, as there is no car to repair. Some insurers offer an "enhanced" courtesy car option that does cover theft, but you must check the policy wording.

The Ultimate Defence Strategy: How to Make Your Vehicle a Hard Target

You are not powerless against this threat. A layered security approach, combining simple habits with physical deterrents, can dramatically reduce your risk.

Layer 1: Low-Cost & No-Cost Security Habits

1. Illustrative estimate: Faraday Pouch/Box: YOUR #1 DEFENCE. This is the most critical and affordable step. A Faraday pouch is a signal-blocking wallet for your key fob. When the key is inside, its signal cannot be detected by a relay device. They cost as little as £5. Keep both your main and spare keys in a pouch or a larger Faraday box at all times when at home. Test it works: put the key in the pouch, walk up to your car, and see if it will open. If it doesn't, the pouch is working.
2. Check for "Sleep Mode" Fobs: Many newer cars (post-2019) have key fobs with motion sensors that put them to sleep after a few minutes of inactivity, preventing relay attacks. Check your vehicle's manual or with your dealer to see if your fob has this feature.
3. Strategic Parking:
   • At Home: If you have a garage, use it. A garage is a significant physical and visual barrier. If parking on a drive, park defensively. Park as close to the house as you can, or park a less desirable, non-keyless car behind your keyless one, blocking it in.
   • In Public: Choose well-lit, busy car parks, preferably those with a "Park Mark" award for security. Park with your bonnet facing a wall to make any under-bonnet tampering more difficult.

Layer 2: Physical & Electronic Security Upgrades

For high-value or high-risk vehicles, layering physical security on top is a wise investment that can also lead to car insurance discounts.

What to Do If Your Car is Stolen: A Step-by-Step Claims Guide

The moment you realise your car is gone is sickening. Stay calm and follow these steps immediately.

1. Phone the Police: Call 101 immediately. Do not use 999 unless the crime is in progress. Provide your registration number, make, model, colour, and last known location. They will issue a Crime Reference Number (CRN). This is non-negotiable for an insurance claim.
2. Contact Your Insurer's Claims Line: This number will be on your policy documents and is usually open 24/7. Inform them of the theft and provide the CRN.
3. Activate Your Tracker (If Fitted): If you have a tracking device, contact the monitoring company immediately. They will activate the device and begin liaising with the police for recovery.
4. The Insurance Process:
   • Waiting Period: The insurer will usually wait for a period (e.g., 14-28 days) to see if the police or tracking company can recover the vehicle.
   • Information Gathering: They will ask you to provide the V5C logbook, all sets of keys, the original purchase invoice, and service history. This proves ownership and helps them value the car.
   • Valuation & Settlement: If the car isn't found, the claims handler will make you an offer based on its market value at the time of the theft. This is the price for a like-for-like replacement from a reputable dealer, not what you paid for it. Research similar cars for sale to ensure the offer is fair.
   • Payout: Once a settlement figure is agreed, the insurer will deduct your policy excess and pay the remaining amount, usually via bank transfer.

Finding the Best Car Insurance Provider in a Tough Market

With premiums rising and theft an ever-present risk, navigating the motor insurance UK market can be daunting. Using an expert broker like WeCovr can make all the difference.

We are an independent, FCA-authorised broker. This means we work for you, not for the insurance companies. Our expertise allows us to:

• Scan the Entire Market: We have access to a huge panel of UK insurers, from major names to specialist providers who understand the risks of high-performance or modified vehicles.
• Recognise Your Security Efforts: We work with insurers who offer genuine discounts for approved security measures like trackers and immobilisers, ensuring your proactive steps are rewarded.
• Provide Tailored Advice: Whether you need private car insurance, van cover for your business, or a comprehensive fleet insurance policy, we tailor our search to your exact needs. Our high customer satisfaction ratings are built on this personalised approach.
• Offer More Value: When you purchase motor or life insurance through WeCovr, we can often secure discounts on other types of cover you may need, providing greater value.

Frequently Asked Questions (FAQ)

Q1: Will a Faraday pouch really stop my car from being stolen by a relay attack?

A: Yes, a correctly used Faraday pouch or box is an extremely effective defence against relay attacks. By blocking the radio signal from your key fob, it prevents thieves from capturing and amplifying it to trick your car into opening. It is the single most important and cost-effective security measure any owner of a keyless car can take. Always remember to place your spare key in a second pouch or the same box.

Q2: Will my comprehensive insurance premium automatically go up after a theft claim?

A: It is highly likely, yes. A theft claim is considered a "fault" claim, meaning your insurer cannot recover its costs from a third party. This will almost certainly lead to the loss of your No-Claims Bonus (unless you have protected it) and a higher base premium at renewal because you are now considered a higher risk. The increase can be substantial, often 50% or more, depending on the insurer and the value of the stolen vehicle.

Q3: Are electric vehicles (EVs) also at risk of keyless theft?

A: Absolutely. Electric and hybrid vehicles are just as vulnerable to relay attacks as petrol or diesel cars if they use a keyless entry and start system. In fact, due to the high value of their battery packs and advanced components, premium EVs are becoming increasingly attractive targets for organised thieves. The same security precautions—Faraday pouches, steering locks, and trackers—are essential for EV owners.

Q4: What is the difference between my compulsory and voluntary insurance excess?

A: The compulsory excess is a fixed amount set by your insurer that you must pay towards any claim; it is non-negotiable and often higher for young drivers or high-performance cars. The voluntary excess is an additional amount you agree to pay on top of the compulsory excess. Choosing a higher voluntary excess can lower your overall premium, but you must be able to afford the total excess (compulsory + voluntary) if you need to make a claim.

Q5: If my car is stolen, will my insurer pay me what I paid for it?

A: No, insurers are obliged to pay you the market value of the vehicle at the moment it was stolen. This is the cost of buying a comparable replacement of the same age, mileage, and condition. Due to vehicle depreciation, this will almost always be less than the original purchase price. Guaranteed Asset Protection (GAP) insurance is a separate policy that can cover this shortfall, but it is not part of a standard motor policy.

The keyless car theft crisis is a real and present danger to UK motorists. By understanding the threat, taking proactive security measures, and ensuring you have the correct level of motor insurance, you can protect yourself from the financial and emotional turmoil of vehicle crime.

Ready to check your cover? Get a fast, free, no-obligation motor insurance quote from WeCovr today and let our experts find the right protection for you.

Sources

• Department for Transport (DfT): Road safety and transport statistics.
• DVLA / DVSA: UK vehicle and driving regulatory guidance.
• Association of British Insurers (ABI): Motor insurance market and claims publications.
• Financial Conduct Authority (FCA): Insurance conduct and consumer information guidance.