Keyless Car Theft & Insurance

As an FCA-authorised motor insurance expert that has helped arrange over 900,000 policies, WeCovr sees firsthand the devastating impact of vehicle crime. This guide explores the UK’s keyless theft epidemic, explaining how it affects your motor insurance and what you can do to fight back.

The UK's Unseen Threat How Exploding Keyless Car Thefts Are Driving Up Premiums and What You Can Do Now to Protect Your Vehicle and Motor Insurance

It happens in seconds, often silently and in the dead of night. While you sleep, criminals using sophisticated gadgets can capture your car key's signal from outside your home, unlock your vehicle, and drive it away without ever breaking a window. This is keyless car theft, a digital-age crime wave that is sweeping across the United Kingdom.

The consequences are far-reaching. Beyond the personal trauma of having your vehicle stolen, this surge in theft is a primary driver behind the rocketing cost of motor insurance for every driver in the UK. Insurers are paying out record sums, and those costs are inevitably passed on to you, the policyholder.

This comprehensive guide will demystify keyless car theft, explain its direct impact on your insurance policy, and provide you with actionable, expert-approved steps to protect your vehicle and control your premiums.

What Exactly is Keyless Car Theft?

Keyless entry and start systems, once a premium feature, are now standard on most new vehicles. They offer convenience: you can unlock and start your car without ever taking the key fob from your pocket or bag. However, this convenience has been exploited by criminals.

The most common method is the Relay Attack.

1. The Capture: One criminal stands near your house holding a 'relay amplifier'. This device boosts the signal from your key fob, which is likely sitting on a hallway table or kitchen counter inside. The key fob thinks the car is nearby and emits its unique security code.
2. The Relay: The amplifier transmits this captured code to a second device, a 'relay transmitter', held by an accomplice standing next to your car.
3. 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 start the car and drive away.

The entire process can take less than 60 seconds. There is no forced entry, no smashed glass, and no alarm sound, which is why it's often called the UK's unseen threat.

The Shocking Scale of the Problem: UK Vehicle Theft Statistics

The numbers paint a stark picture. Vehicle theft is not a minor issue; it's a national crisis costing motorists and insurers billions.

According to the Association of British Insurers (ABI), the cost of motor theft claims paid by insurers in 2023 reached a record £669 million, the highest figure since records began. This equates to £1.8 million paid out every single day. The data for 2024 and early 2025 suggests this trend is continuing its upward trajectory.

The Office for National Statistics (ONS) confirms this trend, with its crime survey for England and Wales showing a significant year-on-year increase in "theft of a motor vehicle."

Which Cars Are Most at Risk?

While any keyless vehicle can be a target, data from the DVLA and insurance claims consistently shows that certain models are disproportionately targeted by organised crime gangs, often for export or 'chop shop' dismantling.

Top 10 Most Stolen Car Models in the UK (2024/2025 Projections)

1. Range Rover Sport
2. Range Rover Vogue
3. Ford Fiesta
4. Lexus RX
5. Land Rover Discovery
6. Mercedes-Benz C-Class
7. BMW X5
8. Ford Puma
9. Audi A3
10. Toyota RAV4

If you own one of these vehicles, or any premium SUV or saloon, you are at a significantly higher risk and will likely see this reflected in your motor insurance quotes.

How Keyless Theft Directly Inflates Your Motor Insurance Premium

The fundamental principle of insurance is the pooling of risk. Premiums collected from all policyholders are used to pay for the claims of a few. When the cost and frequency of those claims rise dramatically, premiums for everyone must follow suit.

Here’s the direct chain of events:

1. Increased Thefts: Criminals steal more cars using keyless methods.
2. More Insurance Claims: More owners make theft claims on their policies.
3. Higher Insurer Payouts: The ABI confirms that insurers are paying out record sums, not just for the stolen vehicle's value but also for replacement locks, courtesy cars, and administrative costs.
4. Recalculated Risk: Insurers use this data to recalculate the risk associated with insuring different vehicles, postcodes, and driver profiles.
5. Higher Premiums for Everyone: To cover the increased costs and future projected losses, insurers raise their base premiums across the board. Owners of high-risk vehicles in high-theft areas face the steepest increases, with some seeing their annual premiums double or even triple at renewal.

As an independent, FCA-authorised broker, WeCovr has seen quotes for high-risk vehicles become almost unaffordable from some mainstream insurers, highlighting the importance of comparing the market with a specialist who understands these new risk factors.

Are You Covered? Understanding Your Motor Insurance Policy

In the UK, it is a legal requirement under the Road Traffic Act 1988 to have at least third-party motor insurance for any vehicle used on public roads. But does that cover you for theft? The answer depends on your level of cover.

The Three Levels of Car Insurance Cover

Let's break down the three main types of motor insurance UK providers offer:

• Third-Party Only (TPO): This is the minimum legal requirement. It covers injury or damage you cause to other people, their vehicles, or their property. It provides no cover for the theft of your own vehicle. If your car is stolen and you only have TPO cover, you will have to bear the entire financial loss yourself.
• Third-Party, Fire & Theft (TPFT): This includes TPO cover and also protects you if your own car is stolen or damaged by fire. This is the minimum level of cover you need to be protected against keyless car theft.
• Comprehensive: This is the highest level of cover. It includes everything from TPFT, plus it covers damage to your own vehicle, even in an accident that was your fault. Paradoxically, comprehensive cover can sometimes be cheaper than TPFT, so it's always worth comparing quotes for both.

Business and Fleet Insurance Obligations

For businesses, the obligations are similar but more complex. Fleet insurance policies, which cover multiple vehicles under one policy, must also meet the minimum third-party requirement. However, for any prudent business, Comprehensive cover is the only realistic option. A stolen van, lorry or company car can halt business operations, damage client relationships, and lead to significant financial loss beyond the vehicle's value. Robust theft cover is essential to protect valuable assets and ensure operational continuity.

Navigating a Theft Claim: What You Need to Know

Discovering your car has been stolen is a deeply unpleasant experience. Knowing what to do next can help reduce the stress and ensure your claim proceeds smoothly.

Your Step-by-Step Action Plan:

1. Contact the Police Immediately: Report the theft by calling 101 (or 999 if the crime is in progress). You will need to provide your vehicle's registration number, make, model, and colour. You will be given a Crime Reference Number (CRN). This is essential for your insurance claim.
2. Contact Your Insurer: Call your insurance provider's claims line as soon as possible. Have your policy number and the CRN ready. They will guide you through their specific process and ask for a statement.
3. Provide Information: You will need to provide details about the theft, the vehicle's last known location, and information about the keys. Insurers will need to rule out fraud, so they will ask if all sets of keys are accounted for. Be prepared to send them any remaining keys.

Key Insurance Terms Explained in a Theft Scenario:

• No-Claims Bonus (NCB) / No-Claims Discount (NCD): This is a discount you earn for each year you go without making a claim. A theft claim is considered a 'fault' claim (as no third party is liable), so you will almost certainly lose some or all of your NCB unless you have paid extra for NCB Protection. Even with protection, your base premium is still likely to rise at renewal because you now represent a higher risk.
• Excess: This is the amount you must contribute towards the claim. There are two types:
  • Compulsory Excess: A fixed amount set by the insurer based on their risk assessment of your profile.
  • Voluntary Excess: An additional amount you agree to pay to lower your premium. When your car is stolen and not recovered, the insurer will pay you its market value, minus your total excess. For example, if your car's market value is £15,000 and your total excess is £500, your payout will be £14,500.
• Optional Extras: Your motor policy can be enhanced with add-ons like breakdown cover or legal expenses. One of the most important in a theft scenario is the Courtesy Car. A standard courtesy car is usually only provided if your vehicle is being repaired at an approved garage. In a theft case, where the car is gone, a courtesy car is often not provided unless you have specifically purchased an enhanced 'hire car' add-on that covers theft situations. Always check your policy wording carefully.

Fight Back: How to Protect Your Vehicle From Keyless Theft

The good news is that you are not powerless. A combination of simple habits and low-cost security devices can dramatically reduce your risk of becoming a victim. Insurers favour a "layered" approach to security.

Layer 1: Simple, Low-Cost Solutions (Essential)

• Faraday Pouch/Box: This is the single most effective defence against relay attacks. A Faraday pouch is a small, inexpensive bag lined with a metallic material that blocks your key fob's signal. When you are at home, always keep your key fob (and your spare!) inside a reputable Faraday pouch or box. This prevents relay attack devices from capturing the signal.
• Physical Deterrents: Old-school security still works wonders. A brightly coloured steering wheel lock (like a Disklok) or a gearstick lock is a powerful visual deterrent. Thieves are looking for the easiest, fastest target; seeing a robust physical lock will often make them move on to the next, unprotected vehicle.

Layer 2: Enhanced Security Measures (Highly Recommended)

• Driveway Security: If you have a driveway, consider installing a telescopic security post or bollard. This provides a robust physical barrier that is very difficult for thieves to bypass quickly and quietly.
• 'Sleep Mode' Keys: Many modern key fobs (from manufacturers like Ford, Mercedes, and BMW since around 2019) have a motion sensor built in. If the key is left stationary for a few minutes, it goes into 'sleep mode' and stops transmitting a signal, thwarting a relay attack. Check your vehicle's handbook to see if your key has this feature. If not, some manufacturers can disable the keyless function at a dealership.
• OBD Port Protector: Sophisticated thieves can plug a device into your car's On-Board Diagnostics (OBD) port to programme a new key. A simple, lockable OBD port protector can block this access point.

Layer 3: Advanced Protection (For High-Value/High-Risk Vehicles)

• Thatcham-Approved Tracker: A vehicle tracker won't stop the initial theft, but it massively increases the chances of recovery. Devices approved by Thatcham Research, the UK's vehicle security experts, are monitored 24/7 by a secure operating centre that liaises directly with the police to track and recover your stolen vehicle. They are often a requirement from insurers for high-value cars.

Security Measure Comparison

Can Security Upgrades Lower My Motor Insurance Premium?

Yes, they can, and in the current climate, they are one of the most effective tools you have to control your costs. Insurers want to see that you are taking proactive steps to mitigate risk.

When you get a motor insurance UK quote, you will be asked about the security devices fitted to your vehicle. Declaring factory-fitted alarms and immobilisers is standard, but adding Thatcham-approved aftermarket devices can lead to noticeable discounts.

• Thatcham Category S7 & S5 Trackers: These are the gold standard. Insurers recognise that these devices lead to higher recovery rates, reducing their total loss payouts. For many high-performance or luxury vehicles, insurers will make fitting an S5 tracker (the highest level, with driver identification tags) a mandatory condition of cover. Declaring one can unlock more competitive quotes from the best car insurance providers.
• Physical Locks: While the discount for a steering lock may be small, its real value is in preventing the claim in the first place, thereby protecting your No-Claims Bonus and preventing a huge premium hike at renewal.

Always inform your insurer of any new security devices you have installed.

The Future of Car Security and Insurance

The battle between car manufacturers and criminals is a constant game of cat-and-mouse. Manufacturers are responding with more secure technology, such as Ultra-Wideband (UWB) key fobs that can accurately sense distance, making relay attacks much harder.

The insurance industry is also adapting. We are seeing the rise of telematics or 'black box' insurance, where a device monitors your driving habits. These devices often include GPS tracking, which can aid in vehicle recovery after a theft, making them a dual-purpose tool for safety and security.

The UK government and police are also increasing their focus on tackling organised vehicle crime, recognising its impact on communities and the economy. However, for the foreseeable future, the primary responsibility for vehicle security will remain with the owner.

Get the Right Protection at the Right Price

In this challenging market, simply auto-renewing your motor policy is a recipe for overpaying. The threat of keyless theft has made the insurance landscape more complex than ever, with premiums varying wildly between providers depending on their appetite for risk.

By working with an FCA-authorised broker like WeCovr, you gain an expert on your side. We can:

• Compare quotes from a wide panel of mainstream and specialist insurers to find the most suitable vehicle cover.
• Find cover for high-risk vehicles that might be difficult to insure elsewhere.
• Advise on the security measures that will have the biggest impact on your premium.
• Package your cover, potentially offering discounts on other insurance products like home or life insurance when you take out a motor policy with us.

Our service, reflected in high customer satisfaction ratings, is built on providing clear, impartial advice to help UK drivers, van owners, and fleet managers navigate the market and secure the best possible protection at a competitive price.

Frequently Asked Questions (FAQ)

1. Does a comprehensive car insurance policy automatically cover keyless car theft? Yes, a comprehensive policy includes cover for theft. If your car is stolen via a keyless "relay attack" and not recovered, your insurer will pay out its current market value, minus your policy excess. The same applies to Third-Party, Fire & Theft policies. However, Third-Party Only, the minimum legal cover, does not include any protection for theft.

2. Will using a Faraday pouch or steering wheel lock reduce my motor insurance premium? While a Faraday pouch itself won't typically earn a discount, it is the single best way to prevent a claim, which protects your No-Claims Bonus and prevents future premium hikes. A Thatcham-approved physical device like a steering lock may earn a small discount from some insurers. The most significant discounts are usually reserved for professionally installed Thatcham-approved trackers (Category S7 or S5).

3. What happens to my No-Claims Bonus (NCB) if my car is stolen? A theft claim is treated as a 'fault' claim by insurers because there is no third party to recover costs from. Therefore, if you make a claim for theft, you will lose a portion or all of your No-Claims Bonus, typically setting you back two years. The only way to prevent this is if you have purchased an optional 'NCB Protection' add-on with your policy.

4. My insurer is refusing to cover my car because of where I live and the model I own. What can I do? This is becoming increasingly common for owners of high-risk vehicles in postcodes with high theft rates. If you find yourself in this situation, do not give up. Your best option is to contact an independent insurance broker like WeCovr. We work with a broad panel of specialist insurers who have a greater appetite for non-standard risks and can often find a policy when mainstream providers cannot.

Don't let keyless car theft put your finances at risk. Protect your vehicle, protect your premium, and get the right cover today.

Contact WeCovr now for a free, no-obligation motor insurance quote and let our experts find the best policy for you.