Keyless Car Theft Insurance UK

As FCA-authorised experts in the UK motor insurance market, WeCovr has helped arrange over 800,000 policies. We see first-hand how keyless car theft—a silent, high-tech crime—is dramatically reshaping risk for drivers and insurers alike, making it essential to understand both the threat and your protection.

The Invisible Threat: How Keyless Car Theft is Reshaping UK Motor Insurance & Essential Steps to Protect Your Vehicle and No-Claims Bonus

The convenience of keyless entry and start was once a luxury feature. Today, it's standard on most new vehicles, from family hatchbacks to executive saloons and commercial vans. But this convenience has come at a cost, opening the door to a new breed of sophisticated criminals who can steal your vehicle from your driveway in under a minute, often without ever making a sound.

This surge in high-tech vehicle crime is sending shockwaves through the UK motor insurance industry. Insurers are facing record-high claim payouts, forcing them to re-evaluate risk, increase premiums for certain models, and in some cases, demand specific security measures before they will even offer cover.

This comprehensive guide will explain everything you need to know about keyless car theft, its impact on your insurance, and the crucial steps you can take to safeguard your vehicle, protect your no-claims bonus, and ensure you have the right cover in place.

What is Keyless Car Theft and How Does It Work?

Understanding the enemy is the first step to defeating them. Keyless car theft, often called a "relay attack," is a method that exploits the technology designed for your convenience.

Your keyless fob constantly emits a low-level radio signal. When the fob is close to your car (usually within a couple of metres), the car detects it, allowing you to unlock the doors and start the engine with the push of a button.

Criminals use a simple two-device system to trick your car into thinking the key is nearby, even when it’s safely inside your house.

The Relay Attack in 4 Simple Steps:

1. The Search: A criminal stands near your front door or window holding a relay amplifier. This device is designed to detect the faint signal from your key fob, which might be on a hallway table or in your jacket pocket.
2. The Boost: The amplifier captures this signal and boosts it, relaying it to a second device (a transmitter) held by an accomplice standing next to your car.
3. The Trick: The transmitter mimics your key fob, broadcasting the boosted signal. Your car’s security system is tricked into thinking the genuine key is right beside it.
4. The Getaway: The car unlocks. The accomplice gets in, pushes the start button, and drives away. The whole process can take as little as 60 seconds.

Because the engine is already running, the car won't cut out until it is next turned off, by which point it could be miles away in a chop shop or shipping container.

Other, less common methods include signal jamming, where thieves block the locking signal from your fob as you walk away, leaving the car unsecured, and code grabbing, where they use advanced devices to capture and clone your key's unique code.

The Alarming Rise of Keyless Vehicle Crime in the UK

The statistics paint a sobering picture. According to the latest figures from the Office for National Statistics (ONS), vehicle theft has seen a significant increase in recent years, with police-recorded crime data showing a sharp rise that security experts directly attribute to the vulnerability of keyless systems.

The Association of British Insurers (ABI) reports that insurers paid out over £1.5 million every day in 2023 for stolen cars and parts. A vehicle is now stolen approximately every eight minutes in the UK, and a large proportion of these are keyless thefts.

Why the surge?

• High Profit, Low Risk: It's a quiet, non-violent crime that is difficult to trace.
• Prevalence of Technology: The vast majority of new cars sold in the UK now feature keyless technology.
• Organised Crime: Stolen vehicles are often quickly stripped for parts or exported abroad by organised criminal gangs, making recovery incredibly difficult.

Some models are targeted more than others due to their high resale value (both as whole vehicles and for parts) and known security vulnerabilities.

Most Frequently Stolen Cars in the UK (2024/2025)

Source: Analysis based on data from DVLA and UK police forces.

If your vehicle is on this list, it doesn't mean it will be stolen, but it does mean you should be extra vigilant and that insurers will classify it as higher risk.

How Keyless Theft is Reshaping UK Motor Insurance

The ripple effect of rising theft claims is being felt across the entire motor insurance UK landscape. Insurers are businesses that price risk. When the risk of theft for a particular car model or in a specific postcode goes up, so do the premiums.

1. Soaring Premiums for High-Risk Vehicles

Owners of frequently targeted vehicles, such as Range Rovers, have reported astronomical increases in their insurance quotes, with some insurers refusing to offer cover at all. This isn't a blanket punishment; it's a direct financial response to the data. If an insurer has to pay out £70,000 for a stolen luxury SUV, that cost has to be absorbed and reflected in the premiums of similar vehicle owners.

2. Mandatory Security Requirements

To combat these losses, insurers are no longer just recommending security measures; they are increasingly making them a condition of the policy. For a high-value or high-risk vehicle, your insurer might require you to have:

• A Thatcham-Approved S5 Tracker: This is the highest level of vehicle tracker, featuring Automatic Driver Recognition (ADR). If the car is moved without the authorised driver tag present, an alert is sent to a secure operating centre, which can track the vehicle and liaise with the police.
• A Steering Wheel Lock: A highly visible, physical deterrent.
• Secure Overnight Parking: Proof of parking in a locked garage or on a secure driveway may be required.

Failure to install and maintain these devices can lead to a claim being rejected, leaving you with a huge financial loss.

3. The Impact on Your No-Claims Bonus (NCB)

Your No-Claims Bonus, or No-Claims Discount (NCD), is one of the most valuable assets in motor insurance. For every year you drive without making a claim, you earn a discount on your premium, which can be as high as 70% or more after five or more claim-free years.

A theft claim will have a devastating impact on your NCB. Even if the theft wasn't your fault, you have still made a claim. Typically, a single claim will reduce your NCB by two years, wiping out a significant portion of your discount. For example, a driver with 5 years' NCB could see it reduced to just 3, leading to a sharp premium increase at renewal that will last for several years.

You can purchase NCB Protection as an optional extra, which allows you to make one or two claims within a set period without your discount being affected. However, while your discount is protected, your overall base premium may still rise due to the insurer viewing you as a higher risk.

Understanding Your Motor Insurance Policy: The Essentials

Navigating the world of motor insurance can be confusing. To protect yourself properly, it's vital to understand the basic structure of a policy and what you are legally required to have.

The Legal Minimum: Third-Party Insurance

In the United Kingdom, it is a legal requirement under the Road Traffic Act 1988 to have at least Third-Party Only (TPO) insurance to drive or keep a vehicle on a public road. Driving without insurance carries severe penalties, including a fixed penalty of £300 and 6 penalty points, with the potential for an unlimited fine and disqualification if the case goes to court.

Here are the main levels of cover:

• Third-Party Only (TPO): This is the most basic level. It covers injury or damage you cause to other people, their vehicles, or their property. Crucially, it does not cover damage to, or theft of, your own vehicle.
• Third-Party, Fire & Theft (TPFT): This includes everything TPO covers, but adds protection if your own car is stolen or damaged by fire. This is the minimum level of cover you should consider if you are worried about theft.
• Comprehensive: This is the highest level of cover. It includes everything from TPFT, but also covers accidental damage to your own vehicle, regardless of who was at fault. It often includes other benefits like windscreen cover as standard. Paradoxically, comprehensive cover can sometimes be cheaper than lower levels, so it's always worth comparing quotes.

Business and Fleet Insurance Obligations

For businesses that use vehicles—whether it's a single van for a sole trader or a large fleet of company cars—the insurance obligations are just as strict. Standard private car insurance is not sufficient. You need business or commercial vehicle insurance that covers use for business purposes.

Fleet insurance is a specialised policy designed to cover multiple vehicles under a single umbrella, simplifying administration and often reducing costs. As experts in fleet insurance, WeCovr helps businesses ensure they have the correct level of cover to protect their assets, employees, and legal liabilities.

Key Policy Terms Explained

• Excess: The amount you must pay towards any claim. There are two types:
  • Compulsory Excess: A fixed amount set by the insurer.
  • Voluntary Excess: An additional amount you agree to pay. Choosing a higher voluntary excess can lower your premium, but make sure it's an amount you can afford to pay if you need to claim.
• Optional Extras: These are add-ons you can use to tailor your policy:
  • Breakdown Cover: Assistance if your vehicle breaks down.
  • Motor Legal Protection: Covers legal costs if you're involved in an accident that isn't your fault.
  • Courtesy Car: Provides a replacement vehicle while yours is being repaired after an accident (note: this often doesn't apply for theft claims, where a hire car may be offered for a limited period).

Essential Steps to Protect Your Vehicle from Keyless Thieves

While insurers are adapting, the primary responsibility for vehicle security still lies with the owner. A layered security approach is the most effective way to deter thieves.

Layer 1: Block the Signal

This is the single most important step for preventing a relay attack.

• Faraday Pouch or Box: These are small, inexpensive containers lined with a metallic material that blocks all radio signals. When you are at home, always keep your main key fob and your spare key inside a Faraday pouch or box. This makes a relay attack impossible.
• Deactivate the Fob: Some modern key fobs can be put into "sleep mode" by pressing a sequence of buttons. Check your vehicle's handbook to see if this feature is available.

Layer 2: Physical & Visual Deterrents

Criminals want an easy target. The more difficult you make it for them, the more likely they are to move on.

• Steering Wheel Lock: A high-quality, brightly coloured steering wheel lock (like a Disklok) is a powerful visual deterrent. It tells a thief that even if they get into the car, they will need time and noisy tools to be able to drive it.
• Driveway Security: If you have a driveway, consider installing a retractable security bollard or gate.
• Secure Parking: Whenever possible, park in a well-lit, busy area. At home, a locked garage is the safest place for your car.

Layer 3: Tracking & Recovery

• Install a GPS Tracker: For high-value vehicles, a Thatcham-approved tracker is a wise investment and may be an insurance requirement.
  • Category S7: A system that is monitored 24/7 and alerts you if the vehicle is moved without the ignition on (e.g., towed).
  • Category S5: The gold standard. Includes all S7 features plus Automatic Driver Recognition (ADR) tags. If the car starts and the tag isn't present, an alert is triggered.

Security Layering Checklist

What to Do if Your Keyless Car is Stolen

Discovering your car has been stolen is a deeply unpleasant experience. Acting quickly and methodically is key.

1. Report to the Police Immediately: Call 101 (or 999 if the crime is in progress). You will need to provide your car's make, model, colour, and registration number. You will be given a Crime Reference Number (CRN). This is essential for your insurance claim.
2. Contact Your Insurer: Find your insurer's 24-hour claims line. Have your policy number and the CRN ready. They will guide you through their process.
3. Activate Your Tracker: If you have a tracker, inform the tracking company immediately. They will activate the device and begin liaising with the police to locate your vehicle.
4. Inform the DVLA: You must tell the DVLA your vehicle has been stolen. You can find the relevant forms and information on the gov.uk website.
5. Contact Your Finance Company: If the car is on finance or leased, you must inform the finance company as they are the legal owner.

Your insurer will conduct an investigation. If the car is not recovered (usually within 30 days), they will make a settlement offer based on the car's market value at the time of the theft, minus your policy excess.

How WeCovr Can Help Secure the Right Cover for You

In this changing and often challenging insurance market, having an expert on your side is invaluable. WeCovr is an FCA-authorised insurance broker with deep expertise across the motor insurance UK market, from private cars and motorcycles to vans and large commercial fleets.

Our specialists understand the risks posed by keyless theft and can help you navigate the requirements of different insurers. We work with a wide panel of the best car insurance providers to find cover that is not only competitively priced but also appropriate for your vehicle's specific risk profile. We can help you identify insurers who may offer better terms for owners who have proactively fitted approved security devices.

Because we have helped arrange over 800,000 policies, we have the experience and market knowledge to find solutions, even for vehicles that are considered 'high-risk'. We do all the comparison work for you at no cost, and our clients benefit from high customer satisfaction ratings. Furthermore, clients who purchase motor or life insurance through WeCovr can often access discounts on other insurance products we offer.

Don't let your vehicle's security be an afterthought. Protect your asset, your no-claims bonus, and your peace of mind.

Contact WeCovr today for a free, no-obligation quote and let our experts find the right motor insurance policy for your car, van, motorcycle, or fleet.