Keyless Car Theft UK Insurance

As an FCA-authorised expert broker that has helped arrange over 800,000 policies, WeCovr understands the deep connection between vehicle security and your motor insurance costs. This guide addresses the rising tide of keyless car theft in the UK, explaining how it affects your policy and what you can do about it.

The Silent Threat How Keyless Car Theft Impacts Your UK Motor Insurance & What Drivers Can Do to Protect Their Vehicles and Premiums

The convenience of keyless entry has become a standard feature on most new vehicles. You walk up to your car, and it unlocks; you press a button, and the engine starts. It's seamless, modern, and, unfortunately, a significant security vulnerability that criminals are ruthlessly exploiting. This "silent threat" of keyless car theft, or 'relay attack', is not just a headache for car owners; it's a major factor driving up motor insurance premiums across the UK.

Understanding this threat is the first step towards protecting your vehicle, your no-claims bonus, and your wallet.

What is Keyless Car Theft (Relay Attack)?

Keyless car theft is a method used by criminals to steal vehicles without needing to physically possess the key fob. The most common technique is the relay attack. It requires two criminals working together with two pieces of electronic equipment: a relay amplifier and a transmitter.

Here’s how it works in just a few simple steps:

1. The Target: The criminals identify a desirable keyless-entry car parked on a driveway or street.
2. The Amplifier: One criminal stands near the owner's house holding the relay amplifier. This device is designed to pick up the faint signal constantly emitted by the key fob, which might be on a hallway table or in a jacket pocket inside the house. The amplifier boosts this signal.
3. The Transmitter: The second criminal stands next to the target vehicle holding the transmitter. This device receives the boosted signal from the first criminal and essentially "tricks" the car into thinking the key is right next to it.
4. The Entry: The car's security system unlocks the doors and disarms the immobiliser, believing the authentic key is present. The criminal can then open the door, press the start button, and simply drive away.

The entire process can take as little as 60 seconds and is completely silent, leaving no signs of forced entry. This efficiency is why it has become the preferred method for organised car crime gangs.

The Alarming Rise of Vehicle Theft in the UK

The scale of the problem is stark. Technology has made cars harder to steal by traditional means like hot-wiring, but it has opened the door to sophisticated digital methods.

According to the Office for National Statistics (ONS), police-recorded vehicle theft in England and Wales has seen a significant increase over recent years. The Association of British Insurers (ABI) reported in 2024 that insurers paid out a staggering £1.5 million per day for stolen cars and parts. The frequency of car theft claims is at its highest level since 2012, with a vehicle being stolen in the UK approximately every five minutes.

Top 10 Most Stolen Cars in the UK (2024)

High-end, desirable models are often targeted, but many popular family cars are also vulnerable. Below is a list of models frequently reported as stolen, often via keyless methods.

Source: Analysis based on DVLA and ABI data, 2024.

This trend directly fuels rising insurance costs. When insurers pay out more in claims, they must adjust their pricing to remain solvent, and those costs are passed on to all policyholders.

Understanding Your Legal Motor Insurance Obligations in the UK

Before diving deeper into how theft impacts your policy, it's vital to remember your legal duties as a driver. In the UK, the Road Traffic Act 1988 mandates that all vehicles used on public roads must have at least third-party motor insurance. Driving without valid insurance is a serious offence that can lead to unlimited fines, penalty points, and even disqualification.

As an FCA-authorised broker, WeCovr helps drivers, businesses, and fleet managers navigate these requirements to find compliant and cost-effective cover.

There are three primary levels of motor insurance UK providers offer:

1. 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 does not cover theft of your own vehicle or damage to it.
2. Third-Party, Fire & Theft (TPFT): This includes everything TPO covers, but adds protection if your car is stolen or damaged by fire. This is the minimum level of cover you would need to make a claim for keyless car theft.
3. Comprehensive: This is the highest level of cover. It includes everything from TPFT, plus it covers damage to your own vehicle in an accident, even if you are at fault. It also typically covers windscreen damage and personal injury.

Business and Fleet Insurance

For businesses using vehicles for commercial purposes—whether a single van for a tradesperson or a large fleet of company cars—a standard private car policy is insufficient. You need a dedicated business or fleet insurance policy. These policies are designed to cover risks associated with commercial use, including carriage of goods, multiple drivers, and higher mileage. Failure to have the correct commercial cover can invalidate your insurance in the event of a claim.

How Keyless Theft Directly Inflates Your Car Insurance Premiums

The link between rising theft rates and what you pay for your motor policy is direct and unavoidable. Insurers use vast amounts of data to calculate risk, and a vehicle's susceptibility to theft is a major rating factor.

The Impact on Your Policy and Premiums

• Vehicle-Specific Risk: Insurers maintain a "theft index" for every make and model. Cars that are frequently targeted by relay attacks, like the Range Rover or Ford Fiesta, are placed in higher insurance groups and command much higher premiums. The insurer knows there is a greater statistical probability of having to pay out a total loss claim for theft.
• Postcode Loading: Your premium is heavily influenced by your postcode. If you live in an area with a high rate of vehicle crime, your premium will be higher, regardless of how secure you believe your property is. Insurers use this data to predict the likelihood of a claim.
• The Effect of a Claim on Your Record: If you are unfortunate enough to have your car stolen, you will need to make a claim on your insurance (assuming you have TPFT or Comprehensive cover).
  • Loss of No-Claims Bonus (NCB): A theft claim is treated as an "at-fault" claim because there is no third party to recover costs from. This means you will typically lose some or all of your NCB, which can dramatically increase your premium at renewal for several years. You can mitigate this with a "Protected NCB" add-on, but this also adds to your initial cost.
  • Paying the Excess: You will have to pay the compulsory and voluntary excess on your policy before the insurer pays out the remainder of the vehicle's market value. This is the uninsured portion of your loss.
  • Higher Future Premiums: Having a theft claim on your record will mark you as a higher risk to future insurers, leading to increased quotes for at least the next five years.

Understanding Key Policy Terms

When dealing with a theft claim, you'll encounter several key terms:

How to Protect Your Vehicle from Keyless Theft

The good news is that there are numerous effective, and often inexpensive, steps you can take to secure your vehicle. Layering different types of security is the most effective strategy.

1. Physical and Visual Deterrents (The 'Old School' Method)

Never underestimate the power of a visible deterrent. A criminal looking for a quick and quiet theft will often move on to an easier target if they see physical security devices.

• Steering Wheel Lock: A high-quality, brightly coloured steering wheel lock is one of the most effective and affordable deterrents. It makes the car impossible to drive and signals to thieves that your vehicle is not an easy target.
• Faraday Pouch or Box: This is essential for all keyless car owners. A Faraday pouch is a small, inexpensive wallet lined with a special metallic material that blocks the radio signal from your key fob. When your key is inside, criminals cannot capture its signal. Keep your main and spare keys in one at all times when not in use.
• Driveway Bollard or Gate: A lockable security post or a sturdy gate at the end of your driveway is a formidable physical barrier that prevents a car from being driven away.
• Wheel Clamp: Similar to a steering wheel lock, a wheel clamp is a strong visual deterrent that physically prevents the wheel from turning.

2. Technical and Electronic Security

Modern problems require modern solutions. Alongside physical security, consider these technical measures.

• Turn Off the Key Fob Signal: Some manufacturers now include a feature that allows you to turn off the key's wireless signal. Check your vehicle's handbook or contact your dealer to see if this is an option for your model.
• Install a Thatcham-Approved Tracker: A vehicle tracker won't stop your car from being stolen, but it dramatically increases the chances of recovery. Many insurers now mandate the installation of a professionally monitored, Thatcham-approved S5 or S7 tracker for high-value or high-risk vehicles as a condition of providing theft cover. An S5 tracker includes Automatic Driver Recognition (ADR), which alerts the monitoring centre if the car is moved without the authorised driver tag present.
• Install an Aftermarket Immobiliser: A secondary, professionally installed immobiliser that requires a unique PIN code to be entered or a tag to be present before the engine will start can thwart thieves even if they get past the car's factory-fitted security.

Comparison of Security Devices

Note: Costs are estimates and can vary by brand and installer. Subscription fees for trackers are typically £150-£200 per year.

What to Do If Your Keyless Car Is Stolen: A Step-by-Step Guide

Discovering your car has been stolen is a deeply stressful experience. Acting quickly and methodically can make the process smoother and improve the chances of a successful insurance claim.

1. Contact the Police Immediately: Your first call should be to the police to report the theft. You will need to provide your vehicle's registration number, make, model, and colour. They will give you a Crime Reference Number (CRN). This is absolutely essential for your insurance claim.
2. Contact Your Insurer: Call your insurance provider's 24-hour claims line as soon as possible. Have your policy number and the CRN ready. They will guide you through their specific claims process, which will involve completing a claim form.
3. Gather Your Documents: Your insurer will ask for several documents to process the claim, including:
   • The V5C logbook (proof of ownership).
   • Any service history and the original purchase receipt.
   • Both sets of car keys (to prove you didn't leave them in the vehicle).
4. Inform the DVLA: You must tell the DVLA that your vehicle has been stolen. Your insurer may handle this, but it's your responsibility to check.
5. Contact Your Finance Company: If you have outstanding finance on the vehicle (e.g., a PCP or HP agreement), you must inform the finance company immediately. Any insurance payout will typically go to them first to settle the outstanding loan.

Finding the Right Motor Insurance in a Challenging Market

With premiums on the rise and insurers becoming more selective about the risks they take on, finding the right motor policy is more important than ever. This is where an expert broker like WeCovr can be invaluable.

WeCovr provides access to a wide panel of UK insurers, including specialist providers who may offer better terms for high-risk vehicles or drivers with a claims history. Our team can help you compare not just prices but also the crucial details of the policy wording, ensuring you have the cover you actually need.

What to Look For in a Policy

• Theft Cover as Standard: Ensure you choose a TPFT or Comprehensive policy.
• Tracker Requirements: Check if the insurer mandates a tracker for your vehicle. If they do, failing to install one will invalidate your theft cover.
• Courtesy Car Provision: A standard courtesy car is usually only provided if your vehicle is being repaired. It is often not provided for a theft claim. Look for an enhanced "Guaranteed Hire Car" add-on, which provides a replacement vehicle in the event of a total loss or theft.
• Protected No-Claims Bonus: Consider this add-on if you have a high NCB. It allows you to make one or two claims within a set period without your discount being affected.

By choosing WeCovr, you can also benefit from discounts on other insurance products, such as home or life insurance, when you purchase a motor policy. Our high customer satisfaction ratings reflect our commitment to finding the best possible outcomes for our clients, at no extra cost.

Frequently Asked Questions (FAQ)

Here are answers to some common questions about keyless car theft and insurance.

Will my motor insurance be void if I don't use a Faraday pouch and my car is stolen? Generally, no. Most standard motor insurance UK policies do not currently contain a specific clause mandating the use of a Faraday pouch. However, insurers expect you to take 'reasonable care' to protect your vehicle. As awareness of relay attacks grows, insurers may introduce such conditions in the future, especially for high-risk models. Using a pouch is a best practice for security, not just an insurance requirement.

Does installing a tracker guarantee a lower insurance premium? Not always, but it can significantly help. For many high-value or frequently stolen vehicles, a Thatcham-approved tracker is now a mandatory requirement to get theft cover at all. For other vehicles, many insurers will offer a discount because the tracker reduces their risk by increasing the chance of recovery. A specialist broker like WeCovr can identify which insurers provide the best discounts for approved security devices.

What is the difference between a standard courtesy car and a guaranteed hire car? A standard courtesy car is typically a small vehicle provided by the garage only while your car is being repaired following an accident. It is rarely offered if your car is written off or stolen. A "Guaranteed Hire Car" or "Guaranteed Replacement Vehicle" is an optional policy add-on that provides you with a hire car for a set period (e.g., 14 or 21 days) if your car is stolen or declared a total loss, ensuring you remain mobile while your claim is settled.

The landscape of vehicle crime is constantly evolving. By staying informed, taking proactive security measures, and ensuring you have the right level of motor insurance, you can protect yourself from the financial and emotional turmoil of keyless car theft.

Ready to review your motor insurance and ensure you're properly protected at a competitive price? Get a free, no-obligation quote from WeCovr today. Our FCA-authorised experts can compare policies from a wide range of UK providers for your car, van, or fleet, helping you find the best cover for your needs.