UK Car Crime & Your Insurance

As an FCA-authorised expert broker in the motor insurance UK market, WeCovr has helped over 750,000 drivers secure the right cover. We see first-hand the devastating impact of vehicle theft. This guide explains the connection between rising car crime and your insurance premiums, and what you can do about it.

Is Your Car a Target? Understanding the Soaring Impact of UK Car Crime on Your Motor Insurance and Essential Steps to Reduce Your Risk and Premiums

The familiar chime of your car unlocking is a sound of modern convenience. But for organised criminals, it’s a sound of opportunity. Across the UK, a sophisticated and brazen wave of car crime is pushing motor insurance premiums to record highs. From keyless "relay attacks" that see premium vehicles vanish from driveways in under 60 seconds, to the rampant theft of catalytic converters, no driver is immune.

The uncomfortable truth is that every stolen car, every smashed window, and every claim paid out by an insurer contributes to the rising cost of your policy. In this definitive guide, we will dissect the current state of UK car crime, explain precisely how it inflates your premiums, and provide a clear, actionable roadmap to protect your vehicle, reduce your risk, and ultimately, lower your insurance costs.

The Alarming Rise of UK Car Crime: What the Latest Figures Reveal

Vehicle theft is no longer just an opportunistic crime; it has evolved into a highly organised, technology-driven enterprise. The latest statistics from the Office for National Statistics (ONS) and police forces paint a concerning picture.

According to the latest ONS crime survey for England and Wales, vehicle theft has surged by over 20% in the last two years. Insurers are feeling the impact directly. The Association of British Insurers (ABI) reported that member firms paid out a staggering £1.5 million every day in 2023 for stolen cars and theft from vehicles. This represents the highest annual figure since 2012.

Key Trends Driving the Surge:

• Keyless Car Theft (Relay Attacks): This is the dominant method for stealing modern cars. Criminals work in pairs using a relay device. One stands near your house to capture the signal from your key fob (even through doors and walls), while the other stands by your car with a transmitter that tricks the vehicle into thinking the key is present. The car unlocks and starts, allowing them to drive away silently.
• "Chop Shops": Stolen vehicles are often taken to illicit garages, known as "chop shops," where they are rapidly dismantled. The parts are then sold on the black market or used to repair written-off vehicles, making them incredibly difficult to trace.
• Catalytic Converter Theft: The precious metals inside catalytic converters—rhodium, palladium, and platinum—have extremely high values. Thieves can slide under a car and remove the device in minutes, leaving the owner with a repair bill often exceeding £1,000. Hybrid vehicles, like the Toyota Prius and Honda Jazz, are common targets as their converters are less corroded.
• Tool Theft from Vans: For tradespeople, a van is their livelihood. Organised gangs target vans parked overnight, often peeling back doors ("peel and steal") or bypassing locks to steal thousands of pounds worth of tools. This not only involves an insurance claim but can halt a small business in its tracks.

UK's Most Stolen Cars (Based on recent DVLA & Police Data)

While any car can be a target, some models are stolen more frequently due to their popularity, resale value of parts, or specific security vulnerabilities.

Source: Analysis of DVLA, ONS, and UK police force data.

How Car Crime Directly Inflates Your Motor Insurance Premiums

It’s easy to think of insurance as a personal contract between you and your provider. But in reality, it operates on a principle of "pooled risk." Every driver's premium goes into a large pot of money, which insurers use to pay out claims.

When theft claims rise, the pot needs to be bigger. Here’s the direct cause-and-effect chain:

1. More Thefts Occur: As shown by ONS data, vehicle crime is on an upward trend.
2. Insurers Pay More Claims: The ABI confirms record-breaking payouts for theft. These payouts cover not just the value of the stolen vehicle but also the cost of repairs from attempted theft and theft of parts.
3. Risk Assessment Changes: Insurers use vast amounts of data to calculate the probability of a claim. When theft rates for a specific car model or in a particular postcode increase, the perceived risk for anyone owning that car or living in that area goes up.
4. Premiums for Everyone Increase: To ensure the "pool" of money is sufficient to cover these higher, more frequent claims, insurers must raise the base level of premiums for all customers. Drivers in higher-risk categories see the most significant hikes.

Your personal premium is a tailored price based on your specific risk factors, but it's built upon this general foundation. If the foundation cost rises due to crime, everyone's bill goes up.

Understanding Your Motor Insurance Policy: The Essentials

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. Failing to do so can result in unlimited fines, penalty points, and even disqualification from driving.

Understanding the different levels of cover is crucial, especially in the context of theft.

The Three Main Levels of Car Insurance:

Important Note for Businesses and Fleets: Standard private car insurance is not sufficient for commercial use.

• Business Car Insurance: Needed if you use your car for work purposes beyond commuting (e.g., visiting clients, travelling between sites).
• Van Insurance: A specialist policy for commercial vans, which can include cover for tools and goods in transit.
• Fleet Insurance: For businesses running multiple vehicles (typically 2 or more), a fleet policy simplifies administration and can be more cost-effective. It covers all vehicles and designated drivers under a single policy with one renewal date.

At WeCovr, we provide expert guidance on all types of cover, from private cars to complex commercial fleets, ensuring you meet your legal obligations without overpaying.

Decoding Your Policy Jargon: Premiums, Excess, and No-Claims Bonus

Understanding a few key terms will empower you to make smarter choices about your motor policy.

• Premium: This is the amount you pay for your insurance policy, either annually in a lump sum or in monthly instalments. It is calculated based on dozens of factors, including your age, driving history, address, vehicle type, and the level of cover you choose.
• Excess: The excess is the fixed amount you must contribute towards any claim you make. There are two types:
  • Compulsory Excess: Set by the insurer and non-negotiable. It's often higher for young drivers or high-performance cars.
  • Voluntary Excess: An amount you agree to pay on top of the compulsory excess. Choosing a higher voluntary excess tells the insurer you're willing to take on more of the initial risk, which can significantly lower your premium. However, you must be able to afford to pay this total excess amount if you need to claim.
• No-Claims Bonus (NCB) / No-Claims Discount (NCD): This is one of the most valuable discounts in motor insurance. For every year you drive without making a claim, you earn a discount on your premium, which can reach up to 70% or more after five or more claim-free years. A single fault claim, including a theft claim, can dramatically reduce or completely wipe out your NCB, causing your premiums to rocket at renewal. You can often purchase "NCB Protection" as an optional extra, which allows you to make one or two claims within a set period without losing your discount.

Essential Steps to Protect Your Vehicle and Reduce Your Risk

You are not powerless against car thieves. Taking proactive security measures can drastically reduce the chances of your car being targeted and demonstrates to insurers that you are a lower-risk customer.

1. Physical, Old-School Security (Still Highly Effective!)

Modern thieves rely on speed and silence. Visible, physical deterrents disrupt their methods and make your car a less attractive target.

• Steering Wheel Lock: A high-quality, brightly coloured lock (like a Disklok or Stoplock) is the single best visual deterrent. It tells a thief that stealing your car will be noisy, difficult, and time-consuming.
• Faraday Pouch or Box: This is essential for all owners of cars with keyless entry. These signal-blocking containers prevent thieves from capturing your key's signal. Keep your keys in one at all times when at home. They are inexpensive and incredibly effective.
• Driveway Security Post: A lockable, telescopic security bollard installed on your driveway physically blocks the exit path for a vehicle. It's a significant deterrent for thieves targeting homes.
• Wheel Clamp: While more common for caravans and motorhomes, a robust wheel clamp is another strong visual deterrent for cars left parked for extended periods.

2. Electronic & Technical Security

• Thatcham-Approved Alarms & Immobilisers: Most modern cars come with factory-fitted Thatcham-approved security. However, if you own an older or classic car, installing an approved system can be a condition of your insurance and may earn you a discount.
• Vehicle Trackers: A GPS tracker is one of the most powerful tools for recovering a stolen vehicle. If your car is stolen, you can provide the tracking company with your police crime reference number, and they will liaise with the police to pinpoint the vehicle's location. Insurers often insist on a tracker (usually a Thatcham Category S5) for high-value vehicles, and installing one voluntarily can lead to significant premium reductions.
• VIN Etching: Etching your Vehicle Identification Number (VIN) onto all the windows makes your car less appealing to "chop shop" thieves, as they would need to replace all the glass.

3. Smart Parking & Situational Awareness

• Location, Location, Location: Where you park your car overnight is a major rating factor for insurers. A locked garage is the most secure, followed by a private driveway. Parking on the street carries the highest risk.
• Choose Well-Lit Areas: When parking away from home, always opt for busy, well-lit areas. Thieves prefer to work in the dark and unseen.
• Use Secure Car Parks: Look for car parks that are part of the 'Park Mark' scheme. This is a police-led initiative that assesses car parks for their safety and security standards.
• Hide Valuables: Never leave anything on display—not even a coat or loose change. This tempts opportunistic thieves to smash a window. For van owners, prominent "No tools left in this van overnight" stickers can be an effective deterrent.

How Security Upgrades Can Lower Your Car Insurance Premiums

Insurers reward proactive risk management. When you get a quote, you will be asked about the security features of your vehicle. By investing in approved security, you can directly influence your premium.

Potential Impact of Security Devices on Your Premium:

Crucial Tip: You must declare any security modifications to your insurer. Not only can it reduce your premium, but failing to mention them could cause issues if you need to make a claim. The experts at WeCovr can help you find the best car insurance provider that offers the most generous discounts for the security measures you've taken.

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

Discovering your vehicle has been stolen is a deeply stressful experience. Acting quickly and methodically is key.

1. Call the Police Immediately: Dial 999 or 101. You will need to provide your car's registration number, make, model, colour, and its last known location. You will be given a Crime Reference Number (CRN). This is essential for your insurance claim.
2. Contact Your Insurer: Call your insurance company's 24-hour claims line as soon as possible. You will need to provide the CRN. They will open a claim file and explain the next steps.
3. Inform the DVLA: You must tell the DVLA your vehicle has been stolen. You can be fined if you don't. Your insurer may handle this, but it's your responsibility to check.
4. Contact Your Finance Company: If your car is on a lease or finance agreement, you must inform the finance company straight away, as they are the legal owner.

The Claims Process: Your insurer will investigate the theft. They will usually wait for a period (e.g., 2-4 weeks) to see if the police recover the vehicle. If it's not found, they will declare it a total loss and process a payout. The payment will be based on the car's market value at the time of the theft—i.e., the cost of buying a like-for-like replacement. This settlement will be paid to the finance company first if there is outstanding finance.

Finding the Right Cover and Value with WeCovr

Navigating the complexities of the motor insurance UK market can be daunting, especially with the threat of crime looming large. This is where an expert broker like WeCovr provides invaluable support.

As an independent, FCA-authorised broker, we are not tied to any single insurer. Our goal is to find you the best possible cover for your needs at the most competitive price.

• Expertise: We understand the market and know which insurers offer the best rates for your specific vehicle and postcode, and which ones reward security upgrades most generously.
• Comparison: We compare policies from a wide panel of leading UK insurers, saving you the time and hassle of getting quotes from multiple websites.
• Personalised Service: Whether you need cover for a private car, a commercial van, or an entire business fleet, our team provides tailored advice at no cost to you. Our high customer satisfaction ratings reflect our commitment to service.
• Extra Value: Customers who purchase motor insurance through WeCovr can also benefit from exclusive discounts on our other insurance products, such as home or life cover.

The fight against car crime requires a joint effort. By taking the right security measures, you protect your vehicle and contribute to a safer environment for all drivers. And by choosing the right insurance partner, you ensure you're not paying a penny more than you need to.

Don't let car crime dictate what you pay. Take control of your risk and your premiums.

Contact WeCovr today for a free, no-obligation quote and see how much you could save on your car, van, or fleet insurance.