UK Keyless Theft Your Insurance at Risk

As the UK's keyless car theft crisis deepens, securing the right motor insurance is paramount. At WeCovr, an FCA-authorised expert broker that has helped arrange over 800,000 policies, we provide specialist guidance to protect your vehicle, whether it's a private car, a commercial van, or an entire fleet.

Shock New Data Reveals Keyless Car Thefts Now Account for Over 60% of All Vehicle Thefts in the UK, Fueling a Staggering £300 Million in Annual Insurance Payouts – Is Your Security Keeping Pace with Sophisticated Criminals, and Is Your Policy Protecting Your Investment

The convenience of keyless entry has become a standard feature in modern vehicles, but it has also opened the door to a new, silent, and incredibly effective form of crime. Organised criminal gangs are now exploiting this technology at an unprecedented rate, leaving a trail of stolen vehicles and frustrated owners.

According to the latest 2025 figures from the Association of British Insurers (ABI), thefts of vehicles equipped with keyless technology now represent more than three out of every five stolen cars. This surge has driven insurance payouts for theft to over £300 million annually, a cost that is inevitably passed on to every motorist through higher premiums.

The question is no longer if your vehicle is at risk, but how well you are protected. This guide will explore the mechanics of keyless theft, the impact on your insurance, and the essential steps you must take to safeguard your investment and ensure you have the best car insurance provider for your needs.

The Rise of the 'Relay Attack': How Criminals Steal Your Car in Seconds

The primary method used by criminals is known as a 'relay attack'. It is shockingly simple, requires relatively inexpensive electronic gadgets purchased online, and can be executed in less than a minute. It is the digital equivalent of lock-picking, but faster and without leaving a scratch.

Here’s how it works:

1. The Scout: One criminal, holding a relay amplifier device, stands near your home's front door, windows, or even a jacket pocket in a café. This device is designed to detect and amplify the weak, passive signal that your car key constantly emits.
2. The Relay: The captured and amplified signal is transmitted wirelessly to a second device, a relay transmitter, held by an accomplice standing right next to your car.
3. The Deception: The transmitter 'tricks' your car's onboard computer into believing the genuine key is present. The car's security system detects this valid, albeit relayed, signal and unlocks the doors.
4. The Getaway: Once inside, the criminal can usually start the engine with the press of a button, just as you would. They can then drive the car away. A common misconception is that the car will cut out once it's out of range of the relay. This is false. Once started, the engine will continue to run until it is turned off or runs out of fuel, by which time it could be miles away in a shipping container or a clandestine 'chop shop'.

This method is silent, leaves no signs of forced entry, and is alarmingly effective. Criminals can perform it in the dead of night while you are asleep, completely unaware.

Why Are So Many Modern Cars Vulnerable?

The vulnerability lies in the 'always-on' nature of many keyless fobs. They continuously emit a low-level signal, waiting for the car to request it. While manufacturers are now introducing countermeasures, such as motion sensors in fobs that put them to sleep when inactive for a few minutes, millions of vehicles on UK roads remain susceptible. Even some newer fobs can be "woken up" by a sophisticated thief.

The Startling Statistics: A Deep Dive into the UK's Car Crime Epidemic

The data paints a grim picture of the scale of this issue. Analysis from the Office for National Statistics (ONS) and the ABI confirms that vehicle theft is on a sharp upward trend after years of decline, driven almost entirely by keyless methods.

These figures don't just represent statistics; they represent immense personal disruption, stress, and financial loss. The £300 million paid out by insurers is a collective cost shared by all policyholders. As claims rise, so do the underlying costs for insurers, which directly translates into higher annual premiums for everyone, regardless of whether you have made a claim. For fleet managers, the loss of a single van can mean cancelled jobs, lost revenue, and significant operational headaches.

Is Your Car a Target? The Most Stolen Vehicles in the UK

While any keyless car is a potential target, criminals disproportionately target high-value and popular models. This is driven by demand, both for resale abroad and for the lucrative 'chop shop' market, where stolen cars are dismantled for their parts. An entire industry exists around stolen parts, which are then sold to unsuspecting buyers.

According to DVLA theft data and police reports, the following models consistently feature in the top ten most stolen vehicles:

If you own one of these vehicles, you must be extra vigilant. Insurers are acutely aware of this risk and may apply higher premiums or mandate additional security measures for these models. Finding a suitable motor policy can be challenging, but an expert broker like WeCovr can navigate these complexities for you.

Fortifying Your Defences: Practical Steps to Prevent Keyless Theft

The good news is that you are not powerless. A multi-layered security approach, combining physical deterrents with electronic protection, is the most effective strategy. Think of it as creating as many obstacles as possible to make your car an unattractive target.

Essential At-Home Security

• Faraday Pouch or Box: This is the single most important and affordable defence. A Faraday pouch is a small, signal-blocking wallet lined with special material. When you place your key fob inside and seal it, it blocks any incoming or outgoing radio signals, making a relay attack impossible. Always store both your main key and your spare key in one. Test it by placing the key in the pouch and walking up to your car; it shouldn't open.
• Steering Wheel Lock: A classic, visible deterrent. A high-quality, brightly coloured steering lock (like a Disklok) makes your car a much less attractive target. Criminals are opportunists; they will often move on to an easier target rather than spend time and make noise trying to cut through a heavy-duty lock.
• Driveway Security Posts: A lockable, retractable security post installed at the end of your driveway physically blocks the car from being moved. It's a significant deterrent, especially for high-value vehicles parked overnight.
• CCTV and Security Lighting: Well-placed cameras and motion-activated lights can deter criminals and provide valuable evidence if a theft does occur. Modern systems can send alerts directly to your phone.

Advanced Technological Solutions

• Aftermarket Immobilisers: A Thatcham-approved aftermarket immobiliser adds another layer of security. These systems can require a unique code to be entered on the dashboard, or a separate tag to be present, before the engine will start. This means that even if thieves perform a relay attack and get inside, they still cannot drive the car away.
• GPS Tracking Devices: A professionally installed, monitored GPS tracker is one of the best ways to ensure your vehicle is recovered if stolen. Insurers often offer significant premium discounts for vehicles fitted with a Thatcham-approved S5 or S7 tracker. For many high-risk models, insurers will make this a mandatory requirement for providing theft cover. The S5 system includes automatic driver recognition tags, alerting a control centre immediately if the car is moved without a tag present.

By taking these steps, you not only reduce the risk of theft but also demonstrate to insurers that you are a responsible owner, which can positively impact your motor insurance UK premium.

Understanding Your Motor Insurance: Is Your Policy Fit for Purpose?

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. However, the minimum legal cover offers no protection against theft. Understanding what your policy covers is critical.

The Three Main Levels of Cover

Your choice of cover directly impacts whether you are protected against theft.

• Third-Party Only (TPO): This is the minimum legal requirement. It covers liability for injury to others (e.g., pedestrians, other drivers) and damage to their property (e.g., their car, a wall). It does not cover the theft of your own car. If your car is stolen and you only have TPO cover, you will bear the entire financial loss yourself.
• Third-Party, Fire & Theft (TPFT): This includes all the cover of TPO, but adds protection if your car is stolen or damaged by fire. This is the minimum level of cover you should consider if you are concerned about theft.
• 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 it was your fault. Surprisingly, Comprehensive cover can sometimes be cheaper than TPFT, as insurers' data suggests that drivers who opt for lower cover can sometimes be a higher risk. Always compare quotes for both.

Business and Fleet Insurance Obligations

For business owners, a standard private car policy is insufficient. You need business car insurance or, for multiple vehicles, fleet insurance. These policies are designed to cover vehicles used for commercial purposes. As an employer, you have a duty of care to ensure your vehicles are properly insured and secure. A keyless theft from your fleet not only impacts your bottom line but can also affect your business's reputation and ability to operate.

How a Theft Claim Impacts Your Insurance

Having your car stolen is distressing enough without the added worry of the insurance process. Here’s what you can expect if you need to make a claim for theft under your car insurance policy.

1. Report to the Police: Your first action must be to report the theft to the police and get a crime reference number. Your insurer will not process your claim without one. Do this immediately.
2. Contact Your Insurer: Inform your insurance company as soon as possible. They will open a claim file and ask you to provide details of the incident, the vehicle, any security measures, and the crime reference number. You may need to provide documents like the V5C logbook and proof of purchase.
3. The Waiting Period: Insurers typically have a waiting period (e.g., 28 days) after the theft is reported before they will settle the claim. This is to allow time for the police to potentially recover the vehicle.
4. Settlement Offer: If the vehicle is not recovered, the insurer will offer you a settlement. This is based on the market value of the car at the moment it was stolen, not what you originally paid for it or what a new one would cost. This value is determined by industry guides like Glass's Guide and market data.
5. The Excess: Your settlement will have the policy excess deducted from it. The excess is the pre-agreed amount you contribute towards any claim. It's made up of a compulsory excess set by the insurer and a voluntary excess you chose to lower your premium. For example, if your car's market value is £15,000 and your total excess is £500, your final payout will be £14,500.

The Long-Term Consequences of a Claim

• Loss of No-Claims Bonus (NCB): A theft claim is treated as a 'fault' claim for NCB purposes, as there is no third party to recover costs from. Unless you have purchased NCB Protection as an optional extra on your vehicle cover, you will typically lose two or more years from your bonus. This can lead to a significant premium increase at renewal, often costing more over a few years than the protection would have.
• Increased Future Premiums: Having a theft claim on your record will almost certainly increase your premiums for the next three to five years. You are now seen as a higher risk, both due to the claim itself and potentially your location or vehicle type.

What About Optional Extras?

• Courtesy Car: Standard courtesy car cover usually only applies when your vehicle is being repaired at an approved garage following an accident. It often does not apply for theft claims where the vehicle is a total loss. Check your policy wording carefully; some insurers offer an enhanced 'hire car' add-on that does provide a vehicle for a set period following a theft.
• Legal Expenses Cover: This add-on can help recover uninsured losses, though it is more commonly used after an accident rather than a theft.

WeCovr: Your Partner in Securing the Right Motor Insurance UK Policy

The motor insurance market is more complex than ever. Premiums are influenced by dozens of factors, and the threat of keyless theft has added another layer of complexity. Trying to find the best car insurance provider on your own can be a daunting and time-consuming challenge.

This is where an independent, FCA-authorised broker like WeCovr provides immense value.

• Expertise: We understand the nuances of the market and how insurers view risks like keyless theft. We know which insurers offer discounts for specific security devices and which policies provide the most suitable cover for high-risk vehicles. Our team stays current on the latest trends and legal requirements.
• Comparison: We compare policies from a broad panel of UK insurers, saving you the time and effort of gathering quotes yourself. Our goal is to find you a motor policy that is not just cheap, but offers the right protection for your specific needs, whether for a private car, a commercial van, or a large fleet.
• Personal and Business: Whether you need a policy for your personal car, a van for your trade, or comprehensive fleet insurance for your business, our specialists can provide tailored advice. We pride ourselves on high customer satisfaction ratings, achieved by putting our clients' needs first.
• Cost-Effective: Our brokerage service comes at no cost to you. We earn a commission from the insurer you choose, but our advice remains impartial and focused on your best interests. Furthermore, customers who purchase motor or life insurance through WeCovr may be eligible for discounts on other types of cover, creating even more value.

Frequently Asked Questions (FAQ)

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

Will my car insurance pay out if my car is stolen in a relay attack?

Yes, provided you have the appropriate level of cover (either Third-Party, Fire and Theft or Comprehensive). An insurer will pay out for a keyless theft claim as long as you have taken reasonable care. 'Reasonable care' means you have not been negligent, for example, by leaving the key in the ignition or the doors unlocked. Simply having a keyless car that is stolen via a relay attack is not considered negligence, and your claim will be valid.

Do I have to declare aftermarket security modifications to my insurer?

Absolutely. You must inform your insurer of any modifications to your vehicle, including security upgrades like aftermarket immobilisers or GPS trackers. In most cases, fitting Thatcham-approved security devices will be viewed favourably and may lead to a premium discount. Failure to declare modifications could, in a worst-case scenario, invalidate your policy, meaning the insurer could refuse to pay a claim.

What happens if my stolen car is recovered after my insurance claim has been paid?

If your car is recovered after the insurer has paid your settlement, the car legally becomes the property of the insurance company. They have effectively 'bought' the vehicle from you. They will then deal with its disposal, usually by selling it at auction to recoup their costs. In some rare cases, they may offer you the chance to buy the vehicle back, but this is at their discretion and you would have to return the settlement amount.

Can an insurer refuse to cover my car because of keyless theft risk?

Yes, insurers are entitled to assess risk and can decline to offer cover for certain vehicles in certain postcodes if they believe the risk of theft is unacceptably high. More commonly, for high-risk vehicles like a Range Rover or performance models, they may insist on specific security measures, such as a Thatcham S5 tracker, as a condition of providing cover. This is becoming an increasingly standard practice in the UK motor insurance market.

Don't let your vehicle become another statistic. Protect it with physical security and ensure it's backed by the right insurance policy.

Contact WeCovr today. Let our FCA-authorised experts compare the market to find you the best motor insurance cover at a competitive price. Get your free, no-obligation quote now.