According to the National Insurance Crime Bureau's (NICB) annual “Hot Wheels” report, 1.2 million motor vehicles were stolen in 2006, meaning one vehicle was stolen every 26.4 seconds.
While those figures indicate a 3.5 percent drop from last year's numbers — and the third annual decrease in a row — it still adds up to some big losses for insurance companies. The NICB's report stated that if each vehicle loss is estimated at $6,649, vehicle-value amounts could be as high as $8 billion alone.
As it did in 2005, California's vehicle theft rate ranked highest in the nation. In fact, it downright dominated the other 49 states. For instance, California reported more than 242,000 stolen cars last year. The next three top-ranking states — Texas, Florida, and Arizona — combined for a total of 226,000 stolen cars between them. But times could be changing for the Golden State; its car thefts dropped by almost six percent when compared to 2005's figures.
“The decrease in vehicle thefts is certainly welcome news to law enforcement, the insurance industry, and vehicle owners nationwide,” said Robert M. Bryant, NICB's president and CEO, in a release. “At NICB, we have been providing the latest technology in auto-theft detection and recovery equipment to law-enforcement agencies from California to Florida.”
The NICB also examined several fraud schemes it says contributes to the high rates of theft, especially in those states on the border of Canada and Mexico. It identified exporting cars to other countries, owner give-ups in which a false theft report is made to collect insurance proceeds, and chop shops as major trends contributing to the problem.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
