Car Theft Victims Receiving Payout Every Eight Minutes, Insurers Pay Out £1.2 Million a Day

Car theft is a growing issue that is costing insurers millions of pounds every year. According to new data from the Association of British Insurers, car theft victims are receiving payouts every eight minutes, totaling around £108 million in the first three months of the year. This is a significant increase from the same period in 2018, with insurers attributing the rise to the expensive technology used in newer cars.

Keyless cars, in particular, have become a target for tech-savvy criminals who can gain access in as little as 20 seconds. The Home Office reported a 50% increase in vehicle thefts over the last five years, highlighting the need for car companies to improve security measures.

In response to the rising number of claims, insurers are calling for car security to keep pace with the ingenuity of car criminals. The cost of repairs for both policyholders and third parties has also increased, with the ABI reporting a record-high quarterly figure of £1.2 billion. This is due to higher costs for parts and technology, such as a 400% increase in the cost of a headlight for newer models of popular cars like the Volkswagen Golf GTI.

Despite the rising costs associated with car theft and repairs, the average price paid for motor insurance is at a two-year low of £466. Insurers attribute this to passing on cost benefits from new legislation and new car purchases typically made by older, lower-risk drivers.

It is clear that car theft is a serious issue that requires attention from both car manufacturers and insurers. As technology continues to advance, it is crucial that security measures keep up to protect consumers and their vehicles. In the meantime, it is important for car owners to take precautions to prevent theft, such as parking in well-lit areas and investing in additional security measures.