In the 2022/2023 financial year, more than 130,000 vehicles were stolen in England and Wales.
Though a significant decrease compared to the 307,000 vehicles stolen in 2002/2003, vehicle theft still contributes to immense financial losses for businesses and car owners across the UK.
Apart from dealing with the initial shock of falling victim to vehicle theft, owners also have to face additional challenges and inconveniences. They are confronted with travelling and operation interruptions, high vehicle replacement costs, and the loss of personal items.
Vehicle owners may also find their insurance policies do not provide sufficient coverage and may need to budget for increased insurance premiums.
In this article, we will discuss vehicle theft and its cost implications. We also look at how to check that your vehicle insurance provides sufficient theft coverage and how insurance-approved vehicle trackers can boost your vehicle’s security and prevent theft.
The Immediate Costs
Vehicle owners deal with many immediate challenges and costs when their cars are stolen.
Buying a vehicle is a significant financial investment. And if that vehicle is stolen, the costs of buying another vehicle can eat an even bigger hole in your pocket. Depending on the make and model of your vehicle and whether you have specialised equipment installed, this can significantly increase the replacement costs.
Many vehicle owners may also have to rent a car or use public transport while waiting for their replacement vehicle, further increasing the overall expenses.
Additionally, those who have bought their cars using a lease or bank loan will, unfortunately, have to continue with the repayments even though they do not have the vehicle anymore.
Limitations of third-party insurance
When purchasing a new vehicle, many buyers acquire third-party insurance.
Though practical, this type of insurance does have its limitations and typically only covers damage to third-party property or injuries other people sustained in car accidents. This means that third-party insurance does not cover damage or theft of a policyholder’s vehicle. You can, however, ensure that vehicle theft is covered by opting for an additional add-on to your policy.
Therefore, policyholders must scrutinise their insurance policies and know what they are covered for. Discuss potential limitations with your insurance company and ensure you take out additional cover where necessary.
Also, ensure that your policy covers the theft of personal belongings to help limit your losses when a laptop or cell phone is stolen from your vehicle.
Hidden Costs
Vehicle theft is not only about the immediate loss of the vehicle but also involves several hidden costs that can impact vehicle owners financially over the long term. Some of these hidden costs that vehicle owners need to be aware of include:
Insurance Premium Increases
After a vehicle theft claim, many insurance companies often raise their monthly premiums for the policyholder. This increase is a direct consequence of the perceived higher risk associated with insuring the vehicle or driver post-theft. These raised premiums can significantly add to the financial burden over time, making insurance more expensive. Vehicle owners should proactively discuss their policy details with insurers to understand the potential impact of theft claims on their premiums.
Loss of Personal Items
The theft of a vehicle often leads to the loss of personal belongings that were inside the car, such as laptops, smartphones, and other valuable electronic devices. The cost of replacing these items can be substantial, especially if they are not specifically covered by insurance. This loss extends beyond the financial; it can also involve the loss of irreplaceable personal data and a breach of personal security. Vehicle owners are advised to regularly remove valuable items from their cars or ensure they have adequate insurance coverage for personal belongings.
Vehicle Recovery and Storage Fees
If a stolen vehicle is recovered, there are usually costs associated with its recovery and storage. Additionally, if the vehicle has sustained damage during the theft, owners may face significant repair costs. These expenses can be a heavy financial burden, especially if not covered by insurance. It’s important for vehicle owners to be aware of these potential costs and consider them when choosing an insurance policy.
Introducing: Insurance-Approved Vehicle Trackers
A very effective way to improve vehicle security is by installing insurance-approved trackers.
An insurance-approved vehicle tracking device offers the following benefits:
- Deters theft: Most vehicle thieves avoid vehicles that have trackers installed.
- Helps track and recover stolen vehicles: Insurance-approved car trackers use GPS technology to track vehicles in real time. When a car is illegally accessed and stolen, authorities use the tracking device to locate and quickly recover the stolen vehicle.
- Reduces insurance premiums: Insurance providers often offer reduced insurance policy premiums if policyholders install approved trackers in their vehicles.
- Offers 24/7 vehicle monitoring: Many UK tracker companies monitor your vehicle on a 24/7 basis and immediately respond if the vehicle is tampered with or stolen.
- Driver ID tags: Many insurance-approved car trackers use a driver identification tag to prevent unauthorised vehicle access and operation.
- Remote immobilisation: Car tracking devices often feature remote immobilisation. This allows vehicle owners and fleet managers to immobilise their vehicles remotely.
- Geofencing capabilities: Fleet managers can use vehicle tracking systems to create virtual boundaries around specific service areas to avoid unauthorised trips.
Thatcham insurance-approved trackers adhere to the strictest industry standards. At Crystal Ball, we offer three Thatcham tracker systems to suit a variety of needs. These include:
Thatcham S7 Tracker
Thatcham S7 trackers are perfect for camper vans.
This insurance-approved vehicle tracker is discreetly installed and offers top-of-the-range features, including:
- 24/7 monitoring
- Real-time location tracking using GPS and GSM technology
- Tow and tamper alerts to immediately notify vehicle owners if a vehicle is accessed or driven without permission
Thatcham S5 Tracker
This affordable S5 insurance-approved tracker has the following features:
- 24/7 monitoring to ensure a quick reaction if the vehicle is tampered with or stolen
- GPS tracking to ensure real-time location data tracking and faster recovery
- Its automatic driver recognition functionality uses a Driver ID system to prevent unauthorised vehicle access and use
- Sends theft alerts and notifications when a vehicle is stolen or towed
- Offers fleet managers access to a secure web portal and mobile app to monitor and track their fleet vehicles
Thatcham S5 Plus Tracker
This top-of-the-range Thatcham S5 Plus car tracker is perfect for high-value vehicles. Offering the same features as the Thatcham S5 range, these trackers also boast:
- Immediate immobilisation when the automatic driver recognition card is not present in the vehicle
- Key protection to prevent unauthorised vehicle operation
Conclusion
Vehicle theft leads to millions of pounds in financial losses across the UK yearly.
Besides the emotional distress and loss of mobility, vehicle owners also have to face a range of financial challenges when their vehicles are stolen, such as potential insurance coverage gaps. There are also hidden costs, including increases in insurance instalments, the loss of valuables, and vehicle recovery and storage fees.
Installing insurance-approved trackers, like Crystal Ball’s Thatcham trackers, can help mitigate these costs. These trackers improve vehicle security and help with the easier tracking and quicker recovery of stolen vehicles.
Contact Crystal Ball for more information on how our insurance-approved trackers can keep your vehicles safe from unauthorised access and theft.