How Theft Risk Affects Your car Insurance Premium

Theft risk is one of the determining factors that every car insurance company takes into consideration when you buy insurance coverage. Let’s find out!


According to recent research in the United States, the average price of a new car is over $36,000, and almost 700,000 cars are stolen each year. These figures show that the cost of car theft is no wonder big trouble for car insurance companies. If you want to buy comprehensive coverage for your automobile (compensation for non-traffic incidents like fallen trees, fires, etc.), theft rates can have a huge influence on the vehicle insurance premium. Let’s take a more specific look at its impact on the rates below.

The theft risk is based on where you live

The risk of having your car stolen depends tremendously on where you live. In some metropolitan areas like California and Bakersfield, the theft rate is almost twice as the national average. That’s why if you live there, the car insurance for your car is much higher than in other states. Generally, in the areas of high crime rates, the comprehensive coverage charge is about several hundred dollars or more.

Car models also play a part

Just imagine you are a thief, would you steal the Dodge Caliber or the Audi Q7 parked on the road at night? Of course, every car thief knows how to compare their price. According to some statistics, some car models are more likely to be stolen including Honda Civic, Honda Accord and Toyota Camry. The main reason behind this is the high demand for the parts of those vehicles. It might be surprising that the total profit from selling individual parts even exceeds the value of a complete car. What’s more, the famous luxury car makes are also the target of auto thieves. Those cars with exotic design and limited in quantity are often shipped to other countries for sale. As theft risk varies differently among car brands, the comprehensive premium for them is not the same too. Anyway, whatever your car make is, be careful with the crime!

What you should do to protect your car

The easier your auto is to be stolen, the higher chance that thieves will target your car.  The two main fundamentals of protecting your vehicle are to make it less attractive to thief and alarming/tracking system. When you carry out some actions to protect your car, there are chances that you will get discount from car insurance agent.  Here are some specific tips that you should try:

  • Lock your car: The very first step is basic to do. Just lock the automobile, close the windows and sunroof. Even if your car is a theft target, it will take more time to break into a locked car. Some statistics suggest that 50% of stolen cars were not locked at the incident time. Most of them even had the key in the ignition. No thief would miss that great opportunity. 
  • Garage parking vs Street parking:  No wonder street parking is so risky especially in high crime rate areas. Many insurance companies provide a substantial discount for car owners who park their vehicles in garage or secure places. All you need to do is to make sure that the  car insurance agent knows that you follow safety parking rules so that they can give you credit. 
  • Park your car in well-lit areas: Probably some of you may not have access to safe parking, so it is necessary to find a proper area to place your automobile. A bright area with high population density is a good idea. It will reduce the risk of your car stolen because the thief might be easily noticed when taking crime. 
  • Vehicle alarm: It is such an effective method to protect your car from those skillful thieves. Even when the car lock or windows lock is broken, the alarming is still there to save you by seeking the help from nearby people with a loud noise; disabling the vehicle or at least, creating audible sounds that frighten the thieves to run away. 
  • Vehicle tracking system: This method is suitable for vehicles owners who live in areas with high crime rates and low population density. When the alarming device is useless as no one was there, it is time for the tracking device to show off with GPS system. Those vehicles with GPS device installed often have higher chances of recovery, so we highly recommend you to try this. Interestingly, some people even put stickers on their automobile to warn the thief about the alarm or tracking system, which prevents their vehicles from being the potential target. 

Good news for you, many  car insurance agents provide a premium discount for car owners who install alarming/tracking system on their automobile so don’t miss it!

Register for the “Watch your car ” program: It is a corporation between the States and the Federal Government to protect car owners. When you join the program, a decel is stuck onto your vehicle. If the police see your car running from 1 a.m to 5 a.m, they can stop the vehicle to check out if it is the rightful owner. Of course, some insurers give a discount if you take part in this program, so don’t hesitate to sign up.

Are there any chances for vehicle recovery?

Absolutely yes. The average recovery rate in the US is reported to be about 46%. But it varies in different regions. To increase the chance of vehicle recovery, it is vital to install some tracking device on your car and notify car theft with the law enforcement as soon as possible to avoid the worst scenario.


Generally, the theft risk is undeniably an important factor that impacts the comprehensive premium that you need to pay. After you read this article, I hope that you will be able to properly optimize the  car insurance charge to get the most discount rate from insurers as well as effectively protect your car from vehicle crimes. Good luck!

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