Insurance premiums reflect theft decrease

You may notice a welcome bit of financial relief on your insurance bill; premiums for comprehensive insurance have dropped as a result of a lower rate of auto theft. Data from the Federal Bureau of Investigation's (FBI) shows that there has been a decrease in the number of motor vehicle thefts for 2007. In conjunction with this, insurance-holders may find that their premium has gone down.

Auto theft is covered under the comprehensive section of an auto insurance policy. Theft coverage applies to the loss of the vehicles as well as parts of the car such as air bags. Comprehensive coverage, which is not mandatory, also pays for fire, vandalism and weather-related damage including damage from flooding and earthquakes.

Premium rates for comprehensive insurance are affected by the risk of loss, meaning the likelihood that an insured car will be stolen or damaged and the car's value at the time of the loss. The dollar size of claims has been going up, reflecting the higher value of new cars on the road, the value of the cars that are targets for theft or are damaged and the cost of vehicle bodywork. Vehicle bodywork costs include replacing stolen components. Nationally, more than 75,000 airbags are stolen every year.

According to the Federal Bureau of Investigation, the number of U.S. motor vehicle thefts decreased by 8.1 percent from 2006 to 2007, the fourth consecutive annual decrease. In 2007 the value of stolen motor vehicles was $7.4 billion. The average value of a motor vehicle reported stolen in 2007 was $6,755.

Some key statistics

• 2007 theft statistics: According to the FBI's Uniform Crime Reports, a motor vehicle is stolen in the United States every 28.8 seconds. The odds of a vehicle being stolen were 1 in 210 in 2006 (latest data available based on registrations from the Federal Highway Administration, thefts from the FBI and calculated by the Insurance Information Institute). The odds are highest in urban areas.

• U.S. motor vehicle thefts fell 8.1 percent in 2007 from 2006, according to the FBI's Uniform Crime Reports. In 2007, 1,095,769 motor vehicles were reported stolen.

• In 2007 the southern states accounted for the largest share of thefts-36.4 percent, followed by the West, 35.7 percent. The Midwest accounted for 18.2 percent of thefts and the Northeast for 9.8 percent.

• Nationwide the 2007 motor vehicle theft rate per 100,000 people was 363.3, down 8.8 percent from 398.4 in 2006. The highest rate was reported in the West, 557.4, down 11.8 percent from 632.1 in 2006. The rate of motor vehicles stolen was 360.9 in the South, down 4.6 percent from 2006; 300.4 in the Midwest, down 9.7 percent; and 195.7 in the Northeast, down 11.9 percent.

• Only 12.6 percent of thefts were cleared, either by arrests or by exceptional means, in 2007.

• Carjackings occur most frequently in urban areas. They accounted for only 3.0 percent of all motor vehicle thefts, based on Department of Justice data from 1993 to 2002 (latest available).

• The average comprehensive insurance premium in the U.S. fell 3.3 percent from $145.16 in 2005 to $140.38 in 2006 (the most recent data available), according to the National Association of Insurance Commissioners.

Other recent developments

• A survey conducted in April 2007 on behalf of the National Insurance Crime Bureau (NICB, https://www.nicb.org ) and LoJack, a manufacturer of an electronic vehicle tracking and recovery system, found that almost four out of five Americans (79 percent) always lock their vehicles and that nine out of ten (93 percent) never leave spare keys in their vehicle. However, a third admit they have left their car while it was running, which makes the vehicle an easy target for theft. The survey also found that 47 percent of Americans don't always park in a well-lit area and 40 percent don't hide their valuables. In fact, nearly half leave mail in their vehicle, a quarter have left a purse or wallet, and almost a third have left bank statements, all of which can put them at risk for identity theft. The survey was conducted by Opinion Research Corporation.

• Thefts by model: The NICB says that the 1995 Honda Civic was the most stolen vehicle in 2007, the same as in 2006. The 2007 report confirms that theft of older vehicles has remained constant for the past several years. Eight of the vehicles on the top 10 list are 10 or more model years old.

These cars have been consistent top sellers for many years and some of their parts are interchangeable. Thieves dismantle them for their components. The NICB compiles its list using National Crime Information Center data, which is based on police reports.

TOP 10 MOST FREQUENTLY STOLEN PASSENGER VEHICLES, 2007
Rank Year, make, model

1. 1995 Honda Civic
2. 1991 Honda Accord
3. 1989 Toyota Camry
4. 1997 Ford F-150 Series Pickup
5. 1994 Chevrolet C/K 1500 Pickup
6. 1994 Acura Integra
7. 2004 Dodge Ram Pickup
8. 1994 Nissan Sentra
9. 1988 Toyota Pickup
10. 2007 Toyota Corolla

Source: National Insurance Crime Bureau.