Immobilizing Antitheft Devices

Losses decline by 50% when cars are equipped with immobilizing antitheft devices

Now that a number of auto manufacturers are installing passive immobilizing antitheft devices in passenger vehicles, thefts of these vehicles are being reduced (an immobilizing device keeps a vehicle from being driven). This is reflected in overall insurance losses for vehicle theft, which have been reduced an average of about 50 percent for vehicles with antitheft devices.

The Nissan Maxima provides an example: 1998 models, without factory-installed antitheft devices, had overall theft losses more than seven times the average for all cars, but after standard immobilizing antitheft devices were introduced in 1999s theft losses for the Maxima declined dramatically. These are recent findings from the Highway Loss Data Institute, an affiliate of the Insurance Institute for Highway Safety.

"While the improvement in the Maxima's overall theft loss result is the largest we've seen, it follows a pattern we've observed in the past when General Motors, BMW, and Ford added passive immobilizing antitheft devices as standard equipment," says HLDI senior vice president Kim Hazelbaker.

For hundreds of popular passenger vehicles, the Highway Loss Data Institute computes overall insurance theft loss results (referred to as average loss payments per insured vehicle year), which reflect theft claim frequencies and average insurance payments per claim. Frequencies include both thefts of whole vehicles and thefts of vehicle parts like radios. "Factory-installed antitheft devices are beneficial because they reduce thefts of whole vehicles," Hazelbaker points out. The effects of these devices aren't consistent for all cars, in part because some vehicles are more likely to be targeted by professional thieves, some of whom are able to defeat even the best antitheft devices. Still, factory-installed antitheft devices do a good job of reducing overall theft losses."

Effect of passive immobilizing antitheft devices on theft losses

Vehicle Body size and type Model year Standard factory-installed immobilizing antitheft device Number of claims Claim frequency per 1,000 vehicle years Average loss payment per claim Average loss payment per insured vehicle year.

Vehicle	Body size and type	Model year	Standard factory installed immobilizing antitheft device	Number of claims	Claim frequency per 1,000 vehicle years	Average loss payment per claim	Average loss payment per insured vehicle year
Nissan Maxima	Midsize car	1999	yes	112	3.0	$5,429	$16
		1998	no	770	7.8	$14,148	$110
Ford Ranger 4WD	Small pickup	1999	yes	79	2.0	$3,784	$7
		1998	no	137	2.0	$5,836	$12
Ford F-150	Large pickup	1999	yes	198	2.3	$4,278	$10
		1998	no	786	3.3	$7,722	$25
Ford F-150 4WD	Large pickup	1999	yes	88	2.1	$2,852	$6
		1998	no	234	2.2	$6,956	$15
Chevrolet Venture	Large passenger van	1999	yes	18	0.7	$3,674	$3
		1998	no	56	0.8	$4,598	$4
All passenger cars		1999			2.2	$5,484	$12
		1998			2.5	$5,895	$15

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