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Auto insurance companies consider many factors when giving a quote to a driver. Some information makes perfect sense, such as the driver’s ticket or accident history, while other information seems irrelevant, such as marital status or his credit score. But in fact, there are statistics that show that these factors can predict a driver’s likelihood of getting into an accident.
The insurer also looks at where the driver resides and the likelihood of accidents, natural disasters, and car theft in that area. In one final case, the following 10 cities top the list of carjacking-prone cities:
These 10 cities have the highest number of car thefts each year
According to the Insurance Information Institute, the following 10 cities have the highest auto theft rates in the country.
- bakersfield, california
- Yuba City, California
- Denver, Colorado – Aurora – Lakewood
- Odessa, Texas
- San Francisco – Oakland – Berkeley, CA
- Albuquerque, New Mexico
- Pueblo, Colorado
- billings, montana
- St. Joseph, Missouri/Kansas
- Tulsa, Oklahoma
To be clear, these cities are not necessarily the cities with the highest number of auto thefts overall. For example, in St. Joseph, only 692 cars were stolen in 2020. However, the car theft rate for all vehicles in the region is very high.
Why insurance companies care
Living in a car theft-prone area may not be as much of a concern to auto insurance companies as a history of drunk driving or speeding.
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If the risk of a vehicle being stolen is high, so is the risk that the insurance company will have to pay the policyholder to replace the stolen vehicle. This allows insurance companies to increase premiums. But it depends on the coverage the driver wants.
Liability insurance, which most states require drivers to carry, does not protect the policyholder’s own vehicle. It is designed to compensate for damage to other people and property in the event of an accident by the policyholder. So if a driver has the minimum state coverage, the auto insurance company won’t have to pay his dime if someone steals the driver’s car.
This is a fairly large gap in coverage, which is why many people opt for full coverage car insurance. This adds to his two key protections: Collision and Containment. Collision compensation is paid to repair the driver’s own vehicle after an accident, even if the accident was the driver’s fault. Comprehensive coverage covers losses due to inclement weather, animal and vehicle collisions, vandalism and theft.
Drivers living in areas with high auto theft rates can expect to pay more for comprehensive coverage, but other protections may not be affected.
How drivers keep costs down
All drivers should get new car insurance at least once a year and see if they can find a better rate elsewhere. Get quotes from several providers and compare their coverage, rates, and customer service side by side to see which offers the best deal.
In addition, drivers may save money by storing their cars in garages instead of on the road or by installing some sort of anti-theft device. However, not all insurance companies offer discounts for this. Drivers who want to be rewarded for taking these safety measures should look for companies that offer these discounts.
Increasing the blanket deductible on your insurance is another option. This increases the amount a driver must pay when making a car theft claim. However, it does reduce the driver’s monthly insurance premium. As long as the driver holds enough emergency funds to cover the deductible, they will not run into financial trouble when they need to file a claim.
Even in cities with high car theft rates, there are still many drivers who have never experienced it. But drivers who don’t want to buy a new car for themselves should consider adding comprehensive coverage to their car insurance, even if it costs a little more each month.
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