Vehicle Thefts Surpassed 1 Million in 2022
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Vehicle thefts nationwide surpassed 1 million last year. This was a 7% increase over 2021 numbers and the first time thefts reached that total since 2008, according to a new analysis from the National Insurance Crime Bureau (NICB).
“We are seeing vehicle theft numbers that we haven’t seen in nearly 15 years, and there is very little deterrent to stop criminals from committing these acts,” David Glawe, president and chief executive of NICB, said in a statement. “We must reinvest in local law enforcement, provide the necessary resources for prosecution and community policing programs and implement early intervention programs given the high incidence of juvenile offenders involved in vehicle thefts.”
Law enforcement agencies and communities reported over 250,000 thefts in the fourth quarter of 2022. California and Texas led the nation last year with the most reported stolen vehicles at roughly 202,700 and 105,000, respectively. Among the 10 states with the most vehicle thefts, Illinois (sixth-highest overall) had the most significant year-over-year increase of 35%. Following that was Washington (third-highest overall), with an increase of 31% from 2021.
The remaining states in the top 10 were Florida, Colorado, Ohio, Missouri, New York and Georgia. NICB used data from the National Crime Information Center to conduct its analysis.
Thefts of Kia and Hyundai vehicles spiked in recent years. In September, the Highway Loss Data Institute (HLDI) called Hyundai and Kia vehicles “easy targets” since many 2015 to 2019 model-year vehicles lack electronic immobilizers.
Electronic immobilizers prevent thieves from simply breaking into a vehicle and bypassing the ignition. Immobilizers were standard on 96% of other manufacturers’ vehicles in 2015 but standard on only 26% of Hyundai and Kia models, according to IIHS.
Some insurers, including Progressive and State Farm, started refusing to write policies for Hyundai and Kia models in certain cities. Michigan’s Department of Insurance and Financial Services (DIFS) issued a bulletin reminding insurers the state requires they offer auto insurance to all residents regardless of make or model—including Kia and Hyundai vehicles.
“In other states, some insurers have attempted to deny or limit auto coverage for [Kia and Hyundai vehicles],” Anita Fox, director of Michigan’s DIFS, said in a statement. “Our new bulletin clearly states that such actions are prohibited in Michigan. DIFS will continue to ensure that every eligible Michigan driver can get the auto insurance they need to legally drive on Michigan roads.”
Insurers can respond to the “indisputably” increased risk of Kia and Hyundai thefts by charging more for comprehensive coverage or choosing not to insure them, Robert Passmore, department vice president of personal lines at the American Property Casualty Insurance Association (APCIA), said.
“That said, any action that insurer would take would have to be in accordance with state law,” Passmore said in a written statement. States have rules about rate filing, canceling, and non-renewals. Also, some states have “take all comers” requirements prohibiting insurers from denying coverage based on vehicle make and model.
Kia and Hyundai have software fixes and other anti-theft devices available to drivers. Vehicle owners should contact their local dealer for more information. And, when shopping for insurance, be sure to let the insurer know if their vehicle has had the software upgrade.
Last year’s roughly 1.02 million stolen vehicles were just under 2008’s total of 1.05 million. NICB noted that law enforcement may still report thefts from 2022, meaning the numbers may change.
NICB recommends that vehicle owners follow good security practices and that their auto insurance policies are current. Owners should roll up their windows, lock their car doors, park personal vehicles in a garage, and park in well-lit areas.
- Published in Blog
Stronger Hurricanes to Put More Properties at Risk
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Over 13.4 million properties not currently exposed to hurricane-force wind damage will face increased risk over the next 30 years as climate change propels more intense storms, according to new research from First Street Foundation.
“Compared to the historic location and severity of tropical cyclones, this next generation of hurricane strength will bring unavoidable financial impacts and devastation that have not yet been priced into the market,” said Matthew Eby, founder and CEO of First Street, a nonprofit research and technology group.
First Street’s models also estimated the average annual loss due to tropical cyclone damage rising to $19.9 billion, with about $1 billion in higher exposure in Florida alone.
Other regions that face lower exposure now will be even more at risk in the future, First Street warned. The study projected losses in the Northeastern United States to increase by 87% over the next three decades as hurricanes track further north.
“The northward increase in hurricane activity may significantly impact buildings that have not been built to a code that considers the wind speeds they will likely face over the next 30 years,” researchers said. “Additionally, the count of properties with any average annual loss from wind will increase by about 55%, with about 2.2 million newly-impacted properties by 2053.”
The total number of storms isn’t expected to change, but the intensity will, according to the report. Historical evidence already illustrates rising risk: The proportion of major hurricanes (Categories 3, 4, and 5) has quadrupled since the 1980s, from 10% of all tropical cyclone events to over 40% today. First Street attributed the change to rising air and sea-surface temperatures fueling storms, as well as increased moisture levels in the air and shifts in wind patterns.
“Hurricanes affect communities within the United States more frequently and severely than other natural disasters,” said First Street in the report. “As a result, tropical cyclones have caused a total of $1.194 trillion (consumer price index-adjusted) in losses in the United States between 1980 and 2022, with an average cost of approximately $21 billion per event.”
Understanding evolving risk can help insurers set property rates more accurately, assist communities in developing resiliency plans and allocating resources, and give property owners information on how to better protect themselves and their homes and businesses, First Street said.
For more risk management news and insights, contact RISQ Consulting today.
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AAA Says Bad Driving Worsened Last Year
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Drivers increasingly engaged in dangerous behaviors last year. According to new survey data from the AAA Foundation for Traffic Safety, this put the brakes on a three-year decline in speeding, driving under the influence, and texting while driving.
The foundation found widespread increases in bad driving habits in 2021, but “most alarming” was a nearly 24% year-over-year uptick in the number of people who admitted to getting behind the wheel after drinking too much. A total of 7.3% of those surveyed admitted to driving under the influence of alcohol.
Those admitting to excessively speeding increased by 12.4% to nearly 51%, and those who said they drove within an hour of consuming cannabis rose by 13.6% to 5% of all people surveyed.
“The reversal in the frequency of U.S. drivers engaging in risky driving behavior is disturbing,” David Yang, the foundation’s executive director, said in a statement. “While drivers acknowledge that certain activities behind the wheel – like speeding and driving impaired, are not safe, many still engage in these activities anyway. We must be aware of the serious consequences of dangerous driving behaviors and change course.”
More than a quarter of those surveyed admitted to texting while driving in the past 30 days, even though 92% acknowledged doing so is dangerous. And while 88% of people agreed that aggressive driving behaviors, such as quickly changing lanes, is hazardous, nearly 23% admitted to driving aggressively within the past 30 days.
Insurance industry observers have noted the especially poor performance of personal auto lines of late is partly due to unsafe driving. Driving behavior worsened with the onset of the pandemic, coinciding with a decrease in overall miles traveled, and has not improved as traffic volumes normalized. Other factors cutting into personal auto profitability include supply chain disruptions, increasing costs of vehicles and replacement parts, and a shortage of skilled mechanics.
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Electric Vehicles Present New Insurance Challenges
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Electric vehicles (EVs) continue to gain traction in the U.S. auto market. Last year, Americans bought nearly 450,000 EVs—an 83% jump over 2020. With many federal and state governments pushing for lower CO2 roadway emissions, EV demand is expected to soar during the next decade.
This has commercial fleet owners wondering what a world without gas- and diesel-powered vehicles might look like, particularly when it comes to the potential exposures EVs could create. This article discusses the risks that could impact insurance costs for EV fleets.
Unique EV Risks
Because EVs tend to cost more than standard automobiles, their insurance rates are usually higher. However, other factors unique to EVs could also make insuring them costlier. Such factors include:
- Cyberthreats—Like most new cars and trucks, EVs offer connected car technologies such as Wi-Fi, data sharing and semi-autonomous systems that leave them vulnerable to cyberthreats. However, the public charging stations EVs rely on to recharge their batteries add another layer of risk. Charging stations may serve as an entry point for malware attacks, data theft, system outages, bugs and glitches. What’s more, once a data breach occurs in a single vehicle, it may be easier for a malicious party to access the rest of the fleet.
- Battery problems—There are several risks associated with EV batteries that can potentially impact commercial fleets. For example, battery manufacturing defects can lead to large-scale vehicle recalls, putting fleet owners at an increased risk of business delays. Additionally, under certain conditions, lithium-ion batteries that power EVs can ignite or explode. Notably, battery fires burn longer and hotter, release more toxic fumes and liquids, and spread faster over a larger area than traditional fires. Such an incident would create a whole new set of insurance challenges.
- Pedestrian accidents—One selling point of EVs is they run quieter than gasoline-powered vehicles. Unfortunately, this lack of audible engine noise may also put pedestrians at greater risk of being hit if they fail to hear an approaching EV.
Other Considerations
While uncertainty about new EV technologies will likely drive up insurance premiums initially, expectations are that prices will stabilize over the long term. Meanwhile, several other concerns will need to be addressed before EVs become scalable. These include the following:
- Scarcity of repair shops and parts—Very few auto shops can handle EV repairs, so it may be difficult to find timely service. Further, shops that do fix EVs often have trouble locating parts. This is partly because four key elements essential to battery technology—cobalt, graphite, nickel and lithium—are currently in short supply. Even if supplies can eventually catch up with surging demand, EV auto shops will remain at risk for supply-chain delays, as these rare elements are sourced from distant regions all over the globe.
- Costlier repairs—Most EV parts cost significantly more than parts for gas-powered vehicles. Batteries are especially high-priced and vulnerable to harm. An accident that might be a fender-bender on a standard car could result in an EV’s total loss if the battery takes serious damage. Adding to costs, EV repairs usually require more labor hours. This is in part due to EV technology’s increased complexity as well as auto mechanics dealing with the learning curve of working on unfamiliar machinery. As a new generation of technicians gains experience, repair times should shorten.
- Extreme weather concerns—It’s unclear how much of a role extreme weather will play in EV battery performance. Under severely hot temperatures, batteries, on rare occasions, have been known to ignite or explode. Under cold temperatures, batteries hold their charges for a shorter period of time. However, it’s unknown whether these drawbacks are significant enough to make EVs impractical in certain weather conditions or climates.
- High voltage hazard—A number of high-voltage electric cables run throughout the body of EVs. When an accident occurs, exposed cables could cause serious injury to passengers or first responders trying to free crash victims from damaged vehicles.
Conclusion
Although it probably won’t happen overnight, EVs seem positioned to dominate roadways sometime in the near future. Commercial fleet owners who start thinking about EV insurance challenges today will be better positioned to thrive in a post-fossil-fuel landscape.
Contact us today to learn more about insurance for EVs.
- Published in Blog
Thanksgiving FAILS – A Day You’ll Be Most Thankful For Insurance!
By Jennifer Outcelt, Creative Content Architect
We like to think of Thanksgiving as a wholesome day with family and friends enjoying each other’s company and extolling the many blessings we have had throughout the year. But in reality, it is often a day of great stress. Aren’t you thankful for having to clean your entire home, cook a ginormous meal that needs to all be done at the same time, do a ton of dishes, and make happy conversation with all your family (even though great Aunt Gladys is a bit of a wrench)? All while trying not to let on that you are one “So, when are you having more kids?” question away from a complete breakdown. Yeah, there may be a ton to be thankful for at Thanksgiving, but some things… not so much.
But if you are trying to out-do your brother-in-law’s brined and herbed turkey spectacular from last year by trying your hand at that whole fried turkey thing (how hard could it be?), then there’s one thing that you will definitely be thankful for; Insurance. Apparently, “firefighters responded to 1,630 home cooking fires on Thanksgiving in 2018 (the latest data available)—250% above the year’s daily average of 470.” That’s a ton of not-so-well-done birds!
Check out these interesting stats about holiday cooking fires and the home owner’s insurance that could save your rump!
https://www.forbes.com/advisor/homeowners-insurance/thanksgiving-fires/
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