Insurers and Auto Theft Prevention. Catherine Rankin, Counsel State Farm

Transcription

1 Insurers and Auto Theft Prevention Catherine Rankin, Counsel State Farm

2 Impact of Vehicle Theft According to National Insurance Crime Bureau (NICB), a vehicle is stolen every 26 seconds. Average Price of a New Car $28,400 (National Automobile Dealers Association). Average Price of a Used Car $13,900 (Edmunds).

3 Industry Efforts Consumer Outreach. Investigation and Research. Strategic Partnerships.

4 Consumer Outreach Discounts may be offered for car alarms, tracking devices and disabling devices. Brochures, websites and public service.

5 Investigation and SIUs Employees dedicated to the investigation of fraudulent or nonmeritorious claims. Auto Theft - Ring activity, title washing and owner give ups.

6 Research Some insurers may have research units. May advise manufacturers or other organizations of theft trends and/or vulnerabilities of various vehicles to theft.

7 Strategic Partnerships Consumer Awareness and Legislative Iniatives Detection and Prevention Auto Theft Authorities

8 Awareness and Legislation Partnering with NICB and NCAIF to advance legislation. National Coalition Against Insurance Fraud has an active public awareness campaign on insurance fraud that includes airbag theft and titling issues.

9 Auto Theft Authorities Purpose is to deter vehicle theft by integrating prosecution, prevention and education. Auto Theft Authorities legislatively created organizations. Funded by premium assessment or dues.

10 Auto Theft Authority Do we need one? How will we fund it? Funding dedication. Composition of Board/Authority.

11 Detection and Prevention NICB National Insurance Crime Bureau Partners with insurers and law enforcement agencies to facilitate the identification, detection and prosecution of insurance criminals. Main mission to reduce auto theft.

12 NICB Website Hot Wheels Hot Spots VIN Check

13 Changing Face of Auto Theft % Joy rides recovered undamaged 1994 only 18% joy rides % stripped 31%vandalized/ missing parts 16% wrecked 4% burned/flooded

14 Changing Face of Auto Theft Different motivation calls for different response Change in recovery indicates change in perpetrators from joy riders to professionals/rings Stole for resale or parts

15 Response 1992 Federal Anti Car Theft Act required manufactures to VIN mark parts on certain models based on theft rates Also included NVTIS National Vehicle Title Information System electronic exchange of vehicle titling information between state MVAs Titling, odometer and branding

16 Common Brands Salvage Junk Theft/Recovered Theft Flood Hail Rebuilt

17 Why Share Titling Information Cloning is when a VIN number for one vehicle is used for another vehicle. Washing titles allows owners to remove brands by leveraging differ branding standards among the states.

18 NVTIS and VIN Check NVTIS unfunded. VIN Check voluntary. Neither addresses underlying issue inconsistent titling standards.

19 Inconsistency Different triggers for various brands. Not applying branding requirements to noninsured losses or owner retentions. Failing to require inspection for rebuilt brand or removal of brand. Not requiring any title for vehicles based on year of manufacture.

20 Solutions Consistent titling laws. Eliminating opportunities in current titling laws. Enhancing penalties for ring and professional activities. Enhancing enforcement and prosecution - dedicated funding.

21 Questions????