Posted on 09/22/23
| News Source: FOX45
Auto thefts have dramatically spiked across the country, and many fear insurance rates may continue to follow.
Experts say nationwide auto insurance rates are rising upwards of 20%, mostly due to the increased cost of living, but also due to the increase in auto thefts.
In Baltimore City, auto thefts are up more than 220% compared to this time last year.
The latest statistics posted by Baltimore Police show as of September 16, 2023 there have been 7,708 auto thefts reported across the City so far this year.
That averages out to about 29 thefts a day or more than one car an hour.
“It's frustrating. I have to go through all these other extra financial situations with this,” said Kiera Atkins, whose car was stolen from the FOX45 News parking lot last week.
The extra financial situations include insurance.
Those without comprehensive auto insurance or any insurance are finding themselves out thousands of dollars because the policy doesn’t cover auto theft.
A local insurance broker weighs in.
“We are seeing an increase in auto thefts,” said Yvonne Nieves-Funes, with the Insurance Center of Baltimore. “Unfortunately, in a lot of cases our clients only have liability insurance so in those cases they don't have coverage. Some of the times the vehicles are recovered. Other times the vehicles are involved in accidents or just never recovered.”
But even those with a policy that covers auto theft are feeling the pinch.
There’s the cost of your deductible, what you pay out of pocket before insurance covers its portion.
And simply filing a claim can cause your premium to go up.
Over the phone, one woman says she’s opting to pay out of pocket after suspects targeted her car here in the City.
“We just ended up having to pay money out of pocket to get the window fixed. We still haven't gotten the ignition fixed because if we report it to our car insurance it's like our premium is going to go up even though its not our fault,” said Ms. Williams.
And if you live in Baltimore City, experts say drivers on average were already paying about 10% more to have their car insured compared to neighboring counties.
“This is definitely impacting our clients. Some are even selling their cars because they can't afford their insurance at this point and those who do still have insurance are paying a lot more than even just a year, two years ago,” said Nieves-Funes.
Bottom line, car thefts are on the rise and contributing to higher auto insurance rates for many drivers. If you’re a victim, comprehensive car insurance covers auto theft.