Good Neighbor Stories

State Farm auto claims data reveals continued surge in catalytic converter theft

Tue, 04 Oct 2022 10:20:13 -0500

Each day, more and more people across this country are walking out to their vehicles only to be alarmed by a loud, never-heard-before noise coming from them. The initial shock of this noise in many cases turns to inconvenience and often frustration when the root of the problem is discovered.

Their catalytic converter was stolen.

Claims data from State Farm, the largest insurer of automobiles in the U.S., shows that between July 2021 and June 2022 catalytic converter theft has grown 109% nationally, in terms of the number of claims filed, compared to the previous 12 months. During this recent period more than 43,219 of these parts were stolen and reported by State Farm customers compared to just above 20,600 in the previous 12 months (July 1, 2020 - June 30, 2021).

In the first half of 2022 State Farm has received over 23,000 catalytic converter theft claims. The data from the most recent 12-month period indicates that the ranking of the top 5 states in catalytic converter theft is currently led by California - with more than 2 out of 10 (24.5%) claims being filed in the Golden State- followed by Texas -with roughly 1 out of 10 (13.58%) of these claims- Illinois (3rd), Washington (4th) and Minnesota (5th).

Why the catalytic converter

Many drivers have no idea where this component is on their vehicle. If your automobile is powered by gasoline or diesel, it has at least one catalytic converter under it. A part of the exhaust system required in US vehicles since 1975, it helps reduce the contaminants emitted by the exhaust. Because of the rare metals that are inside catalytic converters – including platinum, palladium or rhodium – this auto part can be worth several hundred to several thousand dollars.. Some thieves go as far as removing these metals to sell them on the black market.

What you can do about it

The bad news is that catalytic converters can be easy to remove, particularly in tall vehicles like SUVs. Once the part has been extracted, drivers will hear the engine without any muffler, letting them know they have become the latest victim of this crime..

The good news is that, as with many things in life, you have options to protect yourself. First of all, by speaking with your State Farm agent, you can ensure that your auto insurance policy covers the theft of your entire vehicle or any of its parts, through comprehensive coverage.

Among other ways drivers can protect their vehicle is to park inside a garage or in well-lit areas, installing a sensitive alarm system, having a security camera pointing at your car in its usual parking spot, or engraving your VIN on your car’s catalytic converter.

Take precautions to not fall prey to auto parts theft, and leave the rest to State Farm.

Verifying vehicle mileage is a catalyst to avoiding fraud

Wed, 11 May 2022 10:49:00 -0500

Vehicle fraud is not just catalytic converter theft, it can also include odometer fraud. While this type of fraud is not easily detected, there are useful tips to help identify odometer tampering when purchasing a used vehicle.

According to the National Highway Traffic Safety Administration (NHTSA) odometer fraud is defined as the disconnection, resetting or alteration of a motor vehicle’s odometer with the intent to change the number of miles indicated. It is estimated that 450,000 vehicles are sold each year with false odometer readings, a crime that costs American car buyers $1 billion annually.

The NHTSA offers up these tips to detect odometer fraud:

ASK to see the title and compare the mileage on it with the vehicle’s odometer. Be sure to examine the title closely if the mileage notation seems obscured or is not easy to read.
COMPARE the mileage on the odometer with the mileage indicated on the vehicle’s maintenance or inspection records. Also, search for oil change and maintenance stickers on windows or door frames, in the glove box or under the hood.
CHECK that the numbers on the odometer gauge are aligned correctly. If they’re crooked, contain gaps or jiggle when you bang on the dash with your hand, walk away from the purchase.
EXAMINE the tires. If the odometer on your car shows 20,000 or less, it should have the original tires. LOOK at the wear and tear on the vehicle — especially the gas, brake and clutch pedals — to be sure it seems consistent with and appropriate for the number of miles displayed on the odometer.
REQUEST a vehicle history report from a service, such as CARFAX, to check for odometer discrepancies in the vehicle’s history. If the seller does not have a vehicle history report, use the car’s VIN to order a vehicle history report online.
VISIT www.nhtsa.gov to learn more information about odometer fraud.

Additionally, the NHTSA has identified that laws and regulations have passed at the federal level aimed at mitigating odometer fraud. The law requires written disclosure of the mileage registered on an odometer be provided by the seller to the purchaser on the title to the vehicle when the ownership of a vehicle is transferred. If the odometer mileage is incorrect, the law requires a statement to that effect to be furnished on the title to the buyer. However, vehicles ten years and older are exempt from the written disclosure requirements.

State Farm auto claims data reveals explosion in catalytic converter theft

Tue, 20 Jul 2021 15:12:00 -0500

Theft is as old as humanity itself. However, what has been changing throughout history are the most common objects being stolen. With many U.S. cities having more than two autos per household, auto parts have become a valuable currency for thieves. During the COVID-19 pandemic, one component in particular has gained more prominence than ever. No, it’s not your radio, it’s the catalytic converter.

According to State Farm claims data, in the 12-month period from the second half of 2020 through the first half of 2021 (from July 1, 2020 to June 30, 2021), catalytic converters theft grew close to 293 percent nationwide, in terms of number of claims filed, compared to the 12 months prior (comprising the last half of 2019 and the first half of 2020), reaching more than 18,000 instances, compared to the slightly above 4,500 in the earlier period. In terms of payouts, the total paid to customers during the most recent 12-month period is more than $33.7 million. In the previous 12-month period it was slightly below $9 million.

The trend is accelerating: in the last 6 months of 2020, State Farm paid out slightly more than $12 million in claims for catalytic converter theft, but in the first 6 months of 2021, that number has grown to more than $21 million in paid claims.

How big is the problem

The data from the first half of 2021 indicates that the ranking of the top 5 states in catalytic converter theft is led by California – with more than 3 out of 10 claims being filed in the Golden State. Texas is second, with roughly 1 out of 10 of these claims, followed by Minnesota, Washington and Illinois.

Catalytic converter theft is widespread and affects many car makes and models. From a growth perspective, the situation is dire in Texas, where during 2020 there were 445 catalytic converter thefts reported by State Farm customers. For the first half of 2021, that number has ballooned to 1,380, an almost 210 percent increase.

Why the catalytic converter

“As we continue to endure the COVID-19 pandemic, we are seeing a steep increase in the number of auto parts theft around the country, particularly of catalytic converters,” State Farm Vice-President of Operations, P&C Claims Michael T. Keating said. "Customers can rest assured that State Farm agents can provide them with the appropriate coverage to protect their assets. We would also like to remind customers that there is a lot that they can do to reduce the risk of falling prey to this type of crime.”

What you can do about it

Take precautions to not fall prey to auto parts theft, and leave the rest to State Farm.