Insurers warn against increased risk of vehicle theft

Old Mutual Insure and its subsidiaries are warning vehicle owners of newer and late model high-end vehicles, especially bakkies and luxury vehicles, to be extra vigilant. This is as the insurer is experiencing an increase in claims for the theft and hi-jacking of these vehicles.

“From our investigations, it appears that syndicates have found ways to seamlessly access vehicles with keyless entry systems. The theft rate is particularly high in Gauteng, KwaZulu-Natal, and some of our smaller inland provinces. Although it seems like traditional tracking devices are becoming less effective, they still assist in mitigating the risk as they do provide an advantage in the early stages of theft and hijacking,” says Tarina Vlok, MD of Elite Risk, a high-net-worth insurer and subsidiary of Old Mutual Insure.

In an effort to curb the increased risk, Old Mutual Insure and Elite Risk Acceptances require the fitment of approved early warning/active tracking devices on higher-risk vehicles covered under Commercial Lines, Agri and Personal Lines policies. Vehicle owners are urged to ensure the fitment of a good-quality tracking devices before 15 April 2023. This does not apply to vehicles in the Western Cape, Eastern Cape, Northern Cape, Botswana or Namibia.

The companies have also warned that if policyholders do not comply, they will no longer be insured against theft and hijacking.

“We are living in unprecedented times where vehicle syndicates have learnt how to use sophisticated means of technology to access a vehicle. We remain committed to the safety and security of our customers. It would be amiss of us not to take drastic action in this climate,” says Vlok.

Old Mutual Insure and Elite Risk will discount vehicle premiums (if not already discounted) due to the reduced risk.

She says that the company is trying to make the process as easy and seamless as possible for policyholders.

“We have partnered with several tracking companies to help clients with high-risk vehicles access tracking and stolen vehicle recovery service,” says Vlok.

However, she adds, it remains the customer’s decision as to which tracking device they wish to fit from an approved list by the insurer.

“We further encourage that all policyholders have a tracking device fitted, regardless of the type of vehicle,” says Vlok. “It is also imperative that customers regularly check and ensure that their tracking devices are in working order.”

She says that it is also the vehicle owner’s responsibility, amidst this climate, to ensure they are proactive in mitigating the increased risk of theft and hijacking. Below are Vlok’s additional measures that all vehicle owners can take to secure their vehicles against theft:

– Park your vehicle in well-lit, busy areas. Avoid leaving your car in isolated areas or places with poor visibility.
– Install an alarm system or immobilizer, which can deter thieves and prevent them from starting the engine.
– Use a steering wheel lock, which can make it more difficult for thieves to drive away with your vehicle.
– Consider using a faraday bag for relay/hacking attacks as this blocks the key signal that certain syndicates use to jam vehicle remotes.
– Fit more than one tracking device into the vehicle to make it more difficult to steal and easier to recover.