In 2009, SBD released research into North America insurance and vehicle theft . At the time, we predicted that vehicle manufacturers would take advantage of a legislation change that allowed for steering lock deletion, especially given the severe economic conditions in the USA market. Ultimately, this approach reduces the theft performance of the vehicle as it removes one ‘layer’ of protection.
This news report from America highlights the negative effects of this approach with particular attention to GM’s Cadillac Escalade.
Vehicles that are easily and frequently customised or accessorised are usually stolen for their parts and accessories. The Cadillac Escalade is a good example as it was frequently stolen due to its popularity, ease of theft and for custom tyres and wheels.
Due to the desirability of this model and the relative ease of theft, the Escalade was the number one stolen vehicle four years running and has generated a significant amount of negative publicity for GM.
According to the Highway Loss Data Institute, average insurance loss ratios for the Escalade were 17 times the normal rate, with an average theft claim in excess of $40,000.
Deletion of steering lock legislation
Since 2007, the interpretation of the legislation has changed in both Canada and the USA so that a steering lock (or other locking device) is not required provided the vehicle is equipped with an electronic engine immobiliser. Contacts within the insurance industry have suggested that Ford, Chrysler and General Motors have seen a rise in what they term “push and steal” where the safety device is overcome and the vehicle is pushed (or towed) to a remote location. Once the vehicle has been moved the thieves have time to either overcome the immobiliser or strip the vehicle of parts without being disturbed.
For more information on global theft trends, insurance requirements in North America or the future market for steering locks, email jappleby@sbd.co.uk