Cities in Texas Hotspots for Auto Theft

Posted in Auto Insurance

January 12th, 2010

As you know, auto theft – or the possibility of it happening – is known to be a reason that your auto insurance premium could increase, which means, according to this theory, some living in specific areas of Texas, could face higher rates. Specifically, in El Paso and Laredo, Texas there have been reports auto thefts are prominent, a problem that could ultimately result in higher premiums for the area.

Why Is Auto Theft Prominent in These Areas?

According to a list revealing hot spots for vehicle theft published by the National Insurance Crime Bureau (NICB), El Paso and Laredo are hot spots for vehicle theft. Among many reasons, one major factor is possibly a Mexican drug war that is causing crime to rise.

The NICB president, Joe Wehrle, noted in a statement made to ElPasoInc.com that cars, trucks and SUVs are being stolen and used to carry drugs, money and weapons in and out of Mexico.

Data Discrepancies Between NICB and Law Enforcement

What’s interesting about these two areas being hotspots for auto theft is that, according to law enforcement in these areas, auto thefts have actually been decreasing. Law enforcement in El Paso noted that auto thefts were at 2,431 in 2008, but had dropped to 1,561 by Dec. 19, 2009.

The police say that a possible reason for the difference in figures is data collection. While the law enforcement numbers come from actual theft investigations, the NICB stats come from the National Crime Information Center, which is the FBI’s computerized index of criminal justice information, which might include cars that are registered in the U.S., but actually stolen in Mexico.

Auto Insurance Implications

Experts from the Insurance Information Institute say that it is likely that companies do incorporate NICB data into their risk calculations that determine premiums. However, they note that it would likely not be the only source of information used to determine rates.

In other words, data may affect premiums in El Paso and Laredo so, but probably not enough to raise them without other similar information to back it up.