Michigan Sees Steep Decline in Car Theft Rate

ATPA, otherwise known as the Michigan Automobile Theft Prevention Authority, has released its annual report for 2011, detailing that the rate of vehicle thefts in the state experienced a steep decline during the 2010 calendar year. Compared to the year before, thefts were down almost 9.5%. This is excellent news for car owners in Michigan, but what many consumers want to know is whether the decline will have any significant impact on their auto insurance rates.

The Insurance Institute of Michigan has weighed in on the issue, releasing a statement by its Communications Director, Lori Conarton, who remarked that “Auto insurance premiums are based on a number of factors.” This includes the type of vehicle, how much the car would cost to repair, any recent accidents or tickets, where the driver actually lives and what type of medical coverage is needed. “All of those factors might drive premiums up,” said Conarton.

This means that consumers are not able to count on a decline in the theft rate alone if they want to lower their premiums. They must also do all they can to meet the other requirements for lower rates, such as choosing a car that is inexpensive to repair after an accident, and perhaps more significantly, maintaining a completely clean driving record with no tickets or accidents.

Another important angle for consumers to keep in mind is that in every state, consumers have choices about the insurance company they prefer to work with. Some companies charge more than others for the same coverage, so the savvy consumer is the one who goes online to compare rates from many different insurance providers. This used to be quite an undertaking, requiring multiple phone calls or even written letters, but today is the age of instant communications. Consumers can take advantage of insurance comparison websites that automatically aggregate rates from a wide variety of companies and provide information on request to consumers who merely fill out one simple form.

Lower Theft Rate: The Ultimate Impact

Even though consumers will not see an immediate auto insurance rate decline based on the recent theft data, the decline in the theft rate will end up having a long-term impact. According to Conarton, insurance companies usually calculate their rate schedules based on information that spans three or more years. This allows them to average out trends so that their pricing models are not based on one-time events but instead rest on a solid base of reliable data.

The APTA 2011 report reveals that theft rates have actually been somewhat low for more than 20 years – since 1986. To date, the decline represents a fall of more than 60%. This has had the effect of lowering insurance premiums by as much as $50 for each and every vehicle insured in the state.

While this has no doubt come as very welcome news to Michigan residents, car owners there and in every other state should be sure to go online in order to comparison shop, since additional savings may well be possible by switching to an alternate insurance provider.