State Farm slammed by rising theft of catalytic converters
The insurance giant has already paid out more than $50 million on the pricey auto parts so far this year
Catalytic converter theft ‘epidemic’: Car part targeted for resale of precious metals
FOX Business’ Grady Trimble speaks with Joe’s Expert Auto owner Joe Betancourt in Chicago, Illinois, about the rise in crooks stealing catalytic converters.
State Farm says the COVID-19 pandemic-era surge in thefts of catalytic converters is only getting worse, pointing to startling data showing how much the skyrocketing crime has cost the company already this year.
The largest U.S. property and casualty insurance company by premiums written told FOX Business that in the first half of 2022 it has already paid out $50 million for 23,570 catalytic converter theft claims nationally. That means the number of thefts of the pricey auto part across the country is already on track to surpass the company's payout of $62.5 million to replace 32,265 catalytic converters lifted from customers' vehicles last year.
Deputy Jaime Moran from the Los Angeles Sheriffs Department engraves the catalytic converter of a vehicle with a traceable number on July 14, 2021, in City of Industry, California. (FREDERIC J. BROWN/AFP via Getty Images / Getty Images)
In the state of Illinois alone, State Farm has already paid more catalytic converter theft claims so far in 2022 than in the entire year of 2021.
The company's numbers show a meteoric rise in the theft of the car part that is highly sought out by thieves who are able to remove them from underneath a vehicle in a matter of minutes and sell them for hundreds of dollars due to the precious metals they contain.
Platinum, palladium and rhodium are metals commonly found in the auto part.
Thieves can make $300 to $1,500 for selling converters for scrap, the Department of Justice said last week.
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In 2019, before COVID-19 began impacting the U.S., State Farm only paid out $4.6 million to replace 2,535 catalytic converters. In 2020, that number more than quadrupled to 10,265 with the company paying out $20 million for replacements.
State Farm Insurance retail office. (John Greim/LightRocket via Getty Images / Getty Images)
With more than 23,000 catalytic converters stolen just from State Farm customers alone by the end of June, drivers of cars, RVs and other vehicles need to be on the alert and expect that their ride could be targeted next.
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The primary function of catalytic converters is to convert environmentally harmful gasses from the vehicle's engine to less harmful gasses. So lower-emission cars, which have higher concentrations of valuable metals inside their converters, are particularly at risk.
For that reason, one auto expert told FOX Business' Grady Trimble last week, owners of Toyota Priuses, Subaru Foresters and Honda Elements are under the greatest threat of having their catalytic converters stolen.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TM | TOYOTA MOTOR CORP. | 173.15 | +0.20 | +0.12% |
| FUJHY | SUBARU CORP. | 7.875 | -0.03 | -0.34% |
| HMC | HONDA MOTOR CO. LTD. | 26.25 | +0.06 | +0.23% |
ExperTec Automotive technician Juan Martinez etches a catalytic converter with the cars license plate number in Huntington Beach on Saturday, November 13, 2021. (Photo by Mindy Schauer/Digital First Media/Orange County Register via Getty Images / Getty Images)
In order to reduce the chances of having parts stolen from vehicles, State Farm recommends people consider parking inside a garage or in a well-lit area. If your vehicle must be parked in a driveway, the insurance provider suggests installing motion sensor security lights as a deterrent that might make thieves think twice.
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The company also recommends making sure your auto policy covers theft of your entire vehicle or its parts through comprehensive coverage.
FOX Business' Grady Trimble and Kristen Altus contributed to this report.