Dear Michael,

Liar Liar, Cars on Fire was the title of an article out of Las Vegas back in April. Seven months later arsons are still on the rise.

We have been reporting about the increase in fraud and owner give-ups for the past year due to the economy and it does not seem to be slowing down. Detectives, Arson and SIU Investigators across North America, South Africa, and the UK are reporting similar findings.

Even if your insured is current in their payments, there may be motive. Many insureds that are not behind in their payments are still burning their cars in an attempt to lighten their debt history and improve credit scores due to the tightened credit restrictions.

Investigators have been extremely successful in stopping the fraud and catching the perpetrators by using modern day investigative tactics.

New York, California, Idaho, Pennsylvania and Hawaii have all reported increases (California had a 25 percent increase in suspected vehicle arson fraud) Click here for a story from the insurance Journal.

NICB reported a 27 percent increase in 2009 and conducted an owner give-up study in 2008. More information is available here.

Auto Theft Down; Insurance Fraud Up

Auto theft is down in many cities across the nation. In some states with low unemployment rates the standing joke on why car theft is down is because "It's harder to steal a car when someone is living in it".

Auto theft has fallen to a 20-year low even as the number of vehicles on the road has doubled. Part of the reason is due to better vehicle security, auto theft task forces targeting organized rings, better prosecution, better public awareness, as well as tighter border crossing scrutiny. Another factor to consider is that many types of fraud are up because they pay better in today's market than vehicle theft.

Auto theft may be down, but vehicle recoveries are also down. The United States is still losing close to a million vehicles per year. The FBI reported the total loss at $6.4 billion dollars using an average of $6,751 per vehicle; which many think is far too low. Add the lack of recoveries with high dollar cars and the situation is not a rosy as everyone thinks. This trend should signify the need to maintain auto theft task forces and focus to prevent the historical rise we see when we let our guard down.

Auto Theft Data
For a historical perspective on auto theft numbers, top 10 stolen cars, and costs over the past 10 years, look at our data at http://www.vintrack.com/moststolenvehicles.htm.

FBI data can be found here and a USA Today story on auto theft stats can be found here.

Fatality Mapping

The Foundation for Automotive Safety and Trends (F.A.S.T.) has been working at slowing the deaths, injuries, thefts and frauds related to vehicle trends. Unfortunately our mapping of illegal street racing, stunting and drifting fatalities and injuries continues to grow. By mapping these incidents it has given municipalities the data they need to take preventative actions.

To view details on what is happening in your city; go to www.ProtectOurStreets.org and choose Collisions.
Fatal

If you know of illegal street racing, drifting, stunting, car surfing or other related dangerous driving fatalities and injuries, please forward them to us for inclusion into this database.

Save Thousands of Dollars

Comprehensive Investigator's Guide
The Fast, the Fraudulent & the Fatal

How to Identify, Investigate, Prevent and Stop Auto Theft and Fraud for less than $20.00!

Over a decade of hands-on investigative experience specifically addressing auto theft and fraud as it relates to the most stolen vehicles on everyone's top ten list. Each investigator that reads this book will recover thousands of dollars in stolen vehicles and components and insurance companies will prevent millions of dollars in fraud and theft claims.

The Fast, The Fraudulent & The Fatal provides law enforcement and insurance companies with the information they need to prevent this illegal, costly, destructive activity from happening.

To learn more about how this book can save lives and protect property while preventing theft and fraud visit ProtectOurStreets.org or click here.

Sincerely,

The Foundation for Automotive Safety and Trends