Two-thirds of business owners who have commercial auto fleets say they don’t install car alarms in all of their vehicles. Reasons for this range from the fact that the risk of auto theft is low to the expense of arming the vehicles are more than the average annual losses incurred from theft. Car theft and vandalism are on the rise, however, and the additional costs businesses incur from theft are higher than most companies realize.
Businesses who have a commercial auto fleet may lose between 2-6 cars every year due to theft. And while half of the companies who have a car stolen from their lot will be able to recover it, it can take anywhere from a week to three months to locate a stolen vehicle.
In addition, not all thieves want to steal a company car. With the rise in gas prices, fuel and catalytic converter theft are on the rise. Criminals may siphon, drill or cut fuel lines in order to resell the gas at a profit.
The potential loss of a vehicle is not the only cost a business incurs when a company car is stolen. There is also the cost of equipment or company material in the vehicle when it was stolen, loss of productivity and the cost involved with finding, writing off or replacing the stolen vehicle. Costs may vary but on average:
- $3,000-$30,000 due to loss of contents in a vehicle
- $6,000-$20,000 downtime due to a theft
- $359 property damage per incident
- $759 additional losses per incident
Companies usually wait approximately four weeks before writing-off a stolen vehicle and then have the additional cost of adding a new car to their fleet.
It is important for businesses to find cost effective ways to protect their commercial fleet with safety and risk management. Learn ways to save money and still have comprehensive coverage by contacting us.