Mercury General Sees 23% Drop in Auto Thefts, Warns of Keyless-Entry Hacks
Mercury General reports a 23% nationwide drop in auto thefts in 2025 versus 2024, with 49 states seeing declines but Southern California accounting for over 50% of California’s incidents. The insurer warns that rising keyless-entry exploits and OBD port hacks could drive future claim severity and adjustment of policy terms.
1. Record Decline in Auto Thefts
Mercury General’s analysis shows a 23% reduction in U.S. vehicle thefts during 2025 compared to 2024, marking the second consecutive year of significant declines. Forty-nine states reported fewer incidents, signaling a sustained downtrend that could lower overall auto insurance claim frequency.
2. California Remains Primary Hotspot
Despite national improvements, California continues to experience elevated theft levels, with over half of the state’s auto thefts occurring in Southern California and concentrated in Los Angeles County. This regional concentration may influence localized underwriting adjustments and reserve allocations.
3. Shift to Tech-Driven Theft Methods
Traditional break-ins are giving way to sophisticated tactics such as relay attacks on keyless-entry systems and hacking of onboard diagnostic ports. These methods enable thieves to bypass standard locks and immobilizers, raising concerns over claim complexity and repair costs.
4. Implications for Insurance Policies
Mercury General highlights the need for updated risk assessments and potential revisions to policy incentives, including discounts for anti-theft devices. Insurers may consider integrating coverage endorsements for emerging security technologies to mitigate losses and manage future claim severity.