Ri$k Happens: Coveted converter

Jan. 24, 2021 - By Angela Cady, AIC - Loss Analyst, ARA Insurance

Fred completed the pre-trip inspection and entered the rental store’s truck to head off on his first delivery. He strapped in and made sure he knew where he was going. He then turned on the vehicle. Immediately, he knew there was a problem. Instead of the normal, comforting engine sound, Fred was greeted with a loud roar. His heart sank. He had heard this noise once before with his own vehicle.

Fred exited the vehicle and quickly determined that the catalytic converter had been stolen from the rental store’s truck. He alerted his manager. At first, the rental store owner planned to pay out of pocket for the repair thinking it would likely be under the deductible. However, when they had their shop look at it, they found out that the careless thief had damaged some surrounding systems and the bill would be even higher than expected. The rental store owner decided to turn in an insurance claim. The claim will be paid according to the policy language.

With more people facing unemployment and more vehicles parked, it is no wonder that lucrative catalytic converter thefts have been on the rise. This type of theft takes little time and can be hard to prevent. Tall vehicles such as trucks and SUVs are a popular target as they are easier to fit under. Vehicles that are parked for long periods of time also can attract unwanted attention. There are some steps you can take. Park in a well-lit, high traffic area whenever possible. Park vehicles in a garage or behind a fence if that is an option. Some vehicle security systems can be calibrated to go off from vibration, which would likely include attempted converter theft. It also may be possible to have your catalytic converter welded to the vehicles frame to make it harder to steal.

This item, provided by ARA Insurance, Kansas City, Mo., contains real-life insurance claims involving rental stores and is intended to help readers better understand and manage risk. For more safety and risk management information, customers of ARA Insurance can log on to ReSource. Access is free, so if you haven’t signed up yet, contact your agent or call 800-821-6580.

Sources: allstate.com; caranddriver.com; edmunds.com