Car thefts in Israel double

Mazda 3 credit: PR

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Supply chain disruptions have boosted car thefts, and insurance premiums, in what one source called an "economic intifada."

Car thefts have doubled in Israel over the past year, according to data from insurance companies. In December 2022 alone, between 1,200 and 1,300 cars were stolen, 100% higher than in December 2021. The rise is due to a shortage of new cars and a sharp rise in the price of spare parts resulting from supply chain disruptions.

According to insurance companies the average price of a stolen car is NIS 85,000-90,000, requiring the insurance companies to pay out more than NIS 110 million per month and over NIS 1.3 billion per year. Because of the rise in theft, insurance rates have risen by 10%, an insurance executive told "Globes." But data on digital insurance website Wobi suggests the rise might be closer to 20%.

The most popular car model stolen is the Mazda 3 followed by the Kia Picanto, Mazda 6, Hyundai Tuscon, Kia Niro, Mazda CX5, Kia Sportage and the Hyundai Kona. According to vehicle location technology company Pointer, 50% of the cars stolen in Israel are SUVs. It seems that car thieves have not yet digested the entry of electric vehicles into the market and few of them are stolen.

Pointer adds that the most common time for a car to be stolen is at night between Friday and Saturday, while 7pm in the evening, just after people have returned home from work is another popular time for thefts.

95% of the cars stolen end up in the Palestinian Authority

Pointer CEO Ilan Goldstein says, "It seems there is a correlation between those committing the vehicle thefts, residents of the territories moving illegally in Israel as smugglers and terrorists. The thieves are motivated by economic motives and for some it is combined with nationalistic hatred. There have also been carjacking events, with stone throwing and even shooting. These are people, most of them young, who decided to join the criminal organizations to make easy money."

The insurance company senior executive also claims that the increase in thefts originates from the demand for new vehicles or spare parts in the Palestinian Authority. "This is a kind of economic intifada. 95% reach Palestinian Authority, it is an organized industry in which everything is ordered in advance. The newer vehicles are usually stolen for personal use in the Palestinian Authority areas, while older vehicles are stolen for spare parts that have been ordered in advance."

All this does not necessarily mean that locations nearest the Palestinian Authority are seeing the most car thefts. 10% of cars are stolen from Tel Aviv followed by 9% in Petah Tikva, 6% in Jerusalem, 5% in Beersheva (known for crime from the Bedouin sector) and 4% in Netanya.

Despite the alarming figures, it seems that the Israel public is in no rush to protect their vehicles. Insurance companies do require different protection devices for some models, but these are mainly means that allow the vehicle to be located after it has been stolen. In such cases, the location companies send a mobile patrol to chase after the stolen vehicle, and sometimes they do succeed in thwarting the theft, but often the chase ends with damage to the vehicle to the point that it is a write off.

Published by Globes, Israel business news - en.globes.co.il - on January 5, 2023.