Business Alert: Catalytic Converter Theft

 

It’s 8:30 a.m. and you step up into the company’s new pickup, ready to start the day. But when you turn the key, it sure doesn’t sound new. That familiar hum has been replaced by a gravelly roar. Fasten your seatbelt – it’s a sign your truck’s been stripped of its catalytic converter. You’re yet another stunned driver wondering how and why it happened.

Across the country, thousands of drivers are experiencing the same awful surprise. With the price of precious metals skyrocketing, thieves are helping themselves to catalytic converters that contain enough platinum, palladium or rhodium to make it worth the risk to cut it from the underbelly of your vehicle.

“A lot of people are surprised by this crime, because they aren’t hearing much about it in the media,” says Mike Ekiss, Associate Vice President of Farm/Agribusiness and Loss Control for Nationwide. “But the threat to small businesses is real, and it could cost you if you don’t take precautions.”

What are catalytic converters, and why are they worth stealing?

Catalytic converters are devices that reduce pollution-causing emissions. Since 1975, all vehicles produced in the United States must have a catalytic converter as part of the exhaust system. The precious metals inside act as catalysts; when hot exhaust enters the converter, a chemical reaction occurs that renders toxic gases, such as carbon monoxide and hydrocarbons, into less harmful emissions.

Stolen catalytic converters are sold to scrap yards for around $100 to $150, and when you consider the current prices for precious metals you can understand the demand. Rhodium sells for roughly $9,500 an ounce, while platinum pays at about $2,000.

Meanwhile, victims of catalytic converter theft are left to deal with the aftermath. There’s the hassle of a vehicle that can’t be safely driven, and the impact that has on your business. There’s the high expense of having it towed to a local repair shop. And replacement of catalytic converters can run anywhere from $300 to $1,000, depending on the make and model of the vehicle. Nationwide’s comprehensive car insurance for businesses and individuals covers these repairs. If you are not insured with Nationwide be sure to check your commercial auto insurance policy to ensure that you are covered.

What thieves look for

Vehicles that sit higher from the ground, such as trucks, pick-ups and SUVs, are particularly vulnerable to catalytic converter theft because thieves can slide underneath without having to jack up the vehicle to gain access to the converter. With just a few cuts of a battery-powered saw, the converter can be removed in less than a minute.

Thieves typically look for vehicles that are parked for prolonged periods of time in large lots, such as shopping centers, mass transit commuter lots or company parking lots. “Corporate fleets are particularly vulnerable, because thieves can hit multiple vehicles in a single location,” says Ekiss. “And if that happens, it can shut down a business for days.”

Smart steps for preventing theft

Preventing catalytic converter theft on your vehicle is a matter of common sense and some research.

1. Always park in well-lighted areas.
   
2. At shopping centers and other similar parking lots, park close the entrance of the building, or near the access road where there’s a lot of traffic.
   
3. If you own or work at a business or factory, park within a fenced area that’s busy during the day and secured at night.
   
4. Engrave your license plate number on the converter to make it traceable. This can help with local police investigations.
   
5. Purchase a vehicle security system, and make sure its set to triggered with just the slightest motion.
   
6. Visit a local muffler shop and have the converter secured to the vehicle’s frame with a couple of pieces of hardened steel welded to the frame.
7. Check out the different types of catalytic converter theft deterrent systems at your local auto parts store or on the Internet.

Keep Nationwide on your side

Nationwide agents and loss control specialists can help advise policy holders about these and other commercial vehicle risks. And we can help advise you about the coverage you need if you’re not a policy holder. Find an agency today.