Here’s a development aimed at providing some ancillary benefit to auto finance companies when the vehicle connected to the installment contract is stolen.
This week, CalAmp announced plans to partner with TransUnion to help insurance carriers better manage risk, minimize replacement losses and improve customer service.
The partnership intends to leverage TransUnion’s insurance data and industry relationships to the benefit of consumers and insurance companies through the activation of stolen vehicle recovery (SVR) services in LoJack’s installed base of vehicles with units previously in a dormant state.
When a LoJack equipped vehicle is reported stolen and is activated, law enforcement can directly locate and recover the vehicle using one of more than 14,000 LoJack tracking computers installed in police vehicles across the nation.
“Bringing together the proven capabilities of our LoJack Stolen Vehicle Recovery System with TransUnion’s strength in insurance data analytics means insurers will gain access to enhanced services for tracking and recovering stolen vehicles,” said Michael Burdiek, president and chief executive officer at CalAmp.
“The combined resources could save insurance providers millions of dollars per year in stolen vehicle claims and bring peace of mind to consumers,” Burdiek continued.
As the only SVR system directly integrated with law enforcement, the LoJack Stolen Vehicle Recovery System has a more than 90 percent recovery rate on cars, trucks and SUVs. Triggering a real-time activation of a dormant LoJack stolen vehicle recovery service can mean the difference between a full recovery or a complete loss.
“As the CalAmp and TransUnion relationship moves forward, we believe both insurers and consumers will realize great benefits,” said Mark McElroy, executive vice president and head of TransUnion’s insurance business unit. “Our role in helping to track down stolen vehicles at a faster rate will be especially rewarding to see.”
In 2017, the average recovery value per vehicle was $10,8071. Law enforcement recovered more than $134 million worth of LoJack-equipped stolen vehicles in 2017, a 7-percent increase from 2016.
According to the FBI Uniform Crime Report, auto theft increased at a similar rate nationally.
“As the cost of replacement parts increases with more advanced vehicle technology, the profit incentive becomes even stronger for thieves, increasing the risk of auto theft losses for insurers and consumers,” officials added.