In recent years, the theft of catalytic converters has been a problem across the U.S. But drivers can now exhale as the tide appears to be turning.
Catalytic converter thefts plunged during the first half of the year, down 74% from the same period in 2023, according to a State Farm review of auto claims data. It was the second consecutive year that catalytic converter thefts have fallen. Before 2023, such thefts had risen sharply for several years.
When a vehicle’s catalytic converter is stolen, the loss of the converter is not necessarily the only casualty, says Loretta Worters, vice president of media relations at the Insurance Information Institute (Triple-I).
“A lot of the claims include damage to the car when thieves try to steal the converter,” she says.
Falling thefts are good news for insurers and policyholders. But what is behind this turn of events?
- Catalytic converter thefts dropped nationwide for the second straight year.
- Many factors have contributed to the drop, especially plunging rhodium prices.
- California tops the list of U.S. states with the most catalytic converter theft claims.
State Farm: Catalytic converter theft claims drop 74%
State Farm found a major fall in the number of catalytic converter theft claims in 2024. More than 3,800 theft claims were made from January to June of this year, compared to 14,800 such claims during the same period in 2023.
Meanwhile, more than 23,000 catalytic converter theft claims were made in the first six months of 2022. So, the trend is heading in the right direction.
Top 10 states for catalytic converter theft claims in 2024
During the first six months of 2024, the following states saw the largest number of catalytic converter thefts. Note that for 2024, State Farm did not disclose how much was paid out in claims:
| State | 2024 Claims | 2023 Claims |
|---|---|---|
| California | More than 2,000 claims | 5,400 claims |
| Illinois | 540 claims | Nearly 1,300 claims |
| New York | Nearly 200 claims | More than 500 claims |
| Texas | Nearly 140 claims | 1,450 claims |
| Florida | Nearly 115 claims | 330 claims |
| Pennsylvania | More than 85 claims | More than 480 claims |
| Ohio | 77 claims | More than 420 claims |
| New Jersey | More than 75 claims | 208 claims |
| Minnesota | 68 claims | 400 claims |
| Colorado | 58 claims | Nearly 670 claims |
Top 10 states for catalytic converter theft claims in 2023
The following states had the largest number of catalytic converter thefts from January to June 2023:
| State | 2023 Claims | Claims Paid |
|---|---|---|
| California | More than 5,400 claims | $17.8 million |
| Texas | 1,450 claims | $5.1 million |
| Illinois | Nearly 1,300 claims | $2.9 million |
| Colorado | Nearly 670 claims | $2 million |
| New York | More than 500 claims | $1.5 million |
| Pennsylvania | More than 480 claims | $1.1 million |
| Georgia | 410 claims | $898,000 |
| Minnesota | 400 claims | $934,000 |
| Florida | 330 claims | $896,000 |
| Washington | 320 claims | $773,000 |
Catalytic converter theft trends: Year-by-year surge in claims from 2019 to 2024
Claims have fallen sharply during the past two years. Although they remain higher than in 2019, they are down significantly from 2021 and 2022:
| Year | Number of Claims | Total Claims Paid | Average Claim |
|---|---|---|---|
| 2019 | 2,500 claims | $4.7 million | $1,900 |
| 2020 | 10,000 claims | $20.9 million | $2,100 |
| 2021 | 32,000 claims | $73.7 million | $2,300 |
| 2022 | 45,000 claims | $115.4 million | $2,500 |
| 2023 | 21,200 claims | $62.5 million | $2,900 |
| 2024 (Jan-Jun) | 3,800+ claims | $11.2 million | $2,900 |
Why are catalytic converter thefts decreasing?
A combination of factors has helped reduce the number of catalytic converter thefts. As the public has become more aware of these thefts, drivers have taken steps to better protect their cars, such as parking in garages.
Governments have also introduced new statutes that more harshly penalize these thefts, says Nicholas Zeitlinger, a public affairs specialist for the National Insurance Crime Bureau (NICB).
In other places, laws make it tougher to profit from catalytic converter thefts. For example, Denver now requires secondhand dealers and auto parts recyclers to check the ID cards of those trying to sell the converters.
In addition, dealers must record information about the sellers. The result has been a 95% drop in catalytic converter thefts in the city during 2024.
But Zeitlinger says the chief factor in lowering sales might be dollars and cents.
“Thefts are likely tied to precious metal prices,” he says. “Rhodium — which was a significant reason for thieves to seek catalytic converters — has maintained lower prices over the last year and a half.”
The price of rhodium jumped from $3,000 an ounce in 2019 to $26,000 an ounce in 2021. This year, rhodium has dropped back down to nearly its 2019 level.
Other precious metals used in catalytic converters — such as palladium and platinum — also have dropped in value.
How the drop in thefts affects policyholders
Theoretically, a drop in catalytic converter claims could result in lower insurance premiums. However, policyholders should not necessarily expect to see a sizable decrease in the amount they pay for insurance.
“It depends on what the insurer is experiencing,” Worters says. “One company may see a drop in claims, but that doesn’t necessarily mean another has seen these same improvements.”
In addition, Worters says improvements have to occur over several years before rates are likely to be adjusted down.
“The average person who is a good driver may see a slight decrease in their insurance, but rates are still up because of other issues such as inflation and fraud,” she says.
Perhaps the biggest boon to policyholders will simply be in knowing that they are now less likely to face the headache and expense of having to replace their catalytic converter.
Expert tips to prevent catalytic converter theft
It can be difficult to stop a determined thief. However, you can take steps that will reduce your risk of having your catalytic converter stolen:
- Park your car in a garage whenever possible—and in well-lit areas in other situations.
- Install an alarm system and have a visible security camera pointed at your car when it’s in its normal parking spot to deter thieves.
- Engrave your vehicle identification number on the catalytic converter to make it easier to identify the converter if it is stolen.
If the worst happens and your converter is stolen, you will be reimbursed for the loss as long as you carry comprehensive coverage as part of your auto insurance.
Explore the top 11 anti-theft devices for cars
Frequently ask questions
What is a catalytic converter and why are they stolen?
A catalytic converter helps your converter clean its exhaust. It might seem strange that thieves would be so interested in a car part that serves such a humble purpose.
However, some pricey precious metals — including platinum and palladium — are used to create the converter. That makes them a tempting target, especially since it is easy to steal them from the car’s underside.
A slick thief can remove a catalytic converter in less than a minute using a battery-operated saw.
How much does it cost to replace a catalytic converter?
The cost to replace a catalytic converter can vary widely. Many vehicles allow you to replace the converter with a universal-fit unit. In such cases, the cost of replacement can be between $200 and $300, according to AutoZone.
Direct-fit units are more complex and cost more. If your car requires this type of converter, you can expect to pay between $300 and $2,500.
Does car insurance cover catalytic converter theft?
Your auto insurance will likely cover the cost of replacing your catalytic converter — and any associated damage — as long as you carry comprehensive coverage.
If you do not have this coverage, you will be responsible for replacing the converter and any other out-of-pocket costs.
Will the drop in catalytic converter thefts continue?
It’s impossible to say whether the drop in catalytic converter thefts will continue. However, thieves will likely have less incentive to steal the converters if the price of rhodium and other metals remains lower.
“We are not seeing any signs that would indicate another increase in catalytic converter thefts,” Zeitlinger says.
Resources & Methodology
Sources
- AutoZone. “How Much Does a Catalytic Converter Replacement Cost?” Accessed Novmeber 2024.
- Claims Journal. “Catalytic Converter Thefts Down by Half as Precious Metal Prices Drop.” Accessed Novmeber 2024.
- NBC News. “Catalytic converter thefts decline after pandemic-era surge.” Accessed Novmeber 2024.
- NPR. “How to protect your car from catalytic converter theft, and what to do if it happens.” Accessed Novmeber 2024.
- Progressive. “Is a stolen catalytic converter covered by insurance?” Accessed Novmeber 2024.
- State Farm. “State Farm data reveals 74 percent drop in catalytic converter thefts.” Accessed Novmeber 2024.
- State Farm. “State Farm data reveals drop in catalytic converter theft.” Accessed Novmeber 2024.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.