One of the many worldwide impacts of the COVID-19 pandemic was the disruption of supply chains. Most of us likely remember the shortages on toilet paper and groceries, and the difficulty getting packages delivered on time. Among these difficulties was the sharp rise in the theft of catalytic converters, which became such a dire state of affairs that it made national news. Chicago and other cities in Illinois were hit particularly hard, creating considerable stress and financial hardship for motorists.
Catalytic converter theft has risen steadily for the last few years — but that might be starting to change. According to some recent data from State Farm, the number of catalytic converter thefts has actually been dropping. Data from January 1 to June 30, 2023 shows catalytic converter thefts at 14,000 this year, as compared to over 23,000 reported thefts the year before. Although this still amounts to a whopping $41.7 million in payouts, it’s far less than the $115 million from the year before, and even $73 million from 2021.
Of all the states hit hardest, Illinois ranked third, with almost 1,300 claims reported and around $2.9 million in payouts. So although those numbers are dropping, there are still good reasons to be concerned, especially if you’re a resident of Chicago.
Why Are Catalytic Converters Valuable?
So what exactly is a catalytic converter, and why are they so valuable that there’s an epidemic of theft? Why has the rate of theft risen so sharply in recent years?
A catalytic converter is part of a car’s exhaust system. Its job is to convert harmful pollutants (hydrocarbons, carbon monoxide, nitrogen oxide) into water and less harmful versions of those same chemicals. Catalytic converters have been in use since the 1970s and are found in pretty much every new vehicle.
The reason they’re so alluring to criminals? A few factors. Number one, they’re easy to remove — about the size of a loaf of bread, mounted between the muffler and the engine, it’s relatively quick and easy to remove. But the major reason they’re so valuable is their metal content. Catalytic converters contain substantial amounts of palladium, platinum, and rhodium, the prices for which have all skyrocketed in recent years due to demand.
For example, in 2001 platinum was approximately $530 per ounce. In 2011, it reached a high of $1,700 an ounce. Palladium went from about $600 per ounce to almost $2,400 an ounce by 2021. But neither of those elements compare to rhodium, which reached an astronomical all-time high of $26,000 an ounce in 2021.
The increased demand, coupled with the difficulty in acquiring these materials thanks to supply chain issues, has led junkyards to actively collect catalytic converters in order to sell them for scrap, along with the highly valuable metals inside. Some junkyards even accept shipping of converters, which can go for anywhere from $140 to $1,500 apiece. This makes them an enticing target for thieves.
Chicago in particular has had high rates of catalytic converter theft in recent years. In fact, Illinois was one of the top five states for catalytic converter thefts between 2020-2022, according to the National Insurance Crime Bureau (NICB).
How Thefts Impact Car Insurance Rates
Unfortunately, even if you don’t have the catalytic converter stolen out of your car, you may still be financially affected by this rash of thefts. The reason? Stolen catalytic converters are covered by auto insurance, and a big surge in payouts can also mean a surge in your auto insurance premiums, making it challenging to find cheap Illinois car insurance. For example, the average yearly premium for auto insurance in Illinois is $1,394, per numbers from Renata Belasco at The Zebra. This is 9% less than the national average — but it’s a different story in Chicago, where the average yearly premium is $2,171. Factors such as urban traffic density and population do make a difference, but no doubt the high rates of auto theft in Chicago plays a part.
What Illinois is Doing to Combat Catalytic Converter Theft
Fortunately, the Illinois government is not standing idly by, and has recently taken steps to attempt to curb this serious (though declining) rash of thefts. The state has recently introduced new legislation with stricter penalties for individuals caught for illegal trading of catalytic converters. This legislation includes mandatory documentation for the sale of such converters, which will make it less easy for thieves to traffic in them. The law will also facilitate creating more of a paper trail for converter sales, meaning law enforcement will have an easier time tracking down thieves and illegal resellers.
What can you do in the meantime? Consider installing an alarm system on your car and security cameras around your house or garage. Engrave your VIN on the catalytic converter itself, and make sure your car is always parked in a garage or well-lit area if you can help it.