New York has Law to Address Airbag Theft

08/09/96

In June, New York's Governor George Pataki signed a law that requires auto repair and recyclers who sell used airbags to keep a strict record concerning the airbags. The law is the first of its kind in the U.S., and attempts to deal with what some call the fastest growing problem that confronts auto owners, car dealers and the companies that insure them.

The National Insurance Crime Bureau says that in 1994, airbag theft accounted for 5 percent of all auto-related theft claims. New York Assemblywoman Audrey Hochberg, a co-sponsor of the New York legislation said, "Airbag theft costs millions of dollars. They are easy to steal and very expensive. Car dealers have been hit with wholesale break-ins. On the street, thieves go after specific models."

The idea behind the law is to force recyclers to verify that an airbag was not stolen. Repair shops also must keep track of all the airbags they install by keeping records on where the bags were purchased, giving the information to the consumer or the insurance company, and keeping that information on file.

Ann Doherty, an official for the American Insurance Association said, "This law creates a paper trail and makes trafficking harder. It should reduce claims in the area of stolen bags. We are very supportive."

John Cucci, a vice president with the Alliance of American Insurers, said the cost of replacing a stolen airbag ranges from several hundred dollars to as much as $1,200.

Paul Dever -- The Auto Channel