For the insurer and the owner of a vehicle involved in a “rockrental,” parting is sweet sorrow indeed. This type of loss, whichis also called a “drug give-up,” refers to the growing incidence ofinsured drivers who relinquish their automobiles in lieu ofmonetary payment for illegal substances, usually crack cocaine.

As Roy Mura, Esq., Mura & Storm, PLLC, explained in today'sInternational Association of Special Investigation Units' sessiontitled “Investigating the 'Crack Ride' Loss — A Claim Study,” theperson borrowing the vehicle in question is usually a small-timedrug dealer who may otherwise lack transportation. The dealer inthis case may use the car to run personal errands and then notreturn it to the owner. When and if the automobile is deliveredback to the owner, it may be in a state of disarray, often havingbeen vandalized to some extent.

Subsequently, the insured/drug user in such a scenario will filea claim alleging theft. Insurers are then confronted with thearduous task of determining coverage and if an auto theft has infact occurred — as defined by policy limits, if not in thetraditional sense.

“This loss type has become more prevalent in past seven years inthe auto insurance industry,” said Mura. “It definitely presentsunique challenges to special investigations.”

Mura offered advice and explored some of the underlyingpsychological and socioeconomic factors behind the phenomena whilehelping investigators become more attuned to the NICB commonindicators of crack ride losses so that they know what to look forand what type of evidence to collect.

“In theory, investigators will share this knowledge with claimstaffers, who can then make educated coverage decisions and willultimately decide to either grant benefits or deny them,” saidMura.

Insurers were urged to examine suspicious cases and to becognizant of the notable distinction between voluntary parting andactual theft. The session included a thorough discussion of anacademic article recently published by a group of universityprofessors. Based on a string of thefts in Birmingham, Ala., thestudy identified common terms between these loan and loanees andfound that more than half of the cars reported stolen in that areaat that time could actually be dubbed “rock rentals.”