Australian car insurers are missing out because local car manufacturers are avoiding the take-up of new vehicle identification technology.

Victorian motoring body the RACV and the National Motor Vehicle Theft Reduction Council (NMVTRC) are calling on the local industry to replace the current aluminium plates used to identify an individual vehicle engine with new tamper-proof technology. New “self-voiding” labels disintegrate when thieves try to remove them, making it impossible to “rebirth” a stolen car as a legitimate vehicle for sale.

RACV Chief Engineer Vehicles Michael Case says the labels would add as little as $2 to the overall cost of a new car, but Australia’s four local manufacturers have deemed that is too high.

But there is more optimism from the import sector. NMVTRC Executive Director Ray Carroll says a number of imported brands, including Audi, BMW and Honda, are likely to begin using the new labels soon. He says those marques are fast becoming known for their strong emphasis on vehicle security.

Mr Case says vehicle security plays a small but important part in the way premiums are calculated.