According to the Insurance Bureau of Canada (IBC), in 2023, insurance companies had to pay more than $1.5 billion in claims to replace stolen vehicles, representing the second consecutive year where claims for theft automobile companies have crossed the billion-dollar mark. The 2023 figure represents a 254% increase from the $440 million claimed in 2018.
This text is a translation of an article from CTV News.
To compensate for losses, insurance companies increase premium prices for customers, especially those who drive the most frequently stolen vehicles.
Daniel Ivans is an insurance expert for RATESDOTCA. In a statement to CTV News, he says the insurers’ decision is a predictable outcome that falls on the shoulders of drivers.
“High rates of car theft continue to drive up premium prices as insurers try to balance the costs of unprecedented claims,” Mr Ivans said. “For drivers of frequently stolen vehicles, it is even more important to compare car insurance premiums, as prices can vary significantly between insurers, depending on claim costs and how whose risk they calculate.”
See also: Brazen and “scary” car theft caught on camera in Laval
Which vehicles?
Drivers behind the wheel of a Honda Accord, CR-V or Civic, Ford F-150, Toyota Highlander or RAV4 face a 37% increase in the average cost of the premium. all-risk insurance, according to RATESDOTCA data.
Last February, the federal government separately announced it would spend nearly $43 million to combat the rise in auto theft. Public Safety Minister Dominic LeBlanc said helping local police plays a “crucial role” in the fight against car theft.
Liam McGuinty, BAC vice president of strategy, says these figures indicate the crisis is harming citizens’ well-being and placing a heavy burden on law enforcement.
“Canada’s car theft crisis is putting pressure on drivers’ insurance premiums,” McGuinty said in a news release.
“Auto theft continues to increase, as do the costs associated with it. Auto theft is not a victimless crime.”
– Liam McGuinty, BAC Vice President of Strategy
Where do the thefts occur?
The majority of car thefts occur in Ontario. In 2022 alone, the province accounted for nearly $700 million of the $1 billion in theft claims, an increase of nearly 300% compared to 2018, according to the IBC. The following year, Ontario became the first province to reach the $1 billion mark in auto theft claims costs.
In May 2023, the Ontario government announced it would provide $51 million to help police dismantle what it described as “organized crime networks” that orchestrate thefts.
According to the province, car thefts increased by 72% between 2014 and 2021 and by 14% in 2022.
