Auto theft crisis deepens as insurance claims top $1.5 billion

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Canada's auto theft crisis is worsening, with insurance claims costs exceeding $1.5 billion for the first time.

New data from the Insurance Bureau of Canada (IBC) shows insurance providers handled 49,679 claims related to stolen vehicles in 2023, with costs exceeding $1.54 billion for the year. Overall, the number of claims has risen by 56 percent since 2018, while costs have risen by 254 percent.

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“These numbers indicate that the car theft crisis continues, disrupting the lives of Canadians and causing them anxiety and trauma,” Liam McGinty, vice-president of strategy at IBC, said in a press release. “It places a heavy burden on law enforcement and courtroom personnel who work tirelessly to address these crimes.”

Car owners end up paying higher insurance premiums due to the higher theft rate. 2023 report from Rate.ca finds stolen cars frequently — like the Honda CR-V and Dodge Ram 1500 Series — could face premium increases of more than 25 percent and an additional $500 fee for theft.

“Canada's car theft crisis is also putting pressure on insurance premiums for drivers – as car theft continues to increase, so too do the associated costs,” McGinty said. “Car theft is not a victimless crime.”

Car theft is most evident in Ontario, where claims costs have risen 524 per cent since 2018, exceeding $1 billion.

Ontario Transport Minister Prabhmit Sarkaria told reporters last week that a car is stolen in Ontario every 14 minutes.

The Ontario government recently announced Strict new penalties For those convicted of the crime, which includes lifelong driving license suspension for repeat offenders.

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In February the federal government Announced $15 million in funding For police agencies to step up car theft enforcement.

However, the IBC said more measures were needed to prevent the export of stolen vehicles internationally.

“IBC recognizes the efforts governments have made to date to combat car theft, but more needs to be done, including at the national level,” McGinty added. “Attention must be given to updating Canada’s outdated vehicle safety standards, which were last updated in 2007, and stemming the flow of stolen vehicles from Canada’s ports.”

• e-mail: bcousins@postmedia.com

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