Auto insurers urge governments to close Re-VINning loopholes

Canada’s auto insurers are calling on the federal and provincial governments to tighten loopholes allowing car thieves to give stolen cars a new Vehicle Identification Number (VIN) and then sell them to unsuspecting customers.

In calling for a crackdown on Re-VINning vehicles, Canada’s auto insurers gave a shout-out to all levels of Canadian governments for cracking down on ways that car thieves exploit to export and sell stolen cars overseas. Anecdotally, some insurers tell Canadian Underwriter the preliminary measures taken have had some influence on lowering auto theft numbers.

“However, the focus to date has largely been on preventing stolen vehicles from exiting the country,” says Hanna Beydoun, manager of policy at IBC, in an article published on IBC’s website Thursday. “While important, halting the export of stolen vehicles cannot be the sole focus.

“A growing number of vehicles are stolen, rebranded, and sold to unsuspecting customers here in Canada through a practice known as ‘ReVINing.’”

A VIN is a unique, 17-character code assigned to every manufactured vehicle. It provides the vehicle’s serial number as well as its make, model, year and place of manufacture. “It’s like a fingerprint for cars,” as IBC explains.

When criminals steal cars, they may try to alter the VIN of the stolen vehicle to conceal its identity. This enables the criminal to register and sell the stolen vehicle to an unsuspecting buyer.

“Potential buyers should be aware of the risks associated with inadvertently purchasing a re-VINned vehicle,” Guardsman Insurance, an insurance brokerage, warns consumers on its website.

In other news: Intact’s estimate for Jasper and Toronto NatCat losses

“Possession of stolen property can lead to the lawful seizure of the vehicle by law enforcement, financial loss for the buyer, and potential denial of insurance claims. Knowingly purchasing a stolen vehicle may result in criminal charges.”

Auto theft also “drives up the cost of auto insurance for everyone,” IBC says. “In Ontario alone, auto theft added an extra $130 to drivers’ insurance premiums” on average.

Ways to stop Re-VINning

IBC is calling on the federal government to establish a National VIN Registry to promote seamless information-sharing between provincial VIN registries.

“Provincial centres that administer vehicle registration, such as Service Ontario, do not have a system that checks if a VIN already exists in other jurisdictions,” IBC explains. “This means a vehicle can be registered in one province with the same VIN as a vehicle registered in a different province.

“This loophole enables criminals to register stolen vehicles with a duplicated VIN, making it difficult to track and identify stolen cars across provincial borders.”

In the federal government’s National Action Plan on Combatting Auto Theft, released May 2024, the feds urge the provinces to make “investments to enable comprehensive data sharing across jurisdictions through the existing Interprovincial Record Exchange (IRE).”

IBC is also calling on provinces to close other procedural loopholes exposing Canadians to re-VINning. For example, it asks provinces to:

Eliminate public access to RINs

A Registered Identification Number (RIN) is a unique number assigned to each vehicle owner in Ontario that tracks the vehicles they own or have owned. This includes sensitive information such as VINs. Members of the public (including car thieves) can purchase a RIN history for a small fee, making it easier for criminals to disguise stolen vehicles with legitimate-looking identifiers.

Shutting down public access to RINs would prevent criminals from easily obtaining detailed vehicle information, IBC says.

Ban third-party VIN authorizations

Third-party registration allows someone other than the vehicle owner to complete the registration process on the owner’s behalf. This process is intended for car dealers and dealerships.

But it also “inadvertently allows nearly any individual to transfer registration of a vehicle or register a vehicle in another person’s name,” says IBC. “This is typically done for convenience, but criminals exploit third-party registration by using a fake identity to register a stolen vehicle.”

“Restricting third-party authorization to individuals with power of attorney can reduce the number of fraudulent registrations.”

Restrict use of NVIS forms to licensed car dealers

Auto manufacturers produce forms called New Vehicle Information Statements (NVIS) to register new vehicles for the first time, as IBC explains.

“However, NVIS forms are being forged and used to register vehicles with older model years,” IBC says. “Restricting their use to dealers can eliminate this loophole.”

At an individual consumer level, brokers are advising clients shopping for cars to check their prospective new vehicle’s information against CarFax reports. The CarFax report information should match the information provided by the seller.

Also, Guardsman suggests to car buyers, “have the seller provide a Used Vehicle Information Package (UVIP) from the Ministry of Transportation (MTO). This package, mandated by law, contains essential information, including vehicle details, registration history, lien status, Retail Sales Tax (RST) details, and the bill of sale.”

Feature image courtesy of iStock.com/welcomia