GTA auto theft surge prompts insurers to push tracking systems
GTA auto theft surge prompts insurers to push tracking systems | Insurance Business Canada
Motor & Fleet
GTA auto theft surge prompts insurers to push tracking systems
Escalating car theft rates have driven concern
Motor & Fleet
By
Jonalyn Cueto
In response to a concerning surge in auto thefts across the Greater Toronto Area (GTA), insurance companies are implementing new measures to safeguard vehicles, particularly installing tracking systems.
This move comes as a response to the escalating rates of vehicle theft and carjackings, prompting insurers to take proactive steps to mitigate losses.
Recent statistics from Toronto police’s major crimes indicator dashboard show that vehicle thefts surged by 24.5% in 2023 compared to the previous year, with 12,181 incidents reported. The increase follows a notable 47.4% rise in 2022 from the year prior.
In light of these developments, some insurance companies have begun urging owners of highly targeted vehicles to install tracking devices as a preventive measure against theft, according to CBC News.
The TAG vehicle tracking system, which uses multiple wireless transmitters affixed to different parts of a vehicle, has emerged as a favoured solution among insurers due to its efficacy in recovering stolen vehicles.
Samantha Sannella, a Toronto resident and owner of a Jeep Rubicon, received a notification from her insurer mandating installing a TAG system or facing a $500 surcharge. But while she acknowledged the system’s importance, Sannella wanted more flexibility in choosing the tracking provider.
“I can understand why they want it, but I think you should be allowed to choose who provides the tracking system,” she said.
Mitigating auto theft risks
Belairdirect and Desjardins are among the insurers that have urged customers to adopt the TAG system as part of their security measures.
“In our opinion, TAG is the best technology available to accomplish that,” said Guillaume Lamy, senior vice president of personal insurance at Belairdirect.
Amanda Dean, vice president for Ontario, the Insurance Bureau of Canada (IBC), highlighted the staggering financial impact of auto theft, with insurers paying out over $1 billion in claims for stolen vehicles nationwide in 2022. Half of the losses were attributed to the GTA alone.
Dean emphasized the importance of collaborative efforts involving governments, law enforcement agencies, and car manufacturers to address this pressing issue.
While insurers are taking proactive steps to mitigate the risk of theft, she stressed the need for broader support to effectively combat auto theft and ensure the safety and security of communities.
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