IBC calls for "whole-of-society approach" to reduce vehicle theft cases

IBC calls for “whole-of-society approach” to reduce vehicle theft cases | Insurance Business Canada

Motor & Fleet

IBC calls for “whole-of-society approach” to reduce vehicle theft cases

It said insurers are taking steps to address the crisis

Motor & Fleet

By
Mika Pangilinan

The Insurance Bureau of Canada (IBC) is advocating for a collective approach to tackling the growing number of auto theft cases in the country, involving insurers and governments, law enforcement agencies, and auto manufacturers.

In a press release, the IBC said the insurance industry is proactively fighting Canada’s auto theft crisis.

The Greater Toronto Area (GTA) alone accounted for approximately $500 million, with specific regions such as Durham, Halton, and York witnessing the sharpest increases in auto theft insurance claims costs over the last five years.

Moreover, Ontario’s theft claims costs surged from roughly $160 million in 2018 to $700 million in 2022, marking a 329% increase.

One such initiative involves the subsidization of approved aftermarket tracking devices. Some insurers are also applying surcharges on vehicles identified to be at the highest risk of theft but are willing to waive these fees if policyholders take specified measures to protect their vehicles.

“It’s clear that government action is required to combat auto theft in Canada, but empowering drivers with information on the steps they can take to protect themselves is also important,” said Amanda Dean, IBC’s Ontario interim vice president.

“Whether it be installing anti-theft or tracking devices, or simply buying or leasing vehicles that are harder to steal in the first place, drivers can take action to keep themselves from being victims of auto theft and to reduce their auto insurance premiums.”

Consumers are encouraged to consult their insurance representatives and refer to Équité Association’s list of Canada’s top 10 most stolen vehicles before purchasing cars.

The auto insurance sector also utilizes the Canadian Loss Experience Automobile Rating (CLEAR) system to categorize vehicles into higher and lower risk rankings, IBC said. A lower CLEAR ranking often indicates a lower theft risk.

What are your thoughts on this story? Feel free to comment below.