What’s happening with auto theft claims in Canada?
What’s happening with auto theft claims in Canada? | Insurance Business Canada
Motor & Fleet
What’s happening with auto theft claims in Canada?
IBC publishes analysis of claims count and values
Motor & Fleet
By
Terry Gangcuangco
The Insurance Bureau of Canada (IBC) is urging governments and other stakeholders to sustain the fight against auto theft, given the positive outcomes from recent actions.
According to newly published data from IBC, auto theft insurance claims dipped by 19% year on year in the first half of 2024 while overall rates in Canada remain significantly higher than historical figures. Over the last decade, auto theft claims have surged by 138%, with the value of those claims seeing a massive 442% leap.
Auto theft claims
H1 2024
H1 2023
H1 2014
Claims count
17,647
21,907
7,406
Claims costs
$544,721,183
$764,599,578
$100,506,581
IBC’s analysis was based on information from the General Insurance Statistical Agency and Groupement des assureurs automobile. Notably, the numbers only include auto theft claims from Ontario, Alberta, and Atlantic Provinces.
Liam McGuinty, IBC vice president for strategy, said: “Concerted actions by law enforcement, insurers, governments, and drivers to combat theft are showing results, but more remains to be done.
“Canada’s auto theft rates have soared in the last 10 years, placing pressure on drivers’ insurance premiums, compromising public safety, and causing Canadians concern and trauma. While theft frequency dropped slightly in the first six months of 2024, the problem remains significantly above historical trends.”
Ontario and Quebec saw reductions in theft claims, with decreases of 16% and 41%, respectively, during the first half of 2024. However, other regions are still grappling with rising rates.
Alberta, New Brunswick, and Nova Scotia posted increases in claims count of 1%, 14%, and 27%, respectively. Alberta, in particular, has seen the value of auto theft claims increase by 11% since last year and by 179% over the past decade.
Experts suggest the differences reflect a strategic shift by car thieves, who may be targeting areas where law enforcement resources are more limited. Provinces like Ontario and Quebec have implemented significant measures to curb auto theft, prompting criminals to move their operations to regions in western and Atlantic Canada.
High-end luxury vehicles continue to be a prime target for theft, partly due to their value in illegal international markets. Many stolen vehicles are exported abroad by organized crime groups, and the proceeds often fund activities like drug trafficking, arms smuggling, and even terrorism.
“Fighting auto theft requires a whole-of-society approach,” McGuinty added. “Now is not the time to take our collective foot off the accelerator in this fight. The auto theft crisis continues to negatively impact Canadians’ pocketbooks and their sense of safety.
“The property and casualty insurance industry remains committed to working alongside all orders of government and stakeholders to continue to address the national auto theft crisis.”
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