Insurance claims costs point to worsening auto theft crisis

Insurance claims costs point to worsening auto theft crisis | Insurance Business Canada

Motor & Fleet

Insurance claims costs point to worsening auto theft crisis

Latest numbers suggest national problem not easing

Motor & Fleet

By
Terry Gangcuangco

The ongoing national auto theft crisis continues unabated, with new data from the Insurance Bureau of Canada (IBC) revealing a continuing rise in insurance claims for stolen vehicles.

In 2023, claims costs for auto theft hit a staggering $1.5 billion, a significant increase from previous years and marking the second consecutive year that claims have exceeded $1 billion.

From 2018 to 2023, auto theft claims costs rose by 254%. In 2023 alone, losses from auto theft exceeded $1.5 billion, a nearly 20% increase from 2022, which held the previous record. The average annual cost from 2018 to 2021 was $556 million.

Year

Claims count

Claims costs

2018

31,915

$436,753,485

2019

32,504

$488,559,146

2020

28,714

$522,735,587

2021

34,038

$774,332,043

2022

45,434

$1,301,936,882

2023

49,679

$1,547,802,536

“These numbers indicate that the auto theft crisis persists, disrupting the lives of Canadians and causing them concern and trauma,” IBC vice president for strategy Liam McGuinty stated. “It places a heavy burden on law enforcement and courtroom personnel who work tirelessly to address these crimes.

“Canada’s auto theft crisis is also placing pressure on drivers’ insurance premiums – as auto theft continues to increase, so do the associated costs. Auto theft is not a victimless crime.”

According to IBC, which will be releasing province-specific figures in the coming weeks, Ontario has been hit hardest, with auto theft claims costs soaring by 524% between 2018 and 2023, surpassing $1 billion for the first time last year.

In IBC’s view, despite significant federal and provincial efforts to tackle the issue, the latest data underscores the need for more robust measures to prevent vehicle theft and illegal exportation. IBC has called for immediate actions to halt the shipping of stolen vehicles overseas and enhance vehicle security.

“Insurers have taken proactive steps to help consumers combat auto theft, but they can’t do it alone,” McGuinty said. “We need a whole-of-society approach. IBC recognizes the efforts undertaken by governments to date to fight auto theft, but more needs to be done, including at the national level.

“Attention needs to be paid to modernizing Canada’s outdated vehicle safety standards, which were last updated in 2007, and stopping the outflow of stolen vehicles from Canada’s ports. IBC and its members look forward to the important next steps anticipated in the federal government’s action plan to combat auto theft.”

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