Which Alberta cities top car-theft claims list?

Auto theft claims costs in Alberta jumped 55% between 2021 and 2023, says recent data released by Insurance Bureau of Canada (IBC).

But which cities bear the brunt of claims activity?

A new IBC data release issued today notes theft claims costs leapt by a distressing 65% in Edmonton and 59% in Calgary during those three years. Medicine Hat, Lethbridge and Fort McMurray also saw sharp spikes in auto theft claims.

“The auto theft crisis continues to persist across Alberta, and it’s adding pressure to the cost of auto insurance for all drivers,” says Aaron Sutherland, vice president of IBC’s Western and Pacific regions.

“Auto theft disrupts lives and creates fear in communities across the province. Urgent action must be taken to address this growing trend.”

IBC’s release notes Alberta’s auto insurance system is among the most cost-pressured in Canada, based on data from the General Insurance Statistical Agency, which provincial insurance regulators oversee.

That data indicates legal costs now make up a larger portion of auto coverage premiums paid by Alberta drivers than those in all other Canadian provinces. Further, the data places Alberta second nationwide for the amount spent per vehicle repair claim and the frequency at which vehicles are stolen.

“Claims costs now exceed the amount of money insurers are collecting in premiums because of the auto insurance rate cap in Alberta,” adds Sutherland.

“As a result, insurers are being forced to scale back their offerings to remain viable, and this is making it more difficult for many drivers to secure the coverage they need. Reform is needed urgently, and as the government considers various solutions to reduce premiums for drivers it’s critical that it addresses these cost pressures.”

By the numbers

In terms of dollar value, Calgary tops the province’s five auto claims hotspots at $33,076,848 in 2023, compared with $20,856,769 in 2021. Edmonton’s next with $26,193,922 in 2023 against 2021’s $15,749,461.

Meanwhile, Fort McMurray saw $3,311,123 in 2023 claims, from $2,071,849 in 2021; Lethbridge jumped to $955,716 in 2023 against $732,742 in 2021; and Medicine Hat rounds out the Top 5, reaching $672,398 in 2023 from $390,761.

IBC further notes a federal plan to combat auto theft tabled months ahead of schedule, while welcome, still lags the urgency of Canada’s auto theft crisis.

“Alberta’s insurers are urging all orders of government to work together to implement the plan’s recommendations,” it says.

“In Alberta, these include providing more resources for coordinated, inter-agency law enforcement focused on auto crime; the creation of a provincial auto theft team with dedicated prosecutorial support; and, via this team, strengthening provincial capacity to police and deter organized crime’s involvement in auto theft, as is being done in other provinces.”