Canada’s persevering with auto theft crisis drives complete auto premiums for generally stolen autos by virtually 40% above common, fee aggregator RatesDotCa reviews.
The excellent portion of auto insurance coverage premiums for ten of essentially the most generally stolen autos in 2024 is roughly 37% above the common complete premium price, in keeping with current information from RateDotCa’s auto insurance coverage quoter.
Complete auto insurance coverage protects stolen autos or autos broken throughout a theft try. It additionally covers any automobile harm that isn’t brought on by a collision, together with theft, vandalism, hearth, extreme climate, pure disasters, and falling objects.
Knowledge launched earlier this month by Insurance coverage Bureau of Canada (IBC) reveals auto theft claims skyrocketed to a record-breaking $1.5 billion in 2023. That was up from an estimated $1.2 billion in 2022, which was additionally a report on the time. By comparability, auto theft claims prices averaged $556 million yearly between 2018 and 2021, IBC reviews.
The issue is especially expensive in Ontario, the place auto theft claims prices elevated a staggering 524% between 2018 and 2023.
In Ontario, common auto insurance coverage premium costs have been $1,796 as of October 2023, up 7% year-over-year, in keeping with data from the Financial Services Regulatory Authority (FSRA). The typical premium worth within the Larger Toronto Space (GTA) was additionally up 7% year-over-year at $2,391.
“Excessive charges of auto theft are persevering with to push premium costs larger as insurers attempt to stability out unprecedented claims prices,” says Daniel Ivans, licensed insurance coverage dealer and RatesDotCa insurance coverage knowledgeable. “For drivers of generally stolen autos, it’s much more essential to buy round for auto insurance coverage, as costs may fluctuate extensively from insurer to insurer, relying on claims prices and the way they’re calculating threat.”
Equité Association’s Top 10 most stolen vehicles in Canada final yr embrace the Honda CR-V, Dodge RAM 1500 Sequence and the Ford F150 collection (in first, second and third place, respectively). For its half, RateDotCa’s information displaying a 37% above-the-average complete auto premium for essentially the most generally stolen autos used the next information:
Quotes for complete premium costs for a 35-year-old male driver dwelling in Toronto with no prior convictions for ten generally stolen automobile fashions, together with:
- 2019 Honda CR-V;
- 2023 Ford Lexus RX350h;
- 2023 Ford F150 Lariat Supercrew
- 2018 Honda Civic LX;
- 2023 Toyota Highlander XLE
- 2017 Dodge/Ram Ram 1500 Crew
- 2018 GM Sierra 1500 Crew
- 2018 Honda Accord Sport
- 2016 Jeep Cherokee Trailhawk
- 2023 Toyota RAV4 XLE.
Adam Mitchell, CEO of Ontario brokerage Mitch Insurance coverage, just lately warned that shoppers might find themselves without comprehensive auto coverage in the event that they submit a number of claims inside a particular timeframe resulting from quite a few thefts.
For instance, some carriers will permit solely three complete claims in three years, Mitchell reviews.
Mitch Insurance coverage just lately assisted a driver who had submitted three auto theft-related auto complete claims since 2023. Due to this, their insurer stopped providing the protection and the shopper needed to discover a new coverage.
Their earlier insurance coverage was about $2,600, however they have been being quoted $11,500 for a coverage that included complete protection.
“We have been capable of finding a coverage for lower than $9,400 and that fee could possibly be lowered to beneath $8,500 if the driving force selected to enroll in a telematics program,” Mitch Insurance coverage reviews. “A greater worth than the $11,500 they have been quoted, however nonetheless considerably greater than what they have been paying earlier than surpassing their insurer’s complete claims threshold.”
Function picture by iStock.com/welcomia
